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MenuHow do the service agreement, terms of use, and privacy policy all work together? Should the documents be one big agreement or separate?
Should the documents be one big agreement or separate?
My company provides project management services and along with a saas platform to pipeline service companies. My customers are requesting a master service agreement for the project management services. The saas offering is brand new and I am not sure how to incorporate it.
Answers
I would probably structure it so that there is a Master Services Agreement with the general terms of your relationship which reference subsequently attached Service Orders (or Scope of Work) each time you engage with them for project or service. When a customer signs up for the SaaS product, I would incorporate SaaS-specific policies by referencing them in the corresponding Service Order.
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Does anyone know of a good SaaS financial projection template for excel/apple numbers?
Here is a link to a basic model - http://monetizepros.com/tools/template-library/subscription-revenue-model-spreadsheet/ Depending on the purpose of the model you could get much much more elaborate or simpler. This base model will help you to understand size of the prize. But if you want to develop an end to end profitability model (Revenue, Gross Margin, Selling & General Administrative Costs, Taxes) I would suggest working with financial analyst. You biggest drivers (inputs) on a SaaS model will be CAC (Customer Acquisition Cost, Average Selling Price / Monthly Plan Cost, Customer Churn(How many people cancel their plans month to month), & Cost to serve If you can nail down them with solid backup data on your assumption that will make thing a lot simpler. Let me know if you need any help. I spent 7 years at a Fortune 100 company as a Sr. Financial Analyst.BD
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Do I have to file form 5472 for "additional paid-in capital"?
Yes you should be reporting the capital contributions. Under the old Form 5472 rules, it's true that only items that impacted taxable income would be reportable transactions. So, a capital contribution by you to the corporation would not be reportable, unless the equity contribution was somehow below or above a fair value contribution in exchange for services that you might provide for the corporation - essentially an imputed reportable transactions. When the IRS changed the Form 5472 rules to require non-U.S. owned single member LLC's, they expanded the reportable transaction definition to include virtually everything. The term “transaction” is defined in Treas. Regs. Section 1.482-1(i)(7) to include any sale, assignment, lease, license, loan, advance, contribution or other transfer of any interest in or a right to use any property or money, as well as the performance of any services for the benefit of, or on behalf of, another taxpayer. So, for example, contributions and distributions would be considered reportable transactions with respect to such entities. These amounts can be reported on Lines 12 and 25 with an explanatory footnote that clarities the amounts are capital contributions and not amounts that impact taxable income.JK
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What is the best way for a startup to draft Terms of Service and Privacy without spending thousands of dollars?
Your first point of reference should be experience. The most effective way to create your ToS is to consult with a lawyer who specializes in your industry. This also hold true for your that and any business legal document. It’s true that you can find different online services and templates to assist you, but the truth is that these documents could very well be null and void. Your business is specific and unique and your ToS should be the same way. I advise against copying your ToS or using one of the “easy to use” sites as they will almost certainly fail to include or capture everything. Read more: https://lawtrades.com/blog/protect-website-liability/ At www.lawtrades.com, we have plenty of experienced Terms of Service and Privacy policy lawyers who will complete it for you on-demand. I have seen PP and TOS prepared routinely for $599 or less, and these documents essentially serve as a “blueprint” for your business. (Full disclosure: I'm the founder/CEO). In my opinion, copying your competitors legal documents will not work for you in the long run. The odds are high that the business had their documents customized, and by copying and pasting you are claiming that your business has the same features and services which is highly unlikely. Hope this helped address some of your concerns. When you're ready, you make your request completely free at www.lawtrades.com to get a better feel for the process. Feel free to mention "clarity" for a discount :)RA
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How important is coding knowledge in starting a SAAS business? Should I start by learning code or just get started on the idea? Book suggestions?
I started a large SaaS Company for B2B where perfection in code is as importante as it gets. So here is my advice, DON'T CODE until you know what the Saas Really is. First start understanding what the problem REALLY is. Interview people and actually spend 100% of your time doing Customer Discovery. (This sounds easy but it is a skill you'll have to develop far more important than coding). Once you understand what the problem is, come up with a value proposition. Still no code. Then make a sell. If you can actually find things already existing that you can Hack and put it together then use that. Then make another sell. If you can sell it to at least 50 people if you are B2C, or if you are B2B you should have at least 1 customer. Once you do that then start automating some parts of the solution that you have hacked and so on. But THE most important thing is to be in constant conversations with your customers and hot leads. Remember you are a customer making machine not a coding machine, the first one is where the money is. Hope this helped you, if you want to talk more about customer discovery and customer development, just give me a call.JC
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If I come up with a coaching methodology / formula, is it protected under Copyright?
(I'm a small biz attorney who helps people with copyright, trademark, and other IP law, and I'm answering per U.S. law.) As soon as you take your idea and put it into a tangible format (write it down, create an infographic, record a video), then that writing/infographic/video is automatically protected by copyright law. You can record the copyright on it too, which makes it easier to protect and get damages from other people taking it. But the formula itself would be probably protected under trade secret law or patent law. Patent law obviously takes a bit more effort, because you have to apply for the patent and get your application examined by the USPTO, which takes years and $$$. Keeping it protected under trade secret law means you have to make an effort to keep it secret (which may not work if you are disclosing it as part of your marketing efforts), such as keeping it confidential and requiring NDAs. As someone else said, the other terms you use might be protected under trademark law. If a member of the public would use those terms to link your products/services with the source of the product/service (aka, your company), then they could be trademark-able. There are some state law protections for trademarks, and you can also file to register the trademark with the USPTO and get more protection. Hope that gets your started!EP
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