If you’re thinking of starting a business, you’ll need to know what the legal requirements are, what your liability is, and how to navigate your options to get what you want in the end.Here are seven things you need to know about startup legal terms and issues.
Startup's Legal Entity
You need to register your startup as a sole proprietorship, partnership or LLP, or corporation.
Shareholders' Agreement
An SHA is a set of agreements outlining the rights and responsibilities of shareholders within a startup.
Intellectual property right
You need to protect your intellectual property like a patent, copyright, trademark, or trade secret.
Employment contract
Employment contracts are legally binding documents that outline the terms of an employee’s relationship with their employer.
Term Sheet
A term sheet is signed when an investor (angel investor or a VC) wants to invest in your company. It outlines the terms of the investment and is signed by all parties involved.
Non-Disclosure Agreement
This is a legally binding document outlining how signing parties agree to keep certain things confidential.
Non-compete agreement
A non-compete agreement outlines what the cofounder or an employee can do for the business once they leave.