Phase 4
Foundational Operational Setup
Establishing banking, securing IP, and setting up legal agreements.
Timing Note
These actions should occur concurrently with and following legal formations and team alignment.
8Establish Banking and Financial Infrastructure
Actions for DMI Inc.:
- Open Corporate Bank Account: Once DMI Inc. is formed and has its EIN, open a corporate bank account in its name. Research banks that are startup-friendly and offer services suitable for a C-Corp.
- Initial Capitalization: Formally deposit the funds from founder stock purchases into DMI Inc.
- Basic Accounting Setup: Engage an accountant or set up basic accounting software (e.g., QuickBooks, Xero) to track DMI Inc. finances from day one.
Actions for Oregon LLC:
- Open LLC Bank Account: Once the Oregon LLC is formed and has its EIN, DMI Inc. (as the sole member) will authorize the opening of a separate bank account for the subsidiary.
- Initial Funding from DMI Inc.: If the LLC requires initial operating capital, DMI Inc. will make formal capital contributions or loans to it. Ensure this is properly documented.
- Separate Accounting: Maintain separate accounting records for the LLC.
Importance
Separate financial identities are crucial for liability protection, accurate financial tracking, tax reporting, and investor due diligence.
Responsibility
Joseph Ridgway (President/Secretary), Fletcher Watson (Treasurer), Accountant, Legal Counsel
9Secure Intellectual Property (IP)
Key Actions:
- Founder IP Assignment to DMI Inc.: Any relevant intellectual property developed by founders prior to DMI Inc.'s formation should be formally assigned to DMI Inc. via an Intellectual Property Assignment Agreement.
- DMI Inc. IP Strategy & Potential Assignment to Oregon LLC: Determine which IP will be held by DMI Inc. directly and which specific IP should be developed by or assigned/licensed from DMI Inc. to the Oregon LLC.
- Confidential Information and Invention Assignment Agreements (CIIAA): Have all founders and any early team members/contractors sign a CIIAA.
- Trademark Searches & Initial Filings: Conduct preliminary trademark searches for key brand names (e.g., Dagda Morrigan, LUGH, Crop Share Global, APTH). Consider initial trademark applications.
- Patentability Assessment: If you have patentable inventions, begin the process outlined by your legal counsel (e.g., utility patent search, provisional patent application).
Importance
Protecting IP is critical for maintaining competitive advantage and valuation.
Responsibility
Joseph Ridgway (President/Secretary), Fletcher Watson (Treasurer), Legal Counsel