Startup Center

The best legal structure depends on your goals, funding plans, and risk tolerance. LLCs and corporations offer different benefits when it comes to liability protection, taxes, and raising capital. Choosing the right one early on can save time, money, and future complications. A thoughtful legal strategy here lays the foundation for growth.

You should use a Non-Disclosure Agreement (NDA) whenever you share sensitive information with partners, employees, or contractors. However, many investors—especially venture capitalists—won’t sign NDAs as a matter of policy. In those cases, protecting your idea means focusing on establishing a strong business execution, clear IP ownership, and carefully controlling what you disclose. A well-structured company and thoughtful legal protections can go a long way.

Registering a trademark starts with a clearance search to make sure your brand name or logo isn’t already in use - which we recommend doing before establishing your entity and undergoing any form of marketing. Then, you file an application with the U.S. Patent and Trademark Office (USPTO), describing the mark and how it’s used in business. The process will take about 8 months at a minimum and involves strict legal requirements—getting it right the first time helps avoid costly delays or rejections. There is no way to expedite this process, so it is important to get this started early.

A strong founder or partnership agreement should cover equity ownership, roles and responsibilities, decision-making, compensation, dispute resolution, and what happens if someone leaves the business for any reason. Addressing these issues early helps prevent conflict down the road—and protects the company as it grows. It is always better to work through this topic at the beginning of a relationship when the parties are friendly than when a dispute arises.

To prepare for fundraising, you need more than just a pitch—investors will expect a clean legal and financial foundation. That means having key documents ready in a well-organized data room: formation documents, cap table, contracts, IP assignments, NDAs, board consents, and prior financing records. When your house is in order, it builds investor confidence and speeds up due diligence.

Common legal mistakes startups make include waiting too long to form an entity, skipping founder agreements, neglecting IP protection, using poorly drafted contracts, and ignoring securities laws when raising funds. These oversights can lead to costly disputes or missed opportunities. Setting things up right from the start helps avoid legal fire drills later.

To protect your intellectual property when working with contractors, use clear contracts that include work-for-hire, IP assignment, and confidentiality clauses. These ensure anything created for your business—code, designs, content—legally belongs to you. Without these protections, you risk losing ownership of key assets, even if you paid for them.

A merger or acquisition typically begins with initial discussions and a term sheet outlining the basic deal terms. From there, the parties enter due diligence, where the buyer reviews the target’s financials, contracts, intellectual property, and legal risks. Next comes negotiating the purchase agreement, which finalizes the structure, price, and key obligations of both sides. Regulatory or third-party approvals may be needed before the deal can close. Once everything is in place, the transaction is finalized through signed agreements and asset or equity transfers. After closing, the focus shifts to integrating teams, operations, and systems. Each phase involves complex legal considerations—proper guidance can make the difference between a smooth deal and a costly setback.

You should update your company’s privacy policy whenever you change how you collect, use, or share personal information—such as launching a new product, adding analytics tools, or expanding into new markets. Laws like GDPR and CCPA also require updates to stay compliant. Keeping your policy current isn’t just a legal formality—it builds trust with your customers and protects your business.

You can reduce legal risks in employment agreements by clearly outlining roles, compensation, termination terms, confidentiality obligations, and ownership of work product. Including enforceable non-solicitation or non-compete clauses (where allowed) can also help protect your business. Tailored, up-to-date agreements help prevent disputes and ensure compliance with evolving employment laws.

Before signing a commercial lease, your startup should review key terms like rent increases, personal guarantees, maintenance responsibilities, and exit options. Understand what you're committing to—many leases lock you in for years. Negotiating the right protections up front can save your business money and flexibility as it grows.

SAFEs (Simple Agreements for Future Equity) and convertible notes are tools startups use to raise early funding without setting a valuation right away. Both allow investors to convert their investment into equity later—typically when the company raises a priced round. SAFEs are simpler and don’t accrue interest, while convertible notes function like loans with interest and maturity dates. Structuring them correctly is key to avoiding surprises when it’s time to issue shares.

You should involve a lawyer early in business negotiations—especially when discussing ownership, intellectual property, funding, or long-term commitments. Attorneys bring not only legal insight but also the experience to spot risks and think through issues you may not anticipate. They help structure deals that protect your interests and avoid problems down the road. A good lawyer doesn’t slow the deal—they make sure it’s worth doing.

Qualified Small Business Stock (QSBS) can offer major tax benefits—most notably, the potential to exclude up to 100% of capital gains on the sale of the stock if certain conditions are met. To qualify, the company must be a C-corp, have less than $50 million in assets at the time of issuance, and operate an active business. The stock must be held for at least five years, and it must be acquired directly from the company. Structuring your startup to qualify for QSBS early can lead to significant tax savings down the line.

Disputes with partners or clients are best addressed early—ideally through well-drafted contracts that include clear dispute resolution clauses, such as mediation or arbitration, to avoid costly litigation. When conflicts do escalate, having the right attorney can make all the difference in protecting your interests. It's also wise to carry insurance, like Directors & Officers (D&O) coverage and general liability policies, which can help cover legal costs and reduce financial exposure. Being proactive with legal planning is your best defense when disputes arise.