Should I Include Myself or My LLC as a Party in a Non-Disclosure Agreement for a Project Pitch?

Question from Tim Harris, Should I Include Myself or My LLC as a Party in a Non-Disclosure Agreement for a Project Pitch?

Answer from AI:

When drafting a Non-Disclosure Agreement (NDA) for a project pitch, it’s important to consider who should be included as a party to the agreement. This could be you as an individual, or a business entity such as a Limited Liability Company (LLC) that you plan to create.

Individual vs. LLC in an NDA

Including yourself as an individual in the NDA means that you personally are the party to the agreement. This could potentially expose you to personal liability if there’s a breach of the NDA. On the other hand, including an LLC as the party to the NDA can provide a layer of protection against personal liability. This is because an LLC is a separate legal entity that can own assets, enter into contracts, and sue or be sued.

Benefits of Including an LLC in an NDA

There are several benefits to including an LLC in an NDA, such as:

• Liability Protection: As mentioned above, an LLC can provide protection against personal liability.
• Professionalism: Including an LLC can make your project pitch appear more professional to networks.
• Future Growth: If your project is successful, having an LLC can make it easier to manage and grow your business.

Considerations When Including an LLC in an NDA

However, there are also considerations to keep in mind when including an LLC in an NDA:

• Cost: There are costs associated with forming and maintaining an LLC.
• Complexity: Managing an LLC can be more complex than operating as an individual.
• Timing: It can take time to form an LLC, which could delay your project pitch.

Consulting with a Legal Professional

Given the complexities involved, it’s recommended that you consult with a legal professional before deciding who to include as a party in your NDA. A legal professional can provide personalized advice based on your specific circumstances and goals. They can also help you draft an NDA that adequately protects your interests.

For more information on NDAs, you can refer to the U.S. Patent and Trademark Office’s guide on research disclosure and NDAs. For more information on forming an LLC, you can refer to the U.S. Small Business Administration’s guide on choosing a business structure.

Remember, this information is intended to provide a general understanding of the law. It is not intended to provide specific legal advice. Always consult with a legal professional for personalized advice.