United States: contracts, corporate, trademarks and employment
United States contract, corporate and employment law is mostly state law. Delaware is the default state of incorporation for venture-backed and holding companies; California is where many of those companies actually employ people, and it imposes its own rules on employment, non-competes and equity. Wyoming and Nevada are occasionally used for privacy or franchise-tax reasons. Trade marks are federal through the USPTO.
LegalMatrix prepares documents on its AI-assisted workflow and delivers in the United States through a US law firm engaged as its delivery partner. Every document is reviewed and signed off by an attorney admitted in the relevant state (Delaware or California for the products listed here) before release. Trade mark searches and USPTO filings are handled by a US-licensed attorney, which the USPTO requires for foreign-domiciled applicants.
Contracts
| Topic | Essentials |
|---|---|
| Governing law | Parties may choose the governing law of a commercial contract, and Delaware or New York law is commonly chosen for corporate and financing agreements. California Labor Code section 925 prevents an employer from requiring an employee who primarily lives and works in California to accept another state's law or forum as a condition of employment. Federal law governs trade marks, copyright, patents, securities and some consumer matters. |
| Language | English. No translation formality applies, but a foreign-language contract would need a certified translation in court. |
| Electronic signature | The federal Electronic Signatures in Global and National Commerce Act (ESIGN, 2000) and the Uniform Electronic Transactions Act as enacted in Delaware (6 Del. C. chapter 12A) and California (Civil Code section 1633.1 and following) give electronic signatures and records the same effect as paper where the parties have agreed to transact electronically. Exclusions cover wills, codicils and testamentary trusts and most of the Uniform Commercial Code other than sales and leases. California adds exclusions for certain consumer notices and specified statutes (Civil Code section 1633.3). Notarised documents follow state notary rules; remote online notarisation is available in many states. Check the authority. |
- The statute of frauds requires certain contracts (for example sales of goods over USD 500 and contracts that cannot be performed within a year) to be evidenced in writing.
- UCC Article 2 supplies default terms for sales of goods, including implied warranties that must be disclaimed conspicuously.
- Delaware enforces contractual choice of forum and jury waivers; the Court of Chancery hears corporate disputes without a jury.
- Indemnities, limitation of liability and warranty disclaimers are enforced largely as written between businesses, which is why US-style agreements are longer than their Asian counterparts.
Corporate
| Topic | Essentials |
|---|---|
| Director duties | Delaware directors owe fiduciary duties of care and loyalty (including good faith) and are protected by the business judgment rule when informed, disinterested and acting in good faith. Delaware's General Corporation Law was amended in 2025 to add safe harbours for controlling-stockholder and interested transactions approved by independent directors or disinterested stockholders; check the authority. California directors owe similar duties under the Corporations Code, and section 2115 applies some California rules to foreign corporations with a majority California presence. |
| Shareholder rights | Delaware stockholders may act by written consent unless the certificate of incorporation says otherwise (section 228), inspect books and records for a proper purpose (section 220, narrowed in 2025), and seek appraisal in mergers (section 262). California corporations default to cumulative voting and require shareholder approval for reorganisations. LLC members' rights are almost entirely contractual, set by the operating agreement. |
| Share transfers | Stock is transferred by assignment and recorded on the stock ledger; Delaware imposes no transfer tax. Transfer restrictions (rights of first refusal, co-sale, lock-ups) are valid if noted conspicuously on the certificate or in the stockholders' agreement (section 202). Securities law applies to every issuance and resale; private companies rely on exemptions such as Rule 701 for employee equity and Regulation D for investors. |
- Delaware requires a registered agent in the state and an annual franchise tax report; California requires a Statement of Information and a minimum franchise tax.
- The federal Corporate Transparency Act beneficial ownership reporting regime was narrowed in 2025 to exclude domestic companies; check FinCEN for current scope.
- Wyoming and Nevada market low fees and privacy for LLCs; they do not change the federal tax position and are rarely used for venture-backed companies.
- An LLC taxed as a partnership is the usual holding vehicle for US real estate and family investments; a C corporation is the usual operating and venture vehicle.
Trademarks
| Topic | Essentials |
|---|---|
| Authority | United States Patent and Trademark Office (USPTO) |
| System | Use-based. Rights arise from use in commerce; federal registration under the Lanham Act may be sought on the basis of use or a bona fide intent to use, but registration issues only after use is shown. |
| Time to registration | Approximately 12 to 18 months from filing to registration for a use-based application without office actions; intent-to-use applications take longer because a statement of use must be filed after allowance. Check the authority. |
| Classes | Nice Classification. Fees are charged per class; the base application fee is higher where free-form descriptions are used or required information is missing. Check the authority. |
| Opposition | 30 days from publication in the Official Gazette, extendable on request to the Trademark Trial and Appeal Board (TTAB). |
| Term | 10 years from registration, renewable. A Section 8 declaration of continued use is required between the fifth and sixth years, and a combined Section 8 and 9 filing between the ninth and tenth years of each term. |
- Foreign-domiciled applicants and registrants must be represented by an attorney licensed in a US state.
