Compliance & Regulations Guide
Stay ahead of rapidly evolving tech regulations. From AI compliance to data privacy, we help Austin startups navigate the complex regulatory landscape without slowing innovation.
AI & Machine Learning Compliance
🤖 AI Compliance Framework
Be among the first to implement responsible AI practices before regulations mandate them.
Transparency
- AI disclosure requirements
- Algorithmic decision-making notices
- Model documentation standards
Fairness & Bias
- Bias testing protocols
- Discrimination prevention
- Audit trail requirements
Data Governance
- Training data compliance
- PII handling in models
- Data retention policies
Risk Management
- Impact assessments
- Safety testing requirements
- Incident response plans
Emerging AI Regulations to Watch
| Regulation | Status | Impact on Startups |
|---|---|---|
| EU AI Act | In Force 2024 | Affects any AI serving EU users |
| Texas HB 2060 | Proposed | AI transparency requirements |
| FTC AI Guidelines | Active | Truth in advertising for AI claims |
| SEC AI Disclosure | Proposed | Material AI risks in filings |
Data Privacy Laws
🔐 Privacy Compliance Matrix
GDPR (Europe)
Triggers: EU residents' data
- Explicit consent required
- Right to deletion
- 72-hour breach notification
- Fines: 4% global revenue
CCPA/CPRA (California)
Triggers: $25M revenue or 50K CA users
- Opt-out of sale required
- Access & deletion rights
- Privacy policy requirements
- Fines: $7,500 per violation
Texas Privacy Law
Triggers: Coming 2024
- Similar to CCPA
- Biometric data focus
- Consent requirements
- Private right of action
Essential Privacy Documents
Cybersecurity Requirements
🛡️ Security Compliance Framework
SOC 2 Type II
Enterprise sales requirement
- 6-12 month process
- $15K-$50K cost
- Annual audits
ISO 27001
International standard
- Global recognition
- 3-6 month implementation
- $20K-$60K cost
Data Breach Response Plan
Contain breach, preserve evidence, notify legal counsel
Assess scope, identify affected data, prepare notifications
Notify regulators (GDPR), inform affected users, public disclosure
Employment Law for Tech Startups
👥 Texas Employment Compliance
Classification
Employee vs Contractor Test:
- ✓ Control over work
- ✓ Economic dependence
- ✓ Permanency
- ✓ Investment in facilities
Misclassification penalties: $1,000+ per worker
At-Will Employment
Texas is at-will, but document everything:
- Written policies
- Performance reviews
- Disciplinary actions
- Termination procedures
Non-Competes
Enforceable in Texas if:
- Reasonable in scope
- Limited geography
- 2 years or less
- Protects legitimate interests
Stock Options
Compliance requirements:
- 409A valuation required
- ISO vs NSO tax treatment
- Securities exemptions
- Notice requirements
Essential Employment Documents
Securities Law Compliance
📈 Fundraising Compliance
Every Funding Round Requires:
- Form D Filing Within 15 days of first sale
- Blue Sky Filings State securities notices
- Accredited Investor Verification Rule 506(c) requirements
- Investment Agreements Proper disclosures & legends
- Cap Table Updates Transfer agent or software
Common Exemptions
| Exemption | Investor Limit | Requirements |
|---|---|---|
| Rule 506(b) | 35 non-accredited | No general solicitation |
| Rule 506(c) | Unlimited accredited | Verification required |
| Reg CF | Unlimited | $5M annual limit |
Compliance Calendar
📅 Annual Compliance Tasks
Quarterly
- Board meetings & minutes
- 409A valuation review
- Privacy policy updates
- Security assessments
Annually
- Delaware franchise tax
- Texas franchise tax
- Foreign qualification renewals
- Business license renewals
- Insurance policy reviews
- Employment law updates
As Needed
- Form D filings (funding)
- Material change disclosures
- Breach notifications
- New state registrations
Get Compliance Support
Don't Let Compliance Slow You Down
We help Austin startups build compliance into their DNA, not bolt it on later.
Compliance Audit
$2,500 fixed fee
- Full regulatory assessment
- Risk prioritization
- Remediation roadmap
- Document templates
Ongoing Compliance
From $1,500/month
- Quarterly reviews
- Policy updates
- Training sessions
- Regulatory monitoring