Start a New Business

Legal foundations for launching a tech-enabled 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.

Editorial content for this section is in development. The law listings below are current.

Federal Laws
24 laws

Website & Platform Compliance

Americans with Disabilities Act Title III
ADA Title III
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
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
Governs the collection of personal information from children under 13. Requires verifiable parental consent before collecting, using, or disclosing a child's data — any site or service directed at children or with actual knowledge of child users must comply.
Communications Decency Act Section 230
Section 230
Provides immunity to online platforms from liability for third-party content. The foundational law enabling user-generated content platforms, review sites, social networks, and any platform that hosts content created by others. Not absolute — does not protect platforms from federal criminal law, IP claims, or content the platform itself creates or materially contributes to. Under active legislative scrutiny — the scope of Section 230 immunity has narrowed through case law and remains politically contested.
Computer Fraud and Abuse Act
CFAA
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
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.
FTC Act Section 5
FTC Act §5
Prohibits unfair or deceptive acts or practices in commerce. The FTC's primary enforcement tool against privacy violations, misleading marketing, security misrepresentations, and dark patterns — applies to nearly every business.
Federal Risk and Authorization Management Program
FedRAMP
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
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.
Section 508 of the Rehabilitation Act
Section 508
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.

Accepting Payments

Bank Secrecy Act
BSA
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
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
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
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
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

Bayh-Dole Act
Bayh-Dole
Governs IP rights in federally funded research. Allows grant and contract recipients to retain patent rights to inventions. Government retains a royalty-free license and march-in rights. Critical for any tech company receiving federal R&D funding or SBIR/STTR grants.
Copyright Act
Copyright Act
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
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.
Defense Federal Acquisition Regulation Supplement
DFARS
DoD-specific supplement to the FAR. Contains stricter requirements on technical data rights, software rights, and cybersecurity (CMMC). CMMC program effective November 2025 requires third-party cybersecurity certifications for DoD contractors.
Digital Millennium Copyright Act
DMCA
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
Patent Act
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.
Stevenson-Wydler Technology Innovation Act
Stevenson-Wydler
Promotes technology transfer from federal laboratories to the private sector. Relevant for tech companies seeking to license federally developed technology or partner with federal labs.
Technical Data and Computer Software Rights
FAR 52.227
FAR contract clauses governing government rights in technical data and computer software. Determines whether the government receives unlimited, limited, or government-purpose rights. Negotiating these clauses is one of the most consequential IP decisions when entering government contracting.
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