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

Client/Service Agreement

• Scope of work

• Payment terms

• Liability limits

• Termination clause

Terms of Service (if web-based)

• User responsibilities

• Your disclaimers

• Dispute resolution

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:

• File Articles of Organization

• Create Operating Agreement (template is fine for single-member)

• Get EIN from IRS

• Register for state taxes

• Open business bank account

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