What legalities do I need to consider when paying a remote team (USA to Eastern Europe) of developers?

I consult with clients who are looking for the right outsourcing situation all the time, and the best way to get started is to figure out what kind of outsourcing partner will be the best 'fit' for your needs. After that, it's easy to find out where that type of outsourcing partner/contractor/freelance hangs out and pick a winner. Try writing up some notes about things like: 1) You mentioned you had a small budget - how small? If your budget is $1500 your options are going to be very different than if it's $25,000. Both of those could be considered 'small budgets' in the right context, so try to put a number out there. 2) You also mentioned that you wanted 'good quality, clean code'. What does this mean and are you willing to pay for that? If you are building an MVP and are really short on funds, you might have to use a less senior developer/team and take the risk of getting sloppier code - but sometimes with an MVP that's ok! If you are building a production app, that's a different story. 3) What is your technical and management expertise? Can you create specifications and manage a developer on your own (not easy to do)? If so, you can save money by using a freelancer, etc. If you are very non-technical and will need PM support, you might consider a small group or agency. 4) What does 'website development' involve, in your vision? Design? Copywriting? QA? Server migration and admin? ui/ux? 5) What is your tolerance for going offshore? You will hear lots of people saying that offshore teams all suck, and lots of people saying that they did it and it went fine. Like most software projects, there is a high failure rate but lots of success with offshore. You can save a ton of money, but you can also take a bath so you need to consider whether you are up to the challenge or not - going offshore takes much more patience, attention, documentation, etc. but it can work. 6) What are the skills/tech that you will need? It's best to get a team that is great at the skills you need. If you want a ruby site, hire a ruby shop. If you want a augmented reality site, find a team that is great at that. Watch out for the generalists :) By thinking through questions like the above, you can change your statement from "Where do you go for outsourcing website development" to something like this: "I am looking for an outsourcing partner who would be interested in a 15k-20k project that will be build in python. This application will be evolved into our production app so the quality must be good. I am a good project manager and will work with the developer on the requirements/spec side, and help test. We will need application/db design and development, server administration, and technical support but all design, content, copy, ui/ux will be provided. We will consider offshore teams but you must have excellent spoken english." When you expand your 'what we're looking for' paragraph, the whole search for outsourcing partner gets much easier! If you like, feel free to give me a call and share your 'vendor profile' with me and I can help point you in the right direction.

I'll keep try to keep this answer brief, but there are several factors and nuances that can be discussed in more depth. Where you decide to incorporate partly depends on what your future goals are with your company. Companies that plan to seek venture capital or go public typically choose Delaware as the state of incorporation, and usually choose a C-Corp. Delaware has a very well developed body of law surrounding corporate governance and that provides comfort and more certainty to future VC investors. If you're not planning to seek VC money any time soon, an LLC is a smart decision because of the tax benefits it can provide to you as the owner. It sounds like you want to grow your company on your own without outside financing. If that's the case, I would recommend forming your LLC in California. Regarding California vs. Delaware, one benefit to forming your LLC in California is that you can avoid paying a registered agent fee which can cost anywhere from $100-200 a year. If you plan to seek venture capital down the road, you can reincorporate in Delaware.

I developed and published mobile apps as an individual for several years, and only formed a corporation later as things grew and it made sense. As far as Apple's App Store and Google Play are concerned, you can register as an individual developer without having a corporation. I'd be happy to help further over a call if you have any additional questions. Best of luck with your mobile app!

I've discussed ideas with hundreds of startups, I've been involved in about a dozen startups, my business is at $1M+ revenue. The bad news is, there is no good way to protect ideas. The good news is, in the vast majority of cases you don't really need to. If you're talking to people about your idea, you could ask them to sign an NDA ("Non Disclosure Agreement"), but NDAs are notoriously hard to enforce, and a lot of experienced startup people wouldn't sign them. For example, if you asked me to sign an NDA before we discussed your Idea, I'd tell you "thanks, but no thanks". This is probably the right place though to give the FriendDA an honorable mention: http://friendda.org/. Generally, I'd like to encourage you to share your Ideas freely. Even though telling people an idea is not completely without risk, generally the rewards from open discussions greatly outweigh the risks. Most startups fail because they build something nobody wants. Talking to people early, especially people who are the intended users/customers for your idea can be a great way to protect yourself from that risk, which is considerably higher than the risk of someone taking off with your idea. Another general note, is that while ideas matter, I would generally advise you to get into startup for which you can generate a lot of value beyond the idea. One indicator for a good match between a founder and a startup is the answer to the question: "why is that founder uniquely positioned to execute the idea well". The best way to protect yourself from competition is to build a product that other people would have a hard time building, even if they had 'the idea'. These are usually startups which contain lots of hard challenges on the way from the idea to the business, and if you can convincingly explain why you can probably solve those challenges while others would have a hard time, you're on the right path. If you have any further questions, I'd be happy to set up a call. Good luck.

This sounds as a deja vu to me. I have been in a similar situation back in 2000, we could only solve the issue thanks to a good mediator. However every situation is different and hence your route to a solution might be different. It also depends where you are in the world that defines how an email and/or verbal agreement might be a sufficient ground for legal actions. I am not a lawyer and can not judge that.