What are the Legal Steps for Launching a Startup?

Here is a common legal flow for startups just starting out:

– You’ll want to first form your business. Either an LLC, C-Corp or S-Corp for most web startups.

– Prepare a Privacy Policy and Terms of Service / EULA if your business has a website/app. See more: How does a web-based startup usually prepare or write Privacy Policy and Terms of Service?

– Get your post-incorporation documents in order if you ever plan on taking on investors and/or hiring people. This includes stuff like bylaws, initial board consent, restricted stock purchase agreement, confidential information and assignment agreements etc…

– Protect your IP. Decide whether you want to trademark your company name & logo, patent a process, draft NDAs etc. More on that here.

– Create a founders agreement if you plan on bringing or currently have co founders. See more here. 

– If you plan on raising money from investors, decide whether you’ll do a convertible note or equity round. If convertible note, you’ll want an attorney to draft up a convertible promissory note, note purchase agreement, and board consent.

Have more questions? Feel free to visit LawTrades.

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1 Comment

  • Anonymous
    Visitor Rating: 5 Stars
  • Raad Ahmed
    What are the nuances behind a convertible note?

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