Legal Questions

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

1 Votes
2 Answers
2.29K Views
Getting started with an LLC

Two friends and I have run a website for a year or so and now we are about to add in our premium model so we can start bringing in some money. I have been advised that we should register an LLC...

asked Apr 18 '12 at 01:58
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Mike
19 points

1 Votes
2 Answers
2.15K Views
Why is it that after removing any liability, warranties have expressions like "but in any case not more than $1.50"?

If the non-liability works – it works. If not – why would the second part work?

asked Apr 18 '12 at 22:37
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Startup1
90 points

1 Votes
3 Answers
3.72K Views
Can I sell an open source project to my client?

i have one open source project, i want to sell this to my client by making some modification in the existing project. Is it good to sell or is it permissible to sell the open source project to...

asked Apr 19 '12 at 14:33
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Sam
16 points

1 Votes
3 Answers
2.89K Views
Is there such a thing as "legal insurance" available to startups?

As some kind of a follow-up of my previous question about trademark, I am curious to know about legal risks and protection options, particularly in Europe. As far as I can see, one of the greatest...

asked Apr 23 '12 at 17:18
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Yoav Aner
318 points

2 Votes
1 Answers
2.12K Views
What should I watch out for when closing an LLC?

I'm declaring one of my startups kaput and moving on to another. The first venture, Stronico Contact Management, was an llc and had a ten percent partner. We declared it closed by mutual agreement...

asked Apr 25 '12 at 04:32
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Steve French
621 points

2 Votes
2 Answers
2.63K Views
Legal difference between trademark and registered trademark

What are the legal differences between using the two characters ™ and ®? Does using ™ imply the trademark isn't registered and therefore can be used by one?

asked Apr 6 '12 at 15:09
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Ayub
133 points

2 Votes
3 Answers
3.87K Views
Business banking for a California startup incorporated in Delaware

We have an startup that was recently incorporated in Delaware but is based in California. We tried to open a business bank account at two different banks in California, and both said they require a...

asked Apr 6 '12 at 15:18
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Caligirl
204 points

2 Votes
3 Answers
2.44K Views
How do I make sure that my company owns my software?

This seems like a silly question, but I want to make sure that my interests are protected. I own a software development company, LLC in Virginia, and I have a product that I developed and have...

asked Apr 7 '12 at 00:47
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Tim
670 points

3 Votes
2 Answers
4.47K Views
What if the startup I work for gets bought out?

I am the technical founder of the startup that I work for. My software, that I architected, runs on a device that has won a Gold award even before the trade association's show. The startup is...

asked Apr 7 '12 at 02:30
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Someone Somewhere
116 points

2 Votes
3 Answers
2.37K Views
Company location vs state of incorporation vs residency

Okay, I hope someone can answer my question. My husband has a company incorporated in state A, where we used to reside. He is the only officer and only employee. We moved to state B but kept the...

asked Apr 9 '12 at 22:34
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Dcg
11 points

4 Votes
4 Answers
3.55K Views
Should I change my domain name if there is a company with the same name?

I recently registered a co.uk domain name which I was hoping to use as the site for an e-commerce business. After registering I checked companies house and found there is already a registered Ltd....

asked Apr 12 '12 at 00:00
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User20236
133 points

3 Votes
4 Answers
2.87K Views
Partnership Gone Bad

For the past 6 months or so I have been working on a project with 2 partners. Here's the breakdown: Partner 1: Finance, marketing, sales, legal Partner 2: Product dev, design, branding Me: Tech,...

asked Apr 13 '12 at 13:27
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Miles
130 points

1 Votes
1 Answers
2.64K Views
Vesting restricted stock and the 83(b) Election

Is it possible to have a Section 83(b) Election when the only risk of forfeiture of the restricted stock is for unvested shares and there are no repurchase rights for vested shares (ie all vested...

asked Apr 13 '12 at 13:54
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Jj.
29 points

4 Votes
1 Answers
2.77K Views
What is the JOBS Act?

The Senate passed the Jumpstart Our Business Startups Act (JOBS Act) by a vote of 73-26. The Senate added new crowdfunding protections, the House will likely accept them as-is, and the President is...

asked Mar 25 '12 at 07:24
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Zapoo
303 points

3 Votes
3 Answers
3.08K Views
Is there anything special an underage founder/freelancer doing business with startups needs to be aware of?

Since I'm not a legal adult, is there anything special I need to watch out for in terms of startup culture? Technically, I can get out of any legal agreement (since they can't be binding until I'm...

asked Mar 25 '12 at 10:48
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Jrg
247 points

5 Votes
2 Answers
2.63K Views
Having less equity than an investor

Suppose a company (C-Corp, Delaware) with 5 co-founders, each having 20% of the shares. Then an investor wants 30% of the company, which will leave each co-founder diluted to 14%. Besides...

asked Mar 27 '12 at 00:37
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Anon User
62 points

1 Votes
2 Answers
2.23K Views
Contract jurisdiction venue

I'm in the process of closing a somewhat sizable deal with a new client, and the only sticking point with the contract is the choice of jurisdiction. I am located in state A, the client in state...

asked Mar 27 '12 at 04:38
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Josh3736
116 points

0 Votes
2 Answers
2.57K Views
What areas of practice are important for a startup lawyer, and why?

I've seen a number of questions related to finding a startup lawyer, while I've personally met a number of "startup lawyers", each where more just lawyers with domain experience, and don't believe...

asked Mar 28 '12 at 01:18
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Blunders .
899 points

0 Votes
2 Answers
2.51K Views
IP: Maintain property over source code

I have code of mine, developed before joining the company as a co-founder, that I used for the company product (website) but want to retain the copyright and all IP rights to it and to be able to...

asked Apr 1 '12 at 12:32
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Jj.
29 points

1 Votes
1 Answers
2.6K Views
Side projects while being a co-founder and officer of a company

There is already an awesome question and answers on IP and spare time related to employees: If I'm working at a company, do they have intellectual property rights to the stuff I do in my spare...

asked Apr 1 '12 at 14:40
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Jj.
29 points