Legal, IP & Compliance
Recommended: Delaware C-Corp
Rationale: A Delaware C-Corp is optimal for venture-backed growth, offering a structure familiar to investors and flexibility in issuing stock options. This structure supports potential future funding rounds and aligns with the goal of scaling PromptVault to enterprise-level clients. The formation cost is estimated at $500-$1,500, with annual maintenance around $800/year, including franchise tax and registered agent fees. Incorporation should occur before accepting any investment, entering significant contracts, or launching the product.
Intellectual Property Strategy
| Asset | Status | Priority | Cost | Timeline |
|---|---|---|---|---|
| Product Name | Not protected | High | $500-$1,500 | 8-12 months |
| Logo | Not protected | Medium | $500-$1,500 | 8-12 months |
| Tagline | Consider | Low | $500-$1,500 | 8-12 months |
| Domain | Assumed | Critical | $10-$50/year | Immediate |
Trademark Action Items:
- Conduct trademark search (USPTO, state databases).
- Check domain availability (.com, alternatives).
- File federal trademark application (consider DIY vs. attorney).
- Monitor for infringement after registration.
Data Privacy & Protection
| Regulation | Applies? | Why | Key Requirements |
|---|---|---|---|
| GDPR | Yes | EU users | Consent, data rights, DPA |
| CCPA/CPRA | Maybe | CA users? For-profit >$25M? | Opt-out, disclosure, rights |
| COPPA | No | Users under 13? | Parental consent |
Compliance Checklist by Stage
- Pre-Launch:
- Entity formation (LLC or C-Corp)
- EIN from IRS
- Business bank account
- Privacy Policy drafted and published
- Terms of Service drafted and published
- Cookie consent (if EU users)
- At Launch:
- All agreements live on website
- Email compliance (CAN-SPAM footer, unsubscribe)
Legal Budget Estimate
| Item | DIY Cost | Attorney Cost | Recommended |
|---|---|---|---|
| LLC/Corp Formation | $100-$500 | $500-$1,500 | DIY (Stripe Atlas, Clerky) |
| Privacy Policy | $0-$100 | $1,000-$3,000 | Template + brief review |
| Terms of Service | $0-$100 | $1,000-$3,000 | Template + brief review |
| Trademark Search | $50-$100 | $300-$500 | DIY search recommended |