Looking for advice on a legal issue. Here's what happened.
co-founder leaving before cliff. I've been dealing with this for about 4 months now and the situation isn't improving.
What are my legal options here? Is it worth pursuing?
Not a lawyer, but I have direct experience with this.
The #1 mistake I see here is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.
Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.
I've formed companies in both Delaware and Wyoming. For a small business with no outside investors, Wyoming is usually better — no state income tax, no franchise tax, and strong privacy protections.
If you're thinking about an S-Corp election, run the numbers first. It only makes sense once your net income is above ~$40-50k. Below that, the payroll costs eat up any tax savings.