Legal Questions

Essential legal issues that startups face, including corporate formation, fundraising documentation, founders stock, and board relations.

0 Votes
0 Answers
67 Views
Do Employees need to sign an NDA?

I work at an engineering firm. I recently was on a job site talking to a project planner. The are creating a propriety process for an Item that they have invented. The project planner said that he...

asked Apr 22 '17 at 03:02
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Ben Wolf
1 point

2 Votes
2 Answers
1.28K Views
How do I get rid of my business partner?

Recently it came to my attention that my business partner (50/50 LLC in CA, no partnership agreement) has been using the company account as a line of credit for himself. In the past 13 months he...

asked Jan 18 '17 at 21:01
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sbg
11 points

2 Votes
1 Answers
1.31K Views
Do I have to pay royalties to YouTube videos I link to?

I am working on an ebook with lots of links to youtube videos from other people. If I charge for the ebook am I required to pay royalties on the videos?

asked Dec 22 '16 at 16:09
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Corrective Coach
11 points

1 Votes
2 Answers
6.02K Views
Can I deposit money into my LLC for start up costs or does it have to be a "loan"

I have heard it is necessary for any money transferred into an LLC for start up costs has to be a loan. Does that mean I can't just put my own money into it?

asked Aug 6 '16 at 18:14
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Kelli Mcmullen
6 points

1 Votes
0 Answers
1.45K Views
Storing analytics data in browser local storage. Is it illegal?

I have heard that KissMetrics used Flash Cookies and faced a lot of legal issues. I am talking about the new HTML5 local storage. Data stored in local storage has no expiration. It means that if...

asked Jul 28 '16 at 02:01
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Mohit Gangrade
6 points

3 Votes
3 Answers
2.08K Views
Is it legal to pay employees or contractors in bitcoin (artificial e-currency)?

I am from central Europe, and there is really HUGE taxation (about 0,44 on wages, 0,2 on goods, so about 55pct goes to taxation black hole). I got idea - is it useful scenario to pay my employees...

asked Mar 26 '12 at 00:14
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Joseph
21 points

3 Votes
1 Answers
1.83K Views
Does a single-member LLC provide the same asset protection as an LLC with many partners?

I'm bootstrapping my startup and don't have any plans on raising money. As such, I've decided to keep accounting simple by going with a single-member LLC.What's not clear is if it would provide the...

asked Jun 4 '14 at 18:43
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Carlton Smeltzer
17 points

3 Votes
1 Answers
1.2K Views
If your co-founder suddenly leaves before the MVP is complete, could he have a legal claim down the line?

If there was no paperwork done between the co-founders and one of them decides to leave all of a sudden, can the remaining co-founder still continue building that business?Could the founder who...

asked Jun 13 '14 at 16:56
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Omar Gonzalez
16 points

2 Votes
1 Answers
727 Views
Are vested shares the best way to go for a startup company to bring on new people?

We have a Hong Kong company and are trying to launch. We have limited funds but are thinking of hiring someone and paying in shares. However, we don't want to just sell shares and watch our new...

asked Jun 17 '14 at 09:16
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User33966
11 points

1 Votes
2 Answers
899 Views
Starting a business with a co-founder without a corporation?

Could you start a company with a co-founder, and have generic agreements in place, all without registering a corporation?We're bootstrapping our first startup and don't want to spend both money and...

asked Jun 18 '14 at 20:12
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Marion Woodward
9 points

2 Votes
1 Answers
925 Views
Low cost way of filing a patent?

Is there an inexpensive way of filing a patent? We talked to a couple of lawyers and the cost to file a patent is hovering around the $20K range. Is that normal? It seemed absurd at first, until...

asked Jun 20 '14 at 14:42
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Gary Russell
12 points

1 Votes
2 Answers
676 Views
Can you avoid paying taxes by not living in any one country for more than 2 months?

This question might seem more negative than it is...I'm looking to travel the world and build my startup on-the-go. Would I need to pay income tax in any country if I don't stay in a country for...

asked Jul 1 '14 at 14:28
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Willie Hudson
6 points

1 Votes
1 Answers
492 Views
Competitors using similar words in their offerings

So my business is called The Hot Wafel (Wafel is spelled like this in Europe).A competitor is using the words "Hot Waffles" to describe what he offers to the public. Is their potential conflict...

asked Jul 7 '14 at 00:53
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Rick Unuia
6 points

0 Votes
1 Answers
648 Views
What does the term "nonrecourse deduction" mean?

What does the term: nonrecourse deduction(s) mean?In legal documents I have seen the term nonrecourse deduction(s) used as it pertains to taxation and other economic factors. It is not clear to me...

asked Jul 9 '14 at 14:14
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Sean Quinn
1 point

1 Votes
1 Answers
571 Views
Does incorporating your startup in another country for tax benefits negatively affect being able to raise money from VCs?

If we were to incorporate our company in another company (where one of our co-founder lives), would that seriously limit our ability to raise money from venture capital firms?The primary benefit to...

asked Jul 10 '14 at 20:14
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Ronald Whittaker
7 points

1 Votes
2 Answers
689 Views
Do VCs look into possible patent infringement when doing their due diligence?

When venture capital firms do their due diligence on startups, do they look at possible patents that the startup is infringing on?If so, that seems like a very costly thing to do (legal resources)....

asked Jul 11 '14 at 14:18
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Jennifer Black
6 points

0 Votes
1 Answers
794 Views
Is product liability insurance needed if we're loading new software onto a tablet and selling it?

The advice I have found so far indicates that you need product liability insurance if you "make a change" to a product (even if you are not the original manufacturer). Is adding software is a...

asked Jul 11 '14 at 16:17
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User34062
6 points

2 Votes
1 Answers
577 Views
If a startup fails, who gets to keep the domain name?

If a seed-funded startup fails and has a domain name with no real SEO value, who gets to keep ownership of the domain name after the company is dissolved?

asked Jul 14 '14 at 23:27
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Mark Holifield
12 points

1 Votes
1 Answers
1.05K Views
How can an international student be an owner of 50% equity of a start-up?

Me and my American friend have planned for a startup. He will take care of sales and marketing while I will handle the technical and development side. As I am in USA on an F1 Visa, what would be...

asked Jul 15 '14 at 14:39
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Kamrul Islam
6 points

2 Votes
2 Answers
1.55K Views
My employee agreement doesn't allow me to work on side projects, how can I start a company?

Under my agreement with my current employer, they retain ownership of everything that I create, both at work and side projects (the legal wording is very lose on this, and I guess it's like that...

asked Jul 17 '14 at 18:29
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Cristina Rath
12 points