- The United States is a member of the Madrid Protocol; a US base application can be extended abroad, and incoming designations are examined to the same standard.
- State trade mark registrations exist but offer limited value; common law rights depend on actual use in a territory.
- Descriptions of goods and services are examined strictly; broad class headings are refused.
Employment
| Topic | Essentials |
|---|---|
| Probation | Employment is at will in every state except Montana, so a probation period has no statutory meaning. Introductory periods are used for benefit eligibility and expectation-setting only. |
| Notice | No statutory notice applies to individual terminations. The federal WARN Act (60 days) and California WARN apply to plant closings and mass layoffs above headcount thresholds. Final pay timing is governed by state law; California requires immediate payment on dismissal. |
| Non-compete | California voids employee non-competes under Business and Professions Code section 16600, and since 1 January 2024 sections 16600.1 and 16600.5 make it unlawful to include or attempt to enforce one, including agreements signed out of state. Delaware enforces reasonable non-competes but the Court of Chancery has refused overbroad ones and declines to blue-pencil. The FTC's 2024 nationwide rule was set aside by a federal court and is not in force; check the FTC. |
| Equity | In the United States 'ESOP' means a tax-qualified employee stock ownership plan; start-ups instead adopt an equity incentive plan granting incentive stock options (IRC section 422), non-qualified options, restricted stock and RSUs. Plans need board and stockholder approval, a 409A valuation to set exercise price, Rule 701 for the securities exemption and, in California, a permit or notice under Corporations Code section 25102(o). Recipients of restricted stock consider an 83(b) election within 30 days of grant. |
Products available here
Contracts: drafting and review
Counterparty Contract Review
Negotiation Playbook
Go-to-Market Contract Bundle
NDA Set
Master Services Agreement and SOW
Data Processing Agreement
Successor Programme Document Set
Shareholders' Agreement
Subscription and Share Transfer Documents
Intercompany Services Agreement
Board and Shareholder Resolutions Pack
Cross-Border Employment Contract
Secondment Agreement
Employee Share Option Plan
Executive Equity Grant
Family Holding and Trust Documents
IP rights: applications and portfolio
Trade Mark Search and Filing
Patentability Assessment
Copyright Registration
IP Assignment and Licence
Technology Licence Agreement
IP Portfolio Management
Renewals and Annuities
Trademark Watch
Questions
Delaware or California for our operating subsidiary?
Most groups incorporate in Delaware and register to do business in California, accepting two sets of filings in exchange for Delaware's corporate law and courts. A company that will only ever operate in California with no outside investors may incorporate there directly. See the LegalMatrix guide on Delaware versus California.
Can we include a non-compete in a California offer letter?
No. It is void and, since 2024, unlawful to include or attempt to enforce, even if the agreement chooses another state's law. Use confidentiality, invention assignment and (with care) customer non-solicitation terms instead.
Does a US trade mark require use before filing?
No. You may file on an intent-to-use basis, but registration issues only after you file a statement of use showing the mark in US commerce.
Who can file our USPTO application?
A foreign-domiciled applicant must be represented by an attorney licensed in a US state. LegalMatrix's US partner attorneys file and prosecute the application.
Do we need stockholder approval for an equity incentive plan?
Yes. Board adoption and stockholder approval are required for incentive stock options under the tax code and are standard for every plan; investors' consent rights under the financing documents usually apply as well.
What is an 83(b) election?
A filing with the IRS within 30 days of receiving restricted stock that elects to be taxed on the stock's value at grant rather than as it vests. It is irrevocable and is a personal tax decision for the recipient; LegalMatrix documents the deadline but does not give tax advice.
Guides
Sources
- USPTO: trademarks ↗
- Delaware Division of Corporations ↗
- Delaware General Corporation Law (Title 8) ↗
- California Secretary of State: business programs ↗
- California Civil Code section 1633.3 (UETA exclusions) ↗
- California Department of Industrial Relations ↗
Reviewed 26 October 2026. Rules and fees change; confirm with the authority before relying on them.
Documents and filings for United States
Pick a product or describe the matter. Fixed price within one business day.