Initial Ethical and Legal Issues Facing a New Firm

Establishing a Strong Ethical Culture

Lead by Example

Establish a Code of Conduct

Implement an Ethics Training Program:

teach business ethics to help employees deal with ethical dilemmas and improve their overall ethical conduct.

Choosing an Attorney for a Firm

Select an Attorney Early

It is critically important that the attorney be familiar with start-up issues.

Intellectual Property

Drafting a Founders’ Agreement

A founders' agreement is a written document that outlines how equity is divided among the founders, how they will be compensated for their contributions (through cash), and the conditions under which founders' shares become fully vested, including the duration of their commitment to the company.

Avoiding Legal Disputes

Meet all contractual obligations. Avoid undercapitalization. Get everything in writing. Set standards.

Nondisclosure and Noncompete Agreements

A nondisclosure agreement binds an employee or other party (such as a supplier) to not disclose a company’s trade secrets.

A noncompete agreement prevents an individual from competing against a former employer for a specific period of time.

Obtaining Business Licenses and Permits

Federal Licenses and Permits: