Lawyers have been depicted as parasites of sorts, I firmly believe that using a startup lawyer in the correct way can be one of the best decisions a startup can make.
Whether your startup is pushing the legal boundary like Uber or a radical clothes selling startup like Poshmark, hiring a startup lawyer can save your startup a lot of money in the future. Below are a couple reasons a startup should hire a lawyer as soon as possible.
Focus On Your Startup First
Being at the forefront of a startup can be exciting, but at the same time-consuming.
That is why you should be focused on the development of your startup rather than worrying about the legal side. In order to be the most efficient you can be it is imperative to hire a lawyer to take care of all of the legal issues your startup might face.
Issues like partnership agreements, incorporating, intellectual property protection and non-disclosure agreements should be as simple as bread and butter to an experienced startup lawyer.
They will be able to advise whether to incorporate as an LLC, corporation or sole proprietorship as well as fill out the paperwork correctly.
Having a lawyer draft up an iron-clad partnership agreement can save you from a lot of stress and trouble in the future. Knowing exactly what would happen if the founders disagree is immensely important as many startups have failed due to disagreeing founders.
Feuds & Disputes
Startups can cause rifts in the most secure relationships because of how much people are personally vested in the company. In the terrible chance that a partnership comes to an end, having a lawyer can help the founders keep the “divorce” cordial and efficient.
Along with an iron-clad partnership agreement, the lawyer can help mediate the separation keeping the startup the primary concern.
Fixing Mistakes
Another important point to consider is that mistakes can be hard to fix, especially if it’s law related. If after researching more you decide you should have incorporated as something else it will be expensive to convert.
Having a lawyer advise you before you even make the decision in the first place can save you a lot of money. Some other issues like employment contracts are even harder to fix if there are mistakes present, which is why hiring a lawyer is imperative to avoid mistakes that can bring your startup crashing down.
Apart from the obvious legal reasons, an experienced lawyer can be one of the best advisors a startup can have. A lawyer who has worked with startups before can be immeasurably helpful to an inexperienced startup team.
He can help the founders stay on course without making detrimental mistakes that could hamper their progress. Having a lawyer on your startup team is also a great sign for potential investors as they are synonymous with professionalism and good advisement. A lawyer also can introduce founders to possible investors, including established venture capitalist firms and angel investors.
Most founders will not have a background in law so it is best to leave it to the professionals, especially when you are dealing with something as important as your startup.
Sam Mollaei, Esq., startup lawyer, can be reached by email [email protected] or via phone (818) 925-0002.
Mollaei Law is a law firm specializing in business law serving businesses and entrepreneurs. We provide legal expertise in all stages of business development by drafting and reviewing contracts and agreements, assisting transactions and negotiating, forming LLC's and Corporations, registering trademarks and copyrights, business planning, and answering any legal questions you may have about your business.
