If your startup includes online products for children, you’re likely aware of the Children’s Online Privacy Protection (COPPA) Rule. Late last year, the Federal Trade Commission proposed a number of  changes to the policy, with the goal of shifting “the burden from parents to providers to ensure that digital services are safe and secure for children.”

You just received a term sheet for a round of preferred equity financing in your company – how exciting! But what do the terms mean, and which ones should you really care about? Your company’s initial rounds of financing set the precedent for future raises, so it is important for you, as the founder, to know what you are agreeing to with an investor.

Whether your startup is based on an innovation with generative AI or your company is simply using it as a creative tool, you’ll want to read up on the copyright implications of using artificial intelligence to create content.

After working as an employee for someone else, you want to take the leap and form your own company – great! But, understandably, you may not be ready to quit your day job and lose your steady stream of income. Before investing time and money into your startup, it is important to consider the interplay between your current job and the startup – namely, if there are things that could impact your ability to work for both (outside of not having more than 24 hours in a day). 

The federal Corporate Transparency Act went into effect on the first of the year, adding new requirements for businesses to report details about ownership and control of their companies. The new law targets bad actors such as terrorists and criminals who hide assets in shell companies and by other illegal means. The CTA requires many businesses to file “Beneficial Ownership Information” reports, and there are specific requirements for companies formed after Jan. 1, 2024. To learn more about the new law and your obligations (or whether you’re exempt), read the blog post at O&A, P.C.