IT Company Structure Organization

When does an IT company need to structure a business?

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  Two or more founders run the business.

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  The company hires IT specialists in the USA and worldwide.

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  Business needs to reduce the tax burden.

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  The company creates IT products for B2B in Fintech, M-Health, AI & Big Data, ADtech, and Cloud Computing.

What are the stages of creating an IT organizational structure?

• Development of an IT business structure map for a new business
• Due Diligence
• Registration actions
• Development of internal documentation
• Financial structuring
• Further legal support

Why do IT companies need structuring?

• External factors

To legalize a business,  you must do the following: registere a company, become a taxpayer, receive judicial and administrative protection.

To reduce the tax burden you can choose the country of incorporation of parent and operating companies with special conditions and benefits for IT business.

To create a unified ownership structure, you can distribute profits and functional responsibilities among the founders.

To attract investments, you can do the following: develop a strategic business plan for business angels, prepare a company for due diligence, enter an IPO, ICO, or IEO.

You need to register intellectual property rights and prepare financial and accounting reports to sell a company.

• Internal factors

To develop a financial policy: conduct an audit of income generation and distribution of profits, open new accounts, pass bank compliance. Comply with the requirements of payment systems, currency, and financial legislation.

To determine the structure and responsibilities of co-founders and top managers: CEO, CFO, COO, CTO, and CMO.

To establish conditions for forming teams: define the rules and criteria for hiring employees; develop internal policies for recruiters and contracts for employees and subcontractors.

To combine intellectual property rights within one company, you can do the following: include into the company's assets trademarks, know-how, patents, and domains. Transfer source codes, databases, and other objects for storage to this company.

What documents do IT lawyers prepare for creating the organizational structure of an information technology company?

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  Shareholder Agreement
  The document determines the conditions for opening a business: the shares of participants; functional responsibilities; the procedure and management bodies of the company; the percentage of the profit of each founder; algorithms for resolving conflict situations; and the procedure for entering and exiting by the founders.

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  Internal policies, instructions, and labor contracts for top managers and managers
  Documents establish duties, professional responsibility, the amount of payment, material incentives, staffing, work, and vacation schedules.

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  Term Sheet Agreement
  It determines the conditions for future transactions with investors. We establish the obligation to open a company and agree on investment rounds. Using Term Sheet companies protect confidential information transferred to the investor before signing the actual agreement and prohibit unfair competition.

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  Letter of Intent
  The document consolidates the intention of the partners to implement the project together. Lawyers establish a ban on disclosing information about future actions and business ideas.

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  Partnership agreements
  We allocate the responsibilities and profits of partner companies for joint development of IT products and monetizing them.

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  Agency or referral contracts
  Documents describe the conditions for attracting clients through the transfer of projects to a partner company on the recommendation or for subcontracting.

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  Investment agreements
  Lawyers fix the conditions and investment process: tranche payments, guarantees, the investor's consent regime, his share in the company and his role in making management decisions, restrictive conditions, and exit.

What is Due Diligence?

Before a sale, investment, merger, or acquisition, the company undergoes an audit - Due Diligence.

IT lawyers identify risks that may cause investment and purchase refusal. There are unstructured corporate relationships, a lack of contracts with employees and contractors, client contracts, partnership agreements and policies, unregistered intellectual property, and gaps in financial reporting.

After the audit, the Stalirov&Co team prepares a conclusion, eliminates risks, fills out due diligence documentation, and supports the transaction.

Case from IT lawyers

Who are we, and how do we generate solutions?

• The Stalirov&Co team develops information technology company's organization structure for Fintech and SaaS startups, online stores, outsourcing and outstaffing companies. Moreover, we work with organizational structure for a separate IT department of an industry company in the different fields of production and energy.
• We help successfully scale businesses and monetize IT products in the USA and the EU.
• IT lawyers analyze target markets, places of development and choose a profit center. They calculate the tax efficiency for the project.
• Our team supports the legal issues of the company in foreign countries. We register IT companies and share our business experience in Cyprus, Estonia, the UK, the USA, the Netherlands, Ireland, the United Arab Emirates, Hong Kong, and other countries.
• We develop and implement control systems for investment and financial processes.
• The Stalirov&Co team supports transactions for the sale and the attraction of venture investments and business angels.