Start a New Business

Legal foundations for launching and running your business

Overview

Starting a business means navigating a web of legal requirements — from entity formation and IP protection to payment processing compliance and website accessibility. The laws that apply depend on what your business does, where it operates, and who your customers are.

Federal Laws
21 laws

Website & Platform Compliance

ADA Title II Web Accessibility Rule
ADA Title II — 42 U.S.C. §§ 12131–12165
The U.S. Department of Justice's 2024 rule under Title II of the Americans with Disabilities Act requiring state and local governments to make their websites and mobile apps accessible to people with disabilities. It adopts WCAG 2.1 Level AA as the technical standard and sets phased compliance deadlines based on population size. It applies to public entities including state agencies, cities, counties, public colleges, and K–12 school districts — as well as to third-party EdTech and software vendors whose content or services are offered through those entities.
Americans with Disabilities Act Title III
ADA Title III — 42 U.S.C. §§ 12181–12189
Prohibits discrimination on the basis of disability by places of public accommodation. Courts are split on whether websites qualify, but plaintiffs continue to pursue website accessibility claims — the practical standard is WCAG 2.1 AA.
CAN-SPAM Act
CAN-SPAM — 15 U.S.C. §§ 7701–7713
Sets rules for commercial email and gives recipients the right to opt out. Requires honest subject lines, clear sender identification, a functional unsubscribe mechanism, and a valid physical postal address in every commercial message.
Children's Online Privacy Protection Act
COPPA — 15 U.S.C. §§ 6501–6506
Prohibits unfair or deceptive practices in the online collection of personal information from children under 13. Requires parental consent before collecting, using, or disclosing a child's data. Enforced by the FTC through the COPPA Rule (16 CFR Part 312), which specifies notice, consent, security, and data retention obligations for operators of child-directed websites and services.
Communications Decency Act Section 230
Section 230 — 47 U.S.C. § 230
Section 230 provides significant immunity to online platforms for third-party content posted by users. It is particularly relevant to AI chat systems, social platforms, marketplaces, moderation systems, and products involving user-generated or AI-assisted content, although important limitations and ongoing legal challenges exist.
Computer Fraud and Abuse Act
CFAA — 18 U.S.C. § 1030
The federal anti-hacking statute. Criminalizes unauthorized access to computer systems and creates a civil cause of action companies use against former employees and competitors who misuse credentials or exceed authorized access.
Digital Millennium Copyright Act
DMCA — 17 U.S.C. § 512
Establishes safe harbors for online service providers against liability for user-uploaded infringing content, provided they implement notice-and-takedown procedures. Critical for any platform hosting user-generated content.
Electronic and Information Technology Accessibility (Section 508)
Section 508 — 29 U.S.C. § 794d
Requires federal agencies to make their electronic and information technology accessible to people with disabilities. Directly applicable to any tech company selling to the federal government — your product must meet Section 508 standards or you cannot win federal contracts. Standards align with WCAG 2.1 AA for web content. Enforced through the Access Board and federal procurement requirements.
FTC Act Section 5
FTC Act — 15 U.S.C. § 45
Section 5 prohibits unfair or deceptive acts or practices in commerce and serves as the FTC's primary authority for regulating deceptive AI claims, unfair automated systems, and problematic data practices. It applies broadly to technology companies making representations about AI capabilities, automation, security, personalization, or algorithmic decision-making.
Federal Risk and Authorization Management Program
FedRAMP — 44 U.S.C. §§ 3607–3616
A government-wide program establishing security assessment standards for cloud services used by federal agencies. Not a law but effectively mandatory if you want to sell cloud services to the federal government. Authorization is expensive and time-consuming but creates a significant competitive moat — relatively few cloud providers have full authorization. Managed by GSA. Authorization levels: Low, Moderate, High corresponding to sensitivity of data processed.
Health Insurance Portability and Accountability Act
HIPAA — 42 U.S.C. §§ 1320d–1320d-9
Any tech company building health apps, handling patient records, operating as a business associate of a covered entity, or processing protected health information must understand HIPAA. The Privacy Rule, Security Rule, and Breach Notification Rule each impose distinct obligations. HIPAA's definition of "covered entity" and "business associate" is broader than most tech founders assume — a SaaS platform that processes health data on behalf of a hospital is a business associate and must have a signed BAA. HHS Office for Civil Rights actively enforces, particularly against tech companies following data breaches.
NIST Cybersecurity Framework 2.0
NIST CSF
A voluntary framework — not a law — but practically functions as a de facto compliance standard. Referenced in state breach notification laws (Tennessee), required or strongly encouraged for federal contractors, and used by courts and regulators to assess reasonableness of cybersecurity programs. CSF 2.0 released February 2024 adds a new "Govern" function to the original five (Identify, Protect, Detect, Respond, Recover). Any tech company should understand this framework before claiming to have "reasonable" security.
Open Source Licensing Frameworks
OSS Licenses
Not a single law but a critical compliance area. Open source licenses create legally binding obligations when you use, modify, or distribute open source software. Key license families: Permissive (MIT, Apache 2.0, BSD — few obligations, allow proprietary use); Weak Copyleft (LGPL, MPL — share-alike requirements apply only to the licensed component); Strong Copyleft (GPL, AGPL — require distributing source code of the entire combined work). AGPL is particularly significant for SaaS companies — network use may trigger copyleft obligations even without distributing software. Every tech company needs an open source policy.

