1. ENTREPRENEURSHIP IN ENTERTAINMENT TECHNOLOGY WELCOME!

2. TODAY’S AGENDA Company Structure Stock Hacks Presentation Skills Next Class Resources

3. COMPANY STRUCTURE

4. Individual Corporation

5. Sole Proprietorship You as an Individual Own Property. Pay Taxes. Held Liable. Your Own Boss.

6. Sole Proprietorship C Corporation Distinct Legal Entity Owns Property. Pays Taxes. Held Liable. Owned by Shareholders. Managed by Board of Directors.

7. Sole Proprietorship C Corporation Partnership You as Individuals Individually: Own Property. Pay Taxes. Held Liable. Agree on Responsibilities and Some Liabilities.

8. PERSONAL TAXES 65% Personal Income Taxes After Tax $ 35%

9. CORPORATE TAXES 65% Corporate Profits Taxes After Tax $ 35%

10. DOUBLE TAXATION 43% 65% Taxes After Tax $ Taxes 35% Personal Income Corporate Profits Dividend

11. Sole Proprietorship Partnership C Corporation Tax Benefits Liability Protection

12. Sole Proprietorship Partnership C Corporation S Corp LLC Tax Friendly Entities

13. LLC Sole Proprietorship Partnership C Corporation S Corp Distinct Legal Entity Owns Property. Held Liable. Owned by Shareholders*. Managed by Board of Directors. Passes Income Through to Shareholders. * with specific limitations

14. Sole Proprietorship Partnership C Corporation S Corp Distinct Legal Entity Owns Property. Held Liable. Owned by Members. Members Set The Rules. LLC

15. Sole Proprietorship Partnership C Corporation S Corp LLC COMPANY STRUCTURE

16. EVIL POWERPOINT ALERT!

17. SUMMARY LiabilityTaxesOwnershipControl Sole Proprietor Personal IndividualIndividuals PartnershipPersonal IndividualsPartners S CorporationCorporationPersonal One Class of Stock Board of Directors LLCCorporationPersonal Membership Units TBD C CorporationCorporation Multiple Classes of Stock Board of Directors

18. ONE MORE THING… Best chance to define everyone’s role and worst case scenarios. Do it.

19. STOCK HACKS

20. VALUATION Value of Company = $ / share Shares Outstanding

21. STOCK OPTIONS Promise of Future Purchase at Today’s Price

22. VESTING

23. CLASSES OF STOCK Restricted Preferred

24. LIQUIDITY Private vs. Public

25. STOCK HACKS Valuation Stock Options Vesting Classes of Stock Liquidity

26. PRESENTATION SKILLS

29. NEXT CLASS

30. PRESENTATIONS Rework Tuesday’s Pitch

31. RESOURCES

32. Company Structure A good corporate lawyer! http://www.bizfilings.com/learn/llc-vs-s-corp.aspx - a lite overview of LLC vs. S Corp tradeoffshttp://www.bizfilings.com/learn/llc-vs-s-corp.aspx Presentations TechStars TEDTalks VC and Funding – Fred Wilson www.avc.com – blog of Fred Wilson, VCwww.avc.com http://www.avc.com/a_vc/mba-mondays/ - subset of his posts dealing with businesshttp://www.avc.com/a_vc/mba-mondays/ @fredwilson - follow him on Twitter