Legal & Compliance at Launch: A Plain‑English Guide

A founder’s plain-English checklist for Privacy Policy, Terms of Service, email compliance (GDPR/CAN‑SPAM), taxes/invoices, data requests, and DPAs at launch.

Legal & Compliance at Launch: A Plain‑English Guide

Not legal advice – just a founder’s checklist. Are you launching a SaaS or online service and feeling lost about legal basics? This comprehensive guide for beginners will walk you through the minimum viable documentation and good-faith practices you need at launch. We’ll cover Privacy Policies, Terms of Service, email marketing compliance, taxes/invoices, and handling user data requests – all in plain English. By the end, you’ll know how to check those legal boxes and avoid common pitfalls (SEO: SaaS legal beginners, privacy terms startup). Let’s dive in!

Privacy Policy & Terms: Your Starter Checklist

If your startup has a website or app, you almost certainly need a Privacy Policy and Terms of Service in place [1][2]. These two documents define your relationship with users and protect your business. Here’s what to know:

Privacy Policy: This is often legally required (e.g. by laws like GDPR in the EU or CalOPPA in California) and must clearly describe your data practices [1]. In short, do what you say and say what you do with user data [3]. At minimum, disclose what personal information you collect, how you use and share it, and how users can contact you or exercise their rights. Make sure the policy matches reality – if you say you “never” do something, be certain there are no exceptions [4]. Keep the language simple and honest. As your site changes, keep the policy up to date and accurate.
Terms of Service (ToS): While not always legally mandated, a well-written ToS is vital for setting rules and reducing liability [5][6]. Your Terms should outline user guidelines and prohibited behaviors, your intellectual property rights, payment or subscription terms (if applicable), warranty disclaimers, and liability limits [6][7]. Essentially, the Terms are your contract with users: they help manage user expectations, protect your IP (so people can’t steal your content/code), and limit what you can be sued for.
Placement & Access: Ensure these policies are easy to find. The standard practice is to link your Privacy Policy and Terms in your website footer so they’re visible on every page [8]. You can also link them during user sign-up or in app menus. (Common question: “Where do I put policies?” – Answer: in your site footer, prominently [8]!). This accessibility is important, as many laws require that users can easily find and read your policies.
Pro Tip: Once you publish your Privacy Policy and Terms, actually follow them. Train your team on these policies. If your Privacy Policy promises an option to delete data or opt out of emails, you need to have those mechanisms working [9]. Consistency between what you claim and what you do will keep you out of trouble.

If you plan to send marketing or product emails, you’ll need to comply with email laws (primarily CAN-SPAM in the U.S. and GDPR/ePrivacy in the EU). Non-compliance can lead to fines or angry users, so build good habits from day one:

Get Proper Consent: Under EU law (GDPR), you generally must obtain explicit consent from a user before sending them marketing emails [10]. That means a user should knowingly opt in (for example, by checking a signup box for your newsletter). In the U.S., CAN-SPAM doesn’t require a formal opt-in, but sending unsolicited bulk emails is risky – and if you do cold-email someone, it still must follow the rules below. Best practice globally is to only email people who have given consent (or who are existing customers with an expectation of communication).
No Deception: Always use accurate sender information and subject lines that reflect the content [11]. Don’t pretend to be someone you’re not or trick users with misleading subjects.
Include Required Identifiers: Every marketing email must tell recipients who it’s from and how to contact you. In fact, U.S. law requires a valid physical postal address in the email [12] (this can be your office address or a PO Box). Including your company name and address in the footer of emails is an easy way to comply.
Easy Unsubscribe: Provide a clear unsubscribe link or method in every marketing email [13]. Users should be able to opt out of future emails with one click or reply. Honor opt-out requests promptly. CAN-SPAM gives businesses 10 business days to remove an opted-out contact (and prohibits fees or extra info beyond an email address for unsubscribes) [14].
EU vs. US differences: In summary, EU rules = opt-in needed, US rules = opt-out allowed [15]. However, if you’re a startup aiming to grow globally, the safest path is to get consent and always include an unsubscribe. This covers you under both regimes. Also, be mindful of other regions (e.g. Canada’s CASL is even stricter).
Transactional Emails: Emails such as order confirmations or account alerts (password resets, etc.) are usually exempt from marketing consent rules, but they still should include your identification and maybe a subtle link to your Privacy Policy. Don’t mix promotions into a purely transactional email.

