Stripe Atlas, according to the Stripe’s website, is a product that helps customers found internet-based businesses. Users can create companies using suggested defaults and have an incorporated company and bank account set up within days.
“Since launching Stripe Atlas, we’ve worked with thousands of founders who are building everything from a behavioral therapist chatbot to a search engine for enterprises,” said Stripe Atlas Engineering Manager Alex Kehayias in a blog post this morning. “We’ve repeatedly heard from them that the challenges of starting a business hardly end with incorporation — there are often many complexities to navigate around the company’s legal and financial infrastructure as well.”
Companies using Stripe Atlas will be able to access the stock issuance tool for free. Founders can use the tool to issue stock to their founding team members, and users are also able to review, sign and store complete sets of stock-issuing documents for investments. These documents use terms standard in the tech industry, and they are generated from templates prepared by Orrick, a law firm often used by tech companies.
“Issuing stock is often a vital part of starting a company and tricky to get right,” continued Kehayias. “Properly issued stock establishes founders’ stake in the long-term success of the company, can protect the company’s intellectual property and defines what happens if any of the founders leave. Future investors and employees will also look for industry-standard equity terms when deciding to work with you.”
It isn’t uncommon for companies to spend thousands in legal fees when issuing stock, said the company. It also isn’t uncommon for those companies to spend thousands more to correct mistakes.
To help smooth the process, Stripe has produced a new Stripe Atlas user guide to assist companies looking to issue stock through its software.