startup legal issues

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Chester/Associates, PLLC Business - Trademark - International Legal Issues for Business Start-Ups Jim Chester Jim Chester JD, LL.M, CHB, CCS Chester/Associates, PLLC Dallas, Texas Presented by:

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Page 1: Startup Legal Issues

Chester/Associates, PLLCBusiness - Trademark - International

Legal Issues forBusiness Start-Ups

Jim ChesterJim ChesterJD, LL.M, CHB, CCS

Chester/Associates, PLLCDallas, Texas

Presented by:

Page 2: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Four Key Legal Topics to Address1. Address Legal Restrictions/Limits2. Select Entity Type3. Protect Intellectual Capital4. Develop Basic Legal Documents

Start-Up is a Vital Time to Consider Legal IssuesStart-Up is a Vital Time to Consider Legal Issues

Page 3: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Address Legal Restrictions/LimitsAddress Legal Restrictions/LimitsGovernment/Regulatory

- Permits- Zoning- Licenses

Private- Non-compete Agreements

Page 4: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Sole-Proprietorship

Pros - Easy/cheap to start

Tax advantages

Management flexibility

Cons - No limit of liability

Lack of continuity/transferability

Limits ability to raise capital

NOTE: Must register a d/b/a (assumed name) if not using yourlegal name

Select Entity TypeSelect Entity Type

Page 5: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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General Partnership

Pros - Easy/cheap to start

Tax advantages

Management flexibility

Cons - No limit of liability (for partner, too)

Lack of continuity/transferability

Limits ability to raise capital

NOTE: Must register a d/b/a (assumed name) if not using yourlegal name

Select Entity TypeSelect Entity Type

Page 6: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Limited Liability Company

Pros - Limited Liability

Some tax advantages

Continuity/transferability

Greater ability to raise capital

Management flexibility

Cons - Some formality/expense required

Subject to Texas Margin tax

Select Entity TypeSelect Entity Type

Page 7: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Corporation

Pros - Limited Liability

Continuity/transferability

Greater ability to raise capital

Cons - More formality/expense required

Subject to Texas Margin tax

Management flexibility more limited

Tax advantages require additional filings

Select Entity TypeSelect Entity Type

Page 8: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Intellectual Property (IP) Includes:Trademarks / Trade Names / Trade Dress

- Searches & RegistrationCopyrights

- Searches & RegistrationPatents

- Registration RequiredTrade Secrets

- No Registration Required- Non-Disclosure/Non-Competes

Protect Intellectual CapitalProtect Intellectual Capital

Page 9: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Common Forms You May Need:- Purchase/Services Agreement- Terms & Conditions- Employment/IC Agreements- IP-related agreements- Employment Manual

Develop Basic Legal DocumentsDevelop Basic Legal Documents

Page 10: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Start-ups must budget for legal expenses

Failure to adequately address legal issuesinitially can cause significant problemslater.

ConclusionConclusion

Page 11: Startup Legal Issues

March 28, 2008

Chester/Associates, PLLCBusiness - Trademark - International

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Questions?Questions?Email [email protected]

Direct 214.800.2845

Toll Free 1.877.34.World

Chester/Associates, PLLC6060 NCX, Suite 560Dallas, Texas 75206

www.tradelawfirm.com