The High-touch Legal Services® Blog…for Startups!

© 2009-2021 Dana H. Shultz

Should I Form Separate Legal Entities for Different Lines of Business?

Sign for a forked road, symbolizing separate legal entitiesThis post discusses whether one should form separate legal entities (corporations or limited liability companies) for different lines of business.

I am writing this post because I have seen this type of question online many times. The most recent occurrence was on Avvo. See Should I set up a subdivision or have a LLC or corporation own another LLC? (more…)

Which Protections Should be Included in Online Terms of Use?

Knight's armor with shield and mace

This post is based on my response to a LawPivot question from an entrepreneur who wanted to know which protective provisions should be included in his website’s terms of use.

The provisions that bear most closely on protecting website owners include those pertaining to:

  • Disclaimer of warranties made by the owner
  • Limitations on the extent of the owner’s liability
  • Users’ warranties, especially as concerns any information that they may post
  • Users’ acceptable behavior policies, which set the stage for . . .
  • The owner’s right, in its sole discretion, to terminate use privileges
  • Users’ obligation to indemnify the website owner against liabilities that result from user activities
  • A requirement that any lawsuit related to the website be brought at a venue that is convenient for the owner
  • An arbitration provision as a way to avoid litigation (though I am not a big fan of arbitration because it can be expensive and precludes small-claims court, which can be relatively quick and inexpensive)

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Limiting Liability when You are the One Being Paid

Logo for LinkedIn, where Dana Shultz answered a question about limiting liabilityFrom time to time, I answer questions – typically about the law or about startups – on LinkedIn. Recently I answered the following question:

What is the best way [in a contract] to limit liability when you’re the party receiving payment?

I believe the answer will be helpful to any supplier of goods or services, so I am reproducing it here in slightly edited form.

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