
Ask HN: Lean legal for an unethical startup? - throwawayethics
So I have an idea for a side project&#x2F;startup that most people would consider unethical. I&#x27;m not convinced that it&#x27;s unethical and I want to give it a try as an experiment, one that may make money if successful.<p>But due to the questionable ethics of this project, it seems it has a good chance of getting sued. Imagine, for reference, a site that helps you put copyrighted material on YouTube, except not as far on the unethical scale, and without powerful entertainment industry opponents.<p>What&#x27;s the minimum I should do to protect myself before trying this experiment? I&#x27;m thinking just set up an LLC. I want to minimize my expenses since this is mostly an experiment for my own amusement. (Although if it succeeds it could generate substantial cashflow.)
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mindcrime
Setting up an LLC, or even a traditional corporation, doesn't grant you
complete immunity from liability. That's _especially_ true if you're a "single
member LLC" or the sole stockholder in a corporation. I'm pretty sure it's
even more true if you organize the legal entity for the sole purpose of trying
to shuck liability for something you knew in advance was dodgy. See:
[https://en.wikipedia.org/wiki/Piercing_the_corporate_veil](https://en.wikipedia.org/wiki/Piercing_the_corporate_veil)

OTOH, there is a difference between "unethical" and "illegal". But in my
opinion, if you don't have a definite answer on where your idea falls on that
spectrum, there are only two reasonable choices:

1\. Drop it and move on to another idea.

2\. Spend the money up-front to consult with a lawyer and find out exactly
what the risks are and how to best protect yourself.

But that's just me...

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throwawayethics
Appreciate the reply. Very appropriate username in this case. ;)

I'm pretty sure my idea is on the potentially unethical side, but not illegal.
Although it could be used for illegal activities. (In that sense, so could
many web services, and they are.) So for others that read this, any input on
how much protection a good ToS could offer?

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pavornyoh
>What's the minimum I should do to protect myself before trying this
experiment?

Have a lawyer at the ready via speed dial. This will cost you alot of money if
you are going to be doing something unethical.

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throwawayethics
Out of curiosity, why on speed dial? (I take it you mean a prearranged
retainer.) The potential for legal trouble here is more along the lines of
"someone got annoyed at what I was doing and tried to sue me" rather than "the
FBI sent a military attack squad to my mansion in New Zealand."