Accepting Payments

Bank Secrecy Act
BSA — 31 U.S.C. §§ 5311–5332
Requires financial institutions (broadly defined to include many fintechs and money services businesses) to keep records, file reports, and maintain customer identification programs to assist in detecting money laundering and financial crime.
Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank — 12 U.S.C. § 5301 et seq.
Sweeping financial reform law that created the Consumer Financial Protection Bureau and imposed new obligations on fintech companies, payment processors, and any business offering consumer financial products.
Electronic Fund Transfer Act
EFTA — 15 U.S.C. §§ 1693–1693r
Governs electronic fund transfers involving consumer accounts — ACH, debit cards, and digital wallets. Sets disclosure requirements, error resolution procedures, and liability limits for unauthorized transactions.
Fair Credit Reporting Act
FCRA — 15 U.S.C. §§ 1681–1681x
Regulates the collection, use, and sharing of consumer credit and background information. Applies to any company using background checks, credit reports, or algorithmic consumer evaluations for employment, housing, or credit decisions.
Gramm-Leach-Bliley Act
GLBA — 15 U.S.C. §§ 6801–6809
Requires financial institutions to explain their information-sharing practices and protect sensitive customer data. The Safeguards Rule mandates specific administrative, technical, and physical data security measures.

Protecting Intellectual Property

Copyright Act
17 U.S.C. §§ 101–1205
The foundational federal law protecting original works of authorship. Copyright attaches automatically upon fixation; registration is not required for protection but is required before suing for infringement and to recover statutory damages.
Defend Trade Secrets Act
DTSA — 18 U.S.C. §§ 1836–1839
Created a federal civil cause of action for trade secret misappropriation. Lets companies sue in federal court and seek injunctions, damages, and — in egregious cases — seizure of misappropriated materials.
Digital Millennium Copyright Act
DMCA — 17 U.S.C. § 512
Establishes safe harbors for online service providers against liability for user-uploaded infringing content, provided they implement notice-and-takedown procedures. Critical for any platform hosting user-generated content.
Open Source Licensing Frameworks
OSS Licenses
Not a single law but a critical compliance area. Open source licenses create legally binding obligations when you use, modify, or distribute open source software. Key license families: Permissive (MIT, Apache 2.0, BSD — few obligations, allow proprietary use); Weak Copyleft (LGPL, MPL — share-alike requirements apply only to the licensed component); Strong Copyleft (GPL, AGPL — require distributing source code of the entire combined work). AGPL is particularly significant for SaaS companies — network use may trigger copyleft obligations even without distributing software. Every tech company needs an open source policy.
Patent Act
35 U.S.C. §§ 1–390
The federal law governing patents for inventions and designs. Establishes the USPTO, defines patentable subject matter, and creates enforcement rights. Patent eligibility for software remains a contested area post-Alice.
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