On the TechTO stage ×1
First seen on the TechTO stage in 2021. Every talk is searchable — ask the archive about Shane ↗
In their words
These indemnity clauses can really come back to haunt you, where their standard form contract will have an indemnity clause which sets out a claim which your early stage startup would never be able to satisfy.
A lot of my advice to entrepreneurs is keep it simple at the start. Don't set up a web of corporations unless you really, really need one.
If you're working with even one other person in a partnership, they bring with them all their personal baggage. There's no separation of personal and corporate liability, which you'll get the minute you incorporate.
More from TechTO ×1
Around the web ×2
Quick answers
Who is Shane Murphy?
A Toronto lawyer and founder. He co-founded Founded Technologies, a legal tech platform for incorporations and business agreements, with Derek Hopfner and Travis Houlette in 2017. RBC Ventures acquired it in September 2020 and merged it into Ownr, which Murphy went on to run.
What was he doing before Ownr?
Practising law and then building Founded. He was a litigation associate at Sotos before starting Founded, and holds a BCL/LLB from McGill and a master's from the London School of Economics. He told TechTO he knows both the legal side and the nitty-gritty of running a startup.
What did he tell founders about incorporating?
To keep the structure simple. One company can carry several related products, and a product can later be sold as an asset without unwinding the corporation. He also argued against partnerships for anything long-term, because they offer no separation of personal and corporate liability.