Laws and Regulations That New Tech Companies Should Know

Every new company has certain tasks to handle, including in the legal realm. The challenge is to ensure that regulatory obligations are met and the risk of litigation is minimized. This is no less true for new tech companies. Still, these businesses often face unique challenges that demand skilled and adaptive legal counsel.

If you own a new technology company in Texas, the Houston business lawyers of the Oracle Legal Group have you covered. What follows are just some of the laws and regulations to know about.

Legal Matters That Are Not Unique to Tech Companies

To begin with, consider some laws, regulations, and requirements that apply to all businesses, regardless of their industry. Here are a few examples.

Organizing Documents

When companies are formed they may need to file articles of incorporation and related organizing documents. Shareholder agreements, bylaws, partnership agreements, and other instruments may be required or strongly recommended.

Talk to a Houston business lawyer about how your tech company is structured to learn more.

Employment Laws

Within this category are a variety of legal matters for employees and employers alike, such as:

Tax Matters

Depending on your company’s legal structure, taxes can potentially be complicated. Many tech businesses are organized as corporations and need to know how taxes work. Companies must also withhold and pay taxes for their employees. Your business may have extensive obligations under both state and federal law.

Fortunately, there are strategies for reducing taxes and mitigating related issues. If you haven’t yet organized your business we can discuss which legal entity may be most beneficial. Otherwise, we can discuss approaches that can save you on your tax liabilities.

New tech company in Texas

Legal Matters That May Be Unique to Your Tech Company

The above are only some of the issues that every new business must handle. We are prepared to address these on behalf of your new business. What follows are just some examples of issues that are unique to technological companies.

Intellectual Property Rights

Tech companies generate plenty of intellectual property, the ownership of which can sometimes be in question. This arises frequently in business-to-business contracts. Two or more tech companies may use or create trademarks, patents, copyrights, and other intellectual assets.

Contracts should clearly state who can own and use these properties and to what extent. Licensing agreements may also be necessary in certain contexts.

Software Issues

Since tech companies tend to use or create software, there are plenty of potential legal complications surrounding it. Some companies use open-source software and must be sure that the license covers the work they are doing.

For any software the company creates, it is subject to copyright and other forms of protection. The company should also carefully draft any end-user software agreements in light of various laws and regulations.

Privacy Policies

The amount of customer and user data acquired and used by tech companies necessitates robust privacy policies. As with many policies, these are subject to future revisions in light of new laws and regulations. There may also be jurisdictional issues concerning where customers access, for instance, a tech company’s website. We can navigate these matters with your business.

Data Processing and Service Level Agreements

These are more relevant to tech companies that enter into business-to-business deals. Whether they are required will depend largely on the nature of the relationship between the tech company and other parties. Our firm is ready to review your operations and determine whether these agreements are necessary. If so, we can assist in drafting them.

We’ve discussed common legal issues facing technology companies on our blog if you want to learn more.

Taking Care of the Legal Issues Facing Your New Texas Tech Company

The above examples are by no means the limit of what your early-stage technology company needs to know about. At the Oracle Legal Group, we take client representation seriously. If you’re a new business and want to make sure you’re properly addressing legal matters, reach out to us today.

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Laws and Regulations That New Tech Companies Should Know

Laws and Regulations That New Tech Companies Should Know