Legal Questions

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

0 Votes
3 Answers
1.76K Views
Can I run an IT services company online, without having a physical presence?

I am located in India. I currently have a full time job and due to financial constraints, I need to continue this. I intend to start a firm that will provide Web Development Services. I need to run...

asked Apr 11 '12 at 16:56
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Gentrobot
122 points

0 Votes
3 Answers
3.9K Views
Web startup - possible legal issues with crawling content from other sites

We are building a website which will aggregate listings from various other websites. I would build my website to add extra search filters and other useful tools around this content that the other...

asked Mar 15 '13 at 17:05
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Arahant
116 points

2 Votes
1 Answers
1.33K Views
Closing the sale of a small business without a lawyer?

I have a small ecommerce store which generates a profit ($200K to $300K a year) that someone would like to purchase. The value of the deal isn't huge, it's just 1.5x the yearly multiple. As such,...

asked May 29 '14 at 16:30
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Zachary Masten
12 points

0 Votes
1 Answers
1.26K Views
What to do if a competitor copies your design?

We have a small B2B application and have poured a lot of energy and resources into designing a great user experience. Our closest competitor just "overhauled" their own UX and it's a blatant rip...

asked May 11 '14 at 18:25
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Sheryl Garcia
2 points

0 Votes
1 Answers
1.25K Views
Contract jurisdiction in a different country. Is it a disadvantage?

I have been offered a job that is online based, working entirely from home. I reside in Hong Kong, the company is formed under HK law but the contract states that it will be governed by New York...

asked May 8 '14 at 03:20
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Jeff Brazier
1 point

1 Votes
1 Answers
961 Views
Post a legal letter from a large competitor in order to get publicity?

A larger competitor recently sent us a legal letter asking us to change certain things about our app because it infringes on their app (it doesn't).Is it legal for us to make this letter public on...

asked May 2 '14 at 17:12
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Donald Seymour
6 points

1 Votes
1 Answers
1.28K Views
Can a deal with a VC fall apart after a term sheet has been signed?

Is it possible for a fund raising deal with a venture capitalist to fall apart after a term sheet has been executed?If so, what are some common reasons why deals fall apart at this stage?

asked Apr 29 '14 at 16:56
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Mary Campbell
7 points

3 Votes
4 Answers
3.73K Views
Are NDAs even worth signing for employees? Are they even enforceable?

As an employer, is it even worth getting employees to sign an NDA? Do they provide any significant legal protection (enforceable)?Most startups don't even have the resources to pursue a legal...

asked Apr 16 '14 at 18:26
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Jason Wood
17 points

2 Votes
2 Answers
1.69K Views
Obtaining new EIN after changing status of DBA

I was doing business under a DBA, then I became incorporated. When I incorporated, I applied for a new EIN - and got one. I have since closed that corporation and now again doing business as a...

asked Mar 9 '12 at 07:09
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Ame
11 points

1 Votes
1 Answers
897 Views
Who own's a franchise's social media account? The parent company or the franchise owner?

Let's say that I start a McDonald's franchise and create social media accounts for my specific location to engage with my customers.Who would own those social media accounts? I, as a the franchise...

asked Apr 17 '14 at 17:57
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Mildred Miller
7 points

0 Votes
1 Answers
1.3K Views
Why incorporate in Delaware and not your home state?

What are the specific reasons to incorporate your company in Delaware instead of the state you reside in? Almost everyone states that Delaware is the primary choice for businesses.What are some...

asked Apr 11 '14 at 16:29
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Austin Fermin
32 points

1 Votes
2 Answers
862 Views
Is it legal to start a cookies company out of your apartment?

I have little funds to start a business (rent space, etc). I have an idea for a cookies company for a very specific target audience: Paleo-friendly cookies made without carbs.Would it be legal for...

asked Apr 10 '14 at 13:42
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Julia Dardar
6 points

1 Votes
2 Answers
2.07K Views
Signing contacts with overseas vendor: which country's laws would govern the contract?

I'm confused on how contracts with overseas vendors would work in the event there is a dispute.Lets assume I'm working with a development vendor in India. We have a contract and they decide to not...

asked Apr 8 '14 at 22:57
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Gordon Hughes
7 points

1 Votes
2 Answers
955 Views
I own a domain extension of a publicly traded company. Could I sell it?

I registered a .us extension of a startup which is now public on Nasdaq.Is it legal for me to sell the domain name on a marketplace like Flippa or Godaddy Auctions?P.S. My intention wasn't to be a...

asked Apr 3 '14 at 22:12
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Vivian Sims
7 points

0 Votes
3 Answers
2.91K Views
Is sending a monthly invoice required if you're a SaaS company?

If you're a SaaS company in the United States, is it required by law to send a monthly invoice to subscribers?We haven't built out this feature and wondering if we can push it lower in the priority...

asked Mar 25 '14 at 21:46
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James Charles
35 points

1 Votes
2 Answers
1.58K Views
Which state to incorporate in if I plan to raise money eventually? Should it be LLC, S-corp or C-corp?

Which is the best state to incorporate in if you eventually want to finance your startup with angel funding?I currently have an LLC in my state and not sure if it will be optimal. I went with an...

asked Mar 19 '14 at 21:26
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Regina Villalon
70 points

1 Votes
1 Answers
969 Views
Legalities with starting a gambling site that uses Bitcoin?

Since Bitcoins aren't actual currency, would it be legal to start a gambling website where it's the only accepted form of payment?I'm located in the United States.I've done some research and didn't...

asked Mar 18 '14 at 16:42
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Carolyn Luke
10 points

2 Votes
1 Answers
1.1K Views
Should you incorporate a company from the start? Or is it ok to build the MVP first?

My friend and I want to build a startup together and following the lean startup methodology.Should we spend time and money to incorporate the company and get paperwork in order prior to starting...

asked Mar 13 '14 at 13:58
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Carlos Riley
45 points

1 Votes
2 Answers
1.47K Views
Do web-builders reserve rights to websites?

I've been pondering over this one for quite a while now, and after doing some research, nothing appeared to come up. So, my questions is, when you use a website builder like webs, weebly, or other...

asked Dec 4 '13 at 13:23
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Dylan Katz
10 points

2 Votes
2 Answers
2.35K Views
Getting rid of unproductive co-founder?

Lets say you're working on a startup with someone for a couple of months and they start to lose interest and aren't pulling their weight. And it has come to a point where just talking it out isn't...

asked Mar 13 '14 at 19:03
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Anne Vickers
15 points