So Uncle Henry has written the $250K check to launch your company, in return for 25% ownership.
Great news. You can now start assembling a small team to write that code and find the first customers.
But wait. Don't forget to file your Form D with the SEC. Under Regulation D--Rules Governing the Limited Offer and Sale of Securities Without Registration Under the Securities Act of 1933, an issuer offering or selling securities shall file with the SEC five copies of a notice on Form D (17CFR239.500) no later than fifteen days after the first sale of securities.
You will be in violation of SEC regulations if you ignore this simple filing. It is not worth having problems later when you go to raise your first round with the VC's who will ask to look at all your legal documents and be upset that you did not follow the rules.
Companies seeking to operate in the stealth mode should be aware that a lot of company information, including a business description will be published in EDGAR, so be prepared for modest exposure unless you structure your financing to avoid filing Form D.
You can do it yourself or have your lawyer file the form. Either way, be sure to do it if you are issuing Founder's Shares to Uncle Henry in return for his cash.
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