5 Essential Agreements Every E-Commerce Site Should Have

5 Essential Agreements Every E-Commerce Site Should Have

Contracts, E-Commerce, Privacy, Start-Up
Founders of e-commerce businesses can often be so wrapped up in getting to market and scaling as quickly as possible that they overlook legal protection for their business. Operating any business, let alone one providing goods or services over the Internet, without important legal safeguards in place is like trying to cross the 101 Freeway every day wearing a blindfold. Could you get away with it? For awhile, perhaps. However, sooner or later, the odds will catch up--with potentially catastrophic results. In this post, we'll cover the five essential legal agreements which every e-commerce site should have. Understand that this list is merely intended to describe the most basic documents that your e-commerce site should have in place. It is not meant to be exhaustive. There are other, no less…
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Official Trailer for HBO’s New Theranos Documentary

Popular Culture, Start-Up
The trailer is out for Alex Gibney's latest documentary, "The Inventor: Out for Blood in Silicon Valley". Known mainly for his jaw dropping, Academy award-nominated "Enron: The Smartest Guys in The Room", filmmaker Gibney explores how Theranos rose from obscure med device startup to $9 billion company virtually over night and then almost as quickly crashed and burned in a massive fraud surrounding its Edison blood testing device. In turn, the documentary critiques Silicon Valley itself, including a startup culture that encourages companies to lie to investors, the lack of meaningful regulatory oversight, and a VC culture that endorses a "fake it 'til you make it" attitude towards technology and charismatic founders like (the now infamous) Elizabeth Holmes, Theranos' founder. I always thought the Theranos story was tailor made for…
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Should I Exchange Equity for Freelancer or Contractor Services?

Should I Exchange Equity for Freelancer or Contractor Services?

Entity Formation, Equity Incentives, Start-Up, Stock Options
As a Phoenix emerging business attorney, I am often asked by startup founders whether it is a good idea or not to give equity in exchange for the services of a freelance developer, designer, or [insert type of vendor here] or to just pay for their services outright? I have been asked this question enough that I finally found it to be blog-worthy.  While every situation is different and must be examined individually, the following are my accumulated thoughts on the subject from both the legal and business perspective.  All things being equal, I almost always recommend finding a way to pay the services and own any deliverables outright in order to preserve your equity.  I say this for a number of reasons: Newton's First Law of Startup Companies OK,…
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How Many Members Are Needed to Form an LLC in Arizona?

How Many Members Are Needed to Form an LLC in Arizona?

Business Formation, Entity Formation, Limited Liability Company, Single Member LLC, Start-Up
Is there a minimum number of members required to form an Arizona LLC (limited liability company)?  As a Phoenix startup and small business attorney, this is a question I am sometimes asked by entrepreneurs and expectant business owners who are new to the State and looking to form their Arizona LLC. Although most states used to require a minimum of two members to form an LLC, now all of them and the District of Columbia allow "single member" LLCs to be created. Arizona allows formation of single-member LLCs Arizona LLCs are governed by the Arizona Limited Liability Company Act (Arizona Revised Statutes, Title 29, Chapter 4).  Under A.R.S. §29-601(15), a "Member" is defined as "a person who is admitted as a member in a limited liability company pursuant to this…
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How Many Officers Are Required for an Arizona Corporation?

How Many Officers Are Required for an Arizona Corporation?

Business Formation, Corporations, Start-Up
I'm often asked by startup founders of new Arizona corporations how many corporate officers they need as part of their initial filing with the Arizona Corporation Commission (ACC).   In this post, we'll look at the number---and which types---of officers are required for a new, domestic for-profit corporation in Arizona. Corporate officer requirements under The Arizona Business Corporations Act The good news? Arizona is pretty business-friendly in this regard. Arizona Revised Statutes, Title 10, Chapter 8, Article 4 of the Arizona Business Corporation Act (the "Act") tells us that a corporation shall have "the officers described in its bylaws or appointed by the board of directors in accordance with the bylaws." Subpart D of A.R.S. §10-840 goes on to explain that the same individual "may simultaneously hold more than one…
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