By following these practices, you’ll not only comply with laws but also build trust: users hate unwanted spam. Sending emails only to interested users and making opting out easy will improve your sender reputation and engagement.

Taxes & Invoices: A Conceptual Overview

Making money? Congratulations – now don’t forget about taxes. Selling online means you may have tax obligations in various places. Here’s a simplified overview (covering both U.S. and EU considerations):

U.S. Sales Tax (State Level): There’s no federal sales tax, but states (and cities) have their own rules. After Wayfair, even online-only businesses may need to collect sales tax in states where they have significant sales (economic nexus). As of 2025, around half of U.S. states tax SaaS or digital services in some form [16]. Action item: Research where your customers are and whether your product is taxable there. If you’re selling subscriptions across the U.S., you may eventually need to register in multiple states [17].
VAT for EU and International Sales: If you have customers in the EU (or UK, etc.), be aware of VAT. The EU requires that digital services sold B2C apply VAT based on the customer’s country (effectively no minimum threshold) [18]. For B2B, you usually won’t charge VAT if you have a valid customer VAT ID (reverse charge) [19][20].
Issuing Invoices/Receipts: Especially for B2B, invoices may be required (and expected). Include invoice date, unique invoice number, your company details + tax ID, the customer’s details (and VAT ID for EU B2B), description, amount, and any tax applied [21][22][23]. Payment platforms like Stripe can help handle receipts/invoices and tax calculations.
Record-keeping: Keep records of sales and taxes collected. File required returns (sales tax filings, VAT reports) on time to avoid penalties.

In short, plan for taxes wherever you have customers. Start by registering where required, charging the right tax, and providing compliant invoices. When in doubt, consult a professional – but at least now you know what to ask.

Data Deletion and User Requests: The Basics

Modern privacy laws empower users with rights over their data. Two big ones to know are the right to access data and the right to deletion (a.k.a. “right to be forgotten”). Even if you’re a small startup, be prepared to handle these requests in jurisdictions like the EU (GDPR) and California (CCPA) [24].

Access Requests: A user may ask, “What data do you have about me?” Under GDPR, you generally have 30 days to answer [25]. Verify identity, then compile personal data from your systems (account info, analytics, support tickets) and share in a readable format.
Deletion Requests: Users can ask you to delete their personal data. You generally must comply unless a valid exception applies (e.g., legal recordkeeping, security) [26]. Remove data from live systems (and ideally backups, if feasible). Design systems so personal data can be isolated and removed.
Other Rights: Depending on laws, users might have rights to correct data, object to processing, or retrieve data (portability). As a startup, focus first on access and deletion, and state in your Privacy Policy how users can make requests.
Response Time and Process: Respond promptly. GDPR typically requires response within 30 days, CCPA within 45 days [25]. Acknowledge the request and keep users updated [28]. Keep a log of requests and outcomes [29].
Do I need a DPA? If you handle EU personal data with third-party processors (cloud hosting, email, analytics), you likely need a Data Processing Agreement with each processor [30]. Major vendors provide standard DPAs; if you are a B2B processor, customers may ask you for yours as well [31].

Next Steps and Good‑Faith Best Practices

Have your Privacy Policy and Terms ready (and tailored to your business). Link them in your website footer and anywhere else appropriate (account signup, mobile app store listing, etc.) so users can always find them [8]. Include policy links in customer-facing communications (e.g., email footers) – simple transparency wins.
Set up your email platform correctly to handle consent and unsubscribes. Use double opt-in (especially for EU users), include an unsubscribe link automatically, and add your company info to the footer.
Implement tax collection/invoicing early. Charge sales tax or VAT where required and be ready to issue compliant invoices [21]. Linking your payment processor with accounting tooling can save lots of time.
Be responsive to users’ data concerns. Publish a contact email (or form) for privacy requests. Respond within the required timeframe [25] and log requests.

By covering these basics, you’ll address many long-tail questions that new founders have, like “Where do I put my policies?” (answer: in your footer and other prominent spots) and “Do I need a DPA?” (if you handle personal data with third parties, very likely yes). You’ll also demonstrate to users, partners, and investors that you’re handling legal and compliance matters in a responsible way – which builds trust.

Finally, always remember this guide is a starting point. It’s not legal advice, and there’s no one-size-fits-all in law. Once you have some traction (or if you operate in a high-risk domain), consult a lawyer for a review. But by following this checklist of privacy, terms, email, taxes, and data practices, you’ve done the minimum viable compliance needed at launch [2].

Legal & Compliance at Launch: A Plain‑English Guide