Launching a startup requires several key legal steps to protect your business, ensure compliance, and minimize risks. Here’s a checklist of the most important legal actions:

1. Choose a Business Structure

Selecting the right legal entity affects taxes, liability, and funding options:

• Sole Proprietorship – Simple, but no liability protection.
• LLC (Limited Liability Company) – Protects personal assets, flexible taxation.
• Corporation (C-Corp, S-Corp) – Best for startups seeking investors or scaling quickly.

2. Register Your Business

• File with your state’s business registry (e.g., Secretary of State).
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
• Register a DBA (Doing Business As) if operating under a different name.

3. Protect Your Intellectual Property (IP)

• Trademarks – Secure your brand name, logo, and slogans.
• Patents – Protect inventions, unique processes, or technology.
• Copyrights – Safeguard original content, software, or designs.
• NDAs (Non-Disclosure Agreements) – Prevent employees, partners, and vendors from misusing sensitive information.

4. Draft Key Legal Agreements

• Co-Founder Agreement – Defines roles, equity splits, and exit strategies.
• Operating Agreement (for LLCs) or Bylaws (for Corporations) – Outlines business structure and decision-making processes.
• Employment & Contractor Agreements – Clearly define terms, compensation, and confidentiality.
• Terms of Service & Privacy Policy – Required for online businesses to comply with data protection laws (e.g., GDPR, CCPA).

5. Obtain Necessary Licenses & Permits

• Check federal, state, and local regulations for business licensing.
• Industry-specific permits (e.g., food handling, medical compliance).

6. Set Up Business Banking & Finances

• Open a separate business bank account to maintain financial separation.
• Get a business credit card and accounting software (e.g., QuickBooks).
• Understand tax obligations (income tax, sales tax, payroll tax).

7. Ensure Compliance with Employment Laws

• Follow labor laws for hiring, wages, and workplace policies.
• Get the required insurance (workers’ comp, liability, product liability).

8. Prepare for Fundraising & Investors

• SAFE notes or convertible notes – Common funding structures for startups.
• Cap table management – Keep track of equity ownership.
• Due diligence readiness – Have financial and legal documents in order for investors.