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Most Recent Questions in Legal Basics For Startups

Product Specific Accessories

Generally, any time you develop a product that is made to "work with" another--especially a wildly popular one--you need to work out some form of license arrangement. In the license... (more)

Can two DBAs be under one LLC?

An LLC can certainly operate under more than one DBA. But you’re right, it could become an accounting nightmare, even if you are absolutely meticulous about how you categorize income and expenses.... (more)

How do I resign from a corporation based in Texas?

The simplest way to resign from a corporation (in any state) is to submit a letter of resignation, addressed to the president of the corporation or, if that’s you, to the next highest officer.... (more)

I am about to start a restaurant with my partner, and he will run the day-to-day operations.

This is a very thorny situation. If you're independently wealthy and this business is more of a fun hobby for you, whereas it’s your partner's livelihood and sole means of supporting his family, I... (more)

What kind of license do I need and what protective steps should I take to start a home-care business?

By home-care business, its not clear whether you mean hospice care, non-medical home care, child day care, or something else.  Each one involves its own licensing and regulations which vary... (more)

How do I get homeowners' coverage and coverage for my home-based business?

Even though you are running a business out of your home, homeowners' insurance generally does not cover those activities.  If you have been trying to cover both kinds of activities (personal... (more)

Is workers' compensation required for my small family business?

Generally, you need to have workers' compensation coverage for any employee you hire, even if it's just one employee or just temporary employment. However, a number of states have exemptions for... (more)

Are printed fabrics and textiles copyrighted?

Fabrics and textiles are subject to copyright protection. However, before you purchase any fabrics from wholesalers, the wholesalers have (or should have) purchased the design rights from the... (more)

Can a franchisee sue a franchisor for misrepresentaton?

Franchises have been known to have a checkered past, which is why they involve regulation and disclosure documents. So, you <EM>can</EM> bring a lawsuit against a franchisor for... (more)

Is a PPM imperative when raising a $1 million equity offering?

Whether you draft a PPM or have an attorney do so, PPMs are an integral part of the process of raising capital (in the numbers you are seeking) and essential to ensuring that you do not need to... (more)

Are there limitations when signing an NDA from a company that is interested in buying me out?

Generally, an NDA does not prevent you from sharing your confidential information with others--only the confidential information of the other party. Where you want to be careful with an NDA is in... (more)

If my name isn't on the filing, can I get screwed?

Whether you can be "screwed" or not depends on the form of business that you have. If you have a corporation (you did refer to "shares"), many states do not require that the... (more)

What permits or licenses do I need to open a branch in another state?

If you plan to set up operations in another state, you will need to either form a totally new business entity in that state or "qualify" as a foreign (that is, out-of-state) entity to do... (more)

Should I obtain insurance for a small home based baking business?

Here's my question to you: If someone did get sick from your product and won a lawsuit for $250,000, could you afford to pay the legal fees and judgment? If the answer is no, get insurance.... (more)

Do teens starting a small after-school business have to have a license or register their business?

Teens starting a business have all of the same legal issues as adults starting a business--and then some. They need to form a business entity, meet licensing requirements (depending on the... (more)

How do I legally resign from a corporation?

As long as you have made it clear that you have severed your ties with the corporation, you should not be held responsible for tax liabilities or debts of the corporation that might accrue from... (more)

How do I terminate a commercial lease?

Generally, you do not have the right to terminate your lease simply because a nearby tenant happens to be encroaching on your business. Unless the terms of the lease state that the landlord will... (more)

Can a non-paid board member also be a subcontractor for the same LLC?

Whether a non-paid board member can be a subcontractor for the LLC or not depends on the terms of any operating agreements or "board by-laws" that you may have in place. You want your... (more)

Do I need permission to post celebrity pictures online for my salon's new website?

The short answer is yes. You need permission. Even if you see all sorts of stuff being taken and used on the internet. Even if it can't be policed properly, that doesn't make it right. It's... (more)

Why is it wrong to accept gifts from vendors?

Part of the problem with accepting gifts from vendors is that it can hamper your objectivity when either making purchasing decisions for your company or recommending products or services to... (more)
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