How To Legally Structure a Startup Studio.

Photo by Tingey Injury Law Firm on Unsplash

Developing and launching startups is exciting, but what most don’t think about is the administrative work it takes to get a venture off the ground. While there are tried and true methods for legally structuring a traditional startup (see infographic below), it’s unclear how one would go about legally structuring a Startup Studio.

Infographic by The University of Southern California

A Startup Studio is a company that provides a cost-efficient and low-risk platform for building innovative new companies. These entities are run by experienced entrepreneurs and typically funded by early-stage Venture Capital firms. Some Studios take outside idea pitches and, if the internal team likes the idea, will bring new founders into the Studio to work on it (example: Human Ventures). Other Studios focus on innovating exclusively with their core team (example: Wilbur Labs).

For more details on Startup Studios check out Studio Upstart.

Regardless of which approach a Studio takes, a legal structure needs to be in place to allow the Studio to launch and grow.

A Holding Company

A Startup Studio is an entity from which a variety of startups emerge. These startups…