Step 1: Developer Company for US-Projects

The first step in establishing a legal structure is registering an initial entity, the Developer Company. Once the initial teams and founders have started working on the project, the development starts in a centralized development which requires an entity to for protecting the founders, collecting intellectual property, signing contracts, renting office space, and raising funds when starting a decentralized network. This company is usually set up within the first 3-5 months of a project's development.

Purpose & Responsibilities

The main purposes of the Developer Company are:

Protection for founders

• By creating a legal entity, the founders of the project can separate their personal assets from the assets and liabilities of the business. This can provide some protection for the founders in case the project runs into legal or financial difficulties.

Start decentralized development of the protocol

• Hold a FIAT bank account
• Create a work environment and operational structure
• Hire employees and pay salaries
• Rent an office
• Own and protect rights to intellectual property

IP Development

• All intellectual property created is owned by the company
• Hold trademark rights and own assets such as graphics, etc.
• Sign NDAs / NCA agreements with employees and contractors

Fundraising

The DevCo is needed when a project starts to raise funds, as an entity is needed to sell equity and sign fundraising documents with investors.

• Pre-Seed / Early Seed: Raise funds at early fundraising stages via equity + (optional: future tokens to be purchased additionally once the tokens are launched)