Launch Legal Shortcuts

Legal compliance frameworks for bootstrapped founders.

Day 1 Essentials

Business Structure Selection

Structure	Best For	Cost	Protection
Sole Prop	Testing ideas, no liability	Free-$50	None
LLC	Side projects, low revenue	$50-500	Personal assets
S-Corp	$40K+ profit, tax optimization	$200-800	Personal + tax
C-Corp	Raising VC, issuing equity	$300-1000	Maximum

Default recommendation: LLC for most bootstrapped businesses.

Registration Checklist

[ ] Choose business name (check availability)
[ ] Register with state (Secretary of State)
[ ] Get EIN from IRS (free, instant online)
[ ] Open business bank account
[ ] Set up basic accounting (Wave, free)

Minimum Compliance

Requirement	When Needed	DIY Cost
Business license	Most cities	$50-200
DBA/Trade name	If different from LLC	$25-100
Sales tax permit	If selling goods	Free-$50
Home occupation permit	If home-based	$0-100

DIY Legal Resources

Contract Templates

Source	Cost	Quality
LegalZoom templates	Free-$99	Good for basics
Rocket Lawyer	$40/mo	Good coverage
Docracy	Free	Varies
GitHub contracts	Free	Tech-focused

Essential Contracts

1. Client/Service Agreement

   • Scope of work
   • Payment terms
   • Liability limits
   • Termination clause

2. Terms of Service (if web-based)

   • User responsibilities
   • Your disclaimers
   • Dispute resolution

3. Privacy Policy (required by law)

   • Data you collect
   • How you use it
   • User rights

When to Hire a Lawyer

DIY Is Fine

• Standard service agreements
• Basic LLC formation
• Simple contractor agreements
• Website terms/privacy

Get a Lawyer

• Investor agreements (SAFE, equity)
• Partnership agreements
• Employee equity/options
• IP assignments
• Regulated industries
• Custom contracts over $50K

Cost-saving tip: Use templates for 80%, lawyer for 20% review.

Industry-Specific Requirements

Consulting/Services

• Professional liability insurance ($300-1000/yr)
• Client contracts with scope limits
• NDA template for sensitive work

E-commerce

• Sales tax registration (use Avalara or TaxJar)
• Return policy (state-specific requirements)
• Product liability considerations

SaaS/Software

• Terms of service
• Data processing agreements (for B2B)
• Security certifications (SOC 2 if enterprise)

Local Services

• Local business license
• Industry permits (contractors, food, etc.)
• General liability insurance ($400-800/yr)

Insurance Minimum

Type	When Needed	Cost
General Liability	Always	$400-800/yr
Professional Liability	Services/consulting	$500-1500/yr
Product Liability	Physical products	$500-2000/yr
Cyber Insurance	Digital products	$500-1000/yr

Affordable providers: Hiscox, Next Insurance, Thimble (by-project)

Formation Checklist by State

For LLC:

1. File Articles of Organization
2. Create Operating Agreement (template is fine for single-member)
3. Get EIN from IRS
4. Register for state taxes
5. Open business bank account

Cheapest states: Wyoming, Delaware, Nevada (but register where you operate)