Founders and Developers: What's Your #1 Legal Headache?
Li Huanzhi
14 replies
Hello everyone! We're the developers behind ai.legalnow.xyz.
We're on a mission to tackle the legal issues that trouble you the most.
Whether you're stuck with unsolvable problems, grappling with sky-high attorney fees, or frustrated with bureaucratic inefficiencies, let's explore how we can lend a hand to everyone!
Share your challenges with us and let's find solutions together.
Replies
André J@sentry_co
Startups has more accounting issues IMO. Optimising accounting is hard. Leaves out a lot money on the table just because you dont have time to chase it, on top of everything else that has your focus. Later stages, legal is more relevant. Hiring, contracts, investor agreements, negotiations etc etc
Share
@masterlhz Yepp. Post seed companies has tonnes of legal issues. Pre-seed has accounting issues mostly.
@sentry_co Thank you André! "Later stage startups", good point!
AI policies!
@drewsalesplaybookbuilder Haha. Definitely!
@masterlhz Thanks, will def try it!
Pythia World
Hey there! You are building the exciting product!
For me legal problems are tightly connected with strategic questions. Like incorporating - there are so many questions about choosing jurisdiction and choosing the counterpart. Or building terms of use and privacy policy - do the doc builders like termy or termsfeed actually reduce the risks? For AI startups - I am not sure. On which legal risks at which stage of startup development and growth should we even think about?
As founders we are not legal experts (in most cases), which makes our engagement with legal - reactive. And I want to understand risks proactively and make informed decisions before facing the legal problem.
@natella_nuralieva Hi Natella, thanks for your message.
For startups, incorporation is evidently a primary concern, especially when you're presented with numerous options such as Partnership, C Corp, S Corp, offshore entity, DAO, or foundation (particularly if you're venturing into web3). The 'right' structure is often relative and is determined based on the specifics of the startup, supplemented with experienced judgment. The optimal route is, of course, to engage top-tier attorneys and registered agents (assuming they are reliable). However, this approach can be expensive. Solutions like LegalZoom, Doola, and Clerk offer cost-effective alternatives, but they do demand a significant degree of self-research from the entrepreneur. Perhaps incorporating AI consultancy, which can guide you through DIY registration much like an attorney would, might be a beneficial approach.
Regarding the Terms of Use and Privacy Policy, these documents are typically modular in nature, with the vast majority of their provisions being standardized. I just tried out TermsFeed and found their offerings to be commendable, particularly in terms of mitigating risks. It might be advantageous to pair this with LegalNow, with us helping you in quickly understanding the clauses of the Terms of Use and Privacy Policy.
Other risks to consider, aside from regulatory risks (for web3 projects for example) and potential industry-specific risks (like collective lawsuits against AI company), the most common challenges I've observed revolve around disputes between founders or with employees. Properly managing equity structure, founder agreements, and employment contracts can mitigate these concerns.
Thanks again. Should you have any legal inquiries or require attorney recommendations anywhere in the world, please do not hesitate to reach out to me.
Pythia World
@masterlhz thank you so much for such a detailed response, a lot of valuable thoughts!
Hey! For me, It will be terms of use, choosing the right company structure and also accidental copyright infringement
@masterlhz Hey our legals are settled for now. But I'll take a look of course :) Thank you
@dailyfitnessai Give LegalNow a try; it can assist you in quickly crafting a Terms of Use!
We're also considering adding company registration and corporate structure consultation services.
As for solutions related to intellectual property infringement, have you come across any good products in the market?