Legal Questions

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

1 Votes
1 Answers
1.64K 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
2.25K 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
1.8K 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

0 Votes
1 Answers
1.72K 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
2 Answers
3.4K 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

1 Votes
0 Answers
2.94K Views
Does the Delaware LLC need a resale license to sell online to customers in other states of America?

Hello, Need an advice. We are foreigners who have registered an LLC company in Delaware and we do have EIN. We are planning to do an e-commerce business in USA (online shop) with the help of...

asked Mar 12 '15 at 09:23
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Taty
6 points

12 Votes
2 Answers
3.68K Views
What happens when a UK company infringes a US patent?

I'm a one man startup with a high price, low volume, niche software product that I'm considering selling in the US. However, I'm concerned that it may infringe a US patent without me knowing...

asked Mar 14 '11 at 18:14
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Steven F
66 points

0 Votes
3 Answers
2.02K 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
4.23K 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
1.66K 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
1.53K 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
1.57K 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
1.2K 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
1.56K 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
4.1K 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
2K 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
1.12K 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
1.57K 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
1.08K 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
2.6K 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