Prevent The 5 Most Common Legal Pitfalls That Startups Can Avoid

Prevent The 5 Most Common Legal Pitfalls That Startups Can Avoid

Growing a tech company is hard.

Growing a tech company with lawsuits being thrown at you left and right is nearly impossible.

The good news is, most legal issues that startups face are HIGHLY preventable, and can be sidestepped with just a few simple measures.

In this week’s video, I share the 5 biggest legal issues that startups face… and more importantly,  how to avoid them so that you can grow your company with peace of mind.

(Disclaimer: I’m not a lawyer and I don’t play one on the internet. Consult with an attorney before making any legal decisions)

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At a high level, the 5 biggest startup legal issues are:

  1. Wrong entity
  2. IP Ownership
  3. Not setting up vesting
  4. Not complying with security laws
  5. Not doing due diligence

Remember those twins from The Social Network?

The ones who walked away with over 100M of Zucks’ cash over IP infringement?

Well, Zucks probably could’ve avoided that one had he juuuuuust taken a few of the simple measures I mention in #2.

Even if you’re not building a billion dollar social network, chances are that IP assignments play a huge role in your tech company.

Making sure that ownership is properly assigned can save you from major headaches and lawsuits down the line… especially if you hope to raise capital or exit your company.

Take a few mins to watch the full episode, and then let me know of any hard-earned legal lessons you’ve learned in your own journey.


  • Julie Gordon White, B/Coach

    Priceless!!!! Thanks Dan!

  • jscomino

    One thing to note is that the IRS only requires you to file a tax return after net earnings of $400 or more.
    I know it sounds like a miserably small amount but it’ll save you the paperwork of opening & closing entities before earning a red cent.

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