Business Law Day 2
Startup Dynamics and Entity Selection
Roles in a Company
Distinction between investors and employees
Contribution of equity capital without working in the company
Separate legal and contractual questions
Governance by Contracts
Importance of early-stage agreements to prevent disputes
Examples:
Liquidation scenarios
Investor claims back funding if business fails
Success scenarios
Claim of a third of the company if worth
Entity Selection and Taxation
Business entities examined (LLCs, partnerships)
Legal and tax implications
Asset Separation
Separation of personal and business assets
Function of specific business entities
Operational Contracts and Resource Management
Third-Party Providers
Use of outside specialists (HR, payroll) via contracts
Acquiring Equipment
Decisions between buying or leasing
Financial, accounting, and taxation treatments
Contractual Rules for Different Transactions
Distinct sets of rules based on contract subject:
Transactions in goods (Uniform Commercial Code)
Services and real estate (different rules)
Advertising and Marketing
Legal issues (civil misrepresentation, criminal fraud)
Types of legal oversight:
Torts (civil wrongs)
Regulatory Law (FTC oversight)
Intellectual Property (IP) Protection
Copyright
Protection of creative works (books, music)
Trademark
Trade names, labels, logos
Patent
Protection of new, useful devices/creations
Trade Secrets
Information shared on a