This webinar features 7 simple steps startups can follow to legally bulletproof your business! Visit rocketlawyer.com for more information and to get started today.

1. 7 Ways
To Legally Bulletproof Your Startup

2. Connect With Us
@Charleymooreesq
@rocketlawyer
#bulletproofyourbiz
/charleymoore.esq
/rocketlawyer

3. Headlines
Is Silicon Valley as we Know it Dead?
Is it worth it? Startups fight back
as patent wars intensify

4. 7 Ways to Legally Bullet Proof Your
Startup
1. Build on the Right
Foundation
2. Comply with the Law
3. Protect What’s Yours
4. Be a Smart Employer
5. Maintain Enough Insurance
6. Record Everything in
Writing
7. Keep Good Counsel

5. 1. The Right Foundation
1.
Whether you’re
forming an LLC or
a Corporation,
building on a solid
foundation is the
first thing every
company should
do.

6. Business Entities
 Sole Proprietorship
 Partnership
 LLC
 Corporations (S Corps
and C Corps)

7. Things to Consider
 Liability protection
 Reinforce your business
name
 Establish greater
legitimacy
 Perpetual Existence
 Tax Planning

8. 2. Comply with the Law
2.
Keeping your
company in
good legal
standing is
dependent on
staying
compliant

9. Keep Records
 Written proof helps
you resolve disputes
 Your good standing
can be revoked if
you don’t have
accurate records

10. Learn more and get started
Visit our Corporate Compliance Center to:
 Create an operating
agreement
 Organize your
company records
Visit http://www.rocketlawyer.com/center/corporate-
compliance.rl
09/25/12 10

11. 3. Protect What’s Yours
3.
IP protects your
valuable assets and
defends against
competitors

12. 3. The IP Basics
1. Trade Secrets
2. Trademarks
3. Copyrights
4. Patents

13. Trade Secrets
3 Components of Trade Secrets:
1. Information
2. Reasonable measures taken to protect the
information
3. Independent economic value
Protect your trade secrets with a non-
disclosure agreement

14. Trademarks
Trademark registration allows you to:
 Notify the public of your
claim
 Take legal action against
infringers
 Use the registration to
get further registration in
other countries
 List your mark in the U.S.
Patent and Trademark
Office database
14

15. Protecting Your Copyright
A copyright notice is a good
idea because it:
 Provides notice to others
that you claim copyright
protection
in your work and contact
information.
 Prevents accused copiers
from arguing that their acts
of copying were innocent
mistakes.

16. Patents
 Patents guarantee
exclusive rights to the
inventor, in exchange for
public disclosure of the
invention
 The new “First to File”
system means it’s
important to file as soon
as possible

17. Why Start with a Provisional
Patent?
 Cheaper and easier than a full patent
 Can use "Patent Pending" notice on your
invention to deter others from copying your
invention for up to a year
 Establish an earlier patent filing date for your
non-provisional application.
09/25/12 17

18. Protecting IP with Employees and
Contractors
There are two important documents you
need:
1. A Confidentiality Agreement can help
prevent your employees from divulging
trade secrets.
2. An Invention Agreement specifies that
the employer owns all inventions
created by the employee.

19. Get Help with IP
Visit our Intellectual Property Center to:
 Register your trademark
 Apply for a provisional
patent
 Send infringement
letters
 Create confidentiality
and invention
agreements
Connect with an IP
Visit http://www.rocketlawyer.com/center/intellectual-
lawyer
property.rl
09/25/12 19

20. 4. Be a Smart Employer
4.
Your employees
can be your
greatest
advantage or
your costliest
challenge, if
you’re not
prepared

21. Employee or Independent
Contractor?
Employee Contractor
 Hired for an  Generally hired for a
extended period of specific time-frame
time or project
 Generally get  They are part of a
benefits separate,
 Hiring an employee independent
is a big decision. business
Make sure you can  Hiring a contractor
see the employee for a single job can
providing be much smarter
long-term, tangible than hiring the
gains individual as an

22. Best Practices
 Employment Agreements
 Independent Contractor
Agreements
 Employee Handbook
 Non-Disclosure Agreements
 Arbitration Agreements

23. Terminating an Employee
Be careful and do it right
 Think about issuing an employee warning
letter first
 Give your employee a chance to resign
 The final straw: issue a termination letter
 Be sure to keep copies of letters for your
own records.

24. 5. Maintain Enough Insurance
5.
Unforeseen
circumstances can
torpedo your
startup. Get a
Defense. Get
Insured.

25. Choose the Right Insurance
Types of Coverage:
 General liability coverage
 Umbrella coverage
 Professional liability coverage
 Employment practice liability
insurance

26. Learn more and get started
Visit our Insurance Center to:
 Select the right coverage
for your business
 Select coverage for your
family
 Connect with an attorney
if you need help
Visit http://www.rocketlawyer.com/insurance-
center.aspx
09/25/12 26

27. 6. Record EVERYTHING in Writing
6
. Get
ironclad
with
written
contracts

28. Understand and Negotiate
 Read everything before you sign. Don’t
be afraid to seek legal advice if you’re
unsure.
 It’s your job to negotiate. If you don’t
know how, hire someone to act on your
behalf.

29. How to Get Everything in Writing
Get the documents you need for your
business
 General contract for services
 Contract amendment
 Partnership agreement
 Consulting agreement
 Independent contractor agreement
http://www.rocketlawyer.com/center/business-
contracts.rl
09/25/12 29

30. 7. Keep Good Counsel
7.
A good business
attorney can be the
difference between
success and failure

31. Know what you know
Educate yourself
 Not every matter requires the work or counsel of
a professional
 Knowing more about the issue will make the work
faster and ultimately, less costly
 Don’t be afraid to re-use contracts or
agreements: You don’t need an attorney to look
over your Employment Agreement each time you
hire another employee

32. Know what you don’t know
An attorney can help
you:
 Strategize
 Plan for growth
 Make sure you are
protected
for worse case
scenarios

33. Situations That Require an
Attorney
 When someone sues you or you need to sue
someone else
 Criminal matters
 Negotiating large contracts
 Negotiating the sale of your company or the
acquisition of another company or its assets
 Employee actions and suits
 Government audits and investigations

34. Get started today
Legally Bulletproof Your Startup By:
1. Building on the Right
Foundation
2. Complying with the Law
3. Protecting What’s Yours
4. Being a Smart Employer
5. Maintaining Enough
Insurance
6. Recording Everything in
Writing