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

2. Start-Up is a Vital Time to Consider Legal Issues
Four Key Legal Topics to Address
1. Address Legal Restrictions/Limits
2. Select Entity Type
3. Protect Intellectual Capital
4. Develop Basic Legal Documents
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

3. Address Legal Restrictions/Limits
Government/Regulatory
- Permits
- Zoning
- Licenses
Private
- Non-compete Agreements
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

4. Select Entity Type
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 your
legal name
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

5. Select Entity Type
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 your
legal name
5
Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

6. Select Entity Type
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
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

7. Select Entity Type
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
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

8. Protect Intellectual Capital
Intellectual Property (IP) Includes:
Trademarks / Trade Names / Trade Dress
- Searches & Registration
Copyrights
- Searches & Registration
Patents
- Registration Required
Trade Secrets
- No Registration Required
- Non-Disclosure/Non-Competes
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

9. Develop Basic Legal Documents
Common Forms You May Need:
- Purchase/Services Agreement
- Terms & Conditions
- Employment/IC Agreements
- IP-related agreements
- Employment Manual
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

10. Conclusion
Start-ups must budget for legal expenses
Failure to adequately address legal issues
initially can cause significant problems
later.
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008

11. Questions?
Email JFChester@TradeLawFirm.com
Direct 214.800.2845
Toll Free 1.877.34.World
Chester/Associates, PLLC
6060 NCX, Suite 560
Dallas, Texas 75206
www.tradelawfirm.com
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Chester/Associates, PLLC
Business - Trademark - International March 28, 2008