Why Every Startup Should Seek Legal Advice
You are sure your startup is destined to be a household name. After all, no one else has cornered the market with your product or services. Like many startups, you may be operating on a limited budget. Hopefully, you’ve made allowances for legal advice. You will find it very necessary.
To begin with, you will need to determine the best type of entity that will work with your business model. A business lawyer can present the advantages and disadvantages of what makes the most sense. For example, a friend might tell you that you just need to file some paperwork and become a Limited Liability Company (LLC). However, an attorney experienced in business formation may present reasons that a corporation makes more sense.
In reality, two professions are crucial for the protection of every startup. Both an accountant and a business lawyer can provide you with the necessary guidance to get your feet on the ground.
Startups Need Legal Business Advice
In a prior article, we reviewed some suggested reasons that every company should retain a business lawyer. Some of them are particularly pertinent to startups. If you are starting your own company, these are some questions you should consider in addition to getting advice on the right type of business entity:
- Is someone else going into business with you? If so, you will need documents indicating duties and responsibilities of each of the owners. You will also need contracts indicating how profits and losses are shared. And, although you might think it’s too early to worry about, you will need legal advice concerning the prospective dissolution of your company.
- Are your intellectual property rights protected? The fact that your business plans to market the latest gizmo is wonderful. However, you should think about patenting any inventions so that no one else steals your idea. To do so, you should seriously consider retaining a business lawyer who also has experience in intellectual property law.
- Where do you plan to do business? Even if you plan to start your new business from home, you will want to secure legal and financial advice regarding the primary location of your company. If you decide to rent office or warehouse space, you should also seek advice regarding your lease agreements. And, of course, if you intend to acquire real estate, you will benefit from legal advice concerning the purchase.
- What government regulations apply to your business? More than likely, your company will be expected to adhere to some government regulations. For example, you have specific legal duties to your employees. Depending on the type of concern, you may need to understand environmental laws. There may be advertising regulations or privacy considerations that require special attention.
- What happens if someone sues you? In some cases, insurance will cover you for any prospective lawsuits. However, you need to know what type of coverage to investigate. Notwithstanding, there is always the chance that your claim will require a lawyer with experience in commercial litigation.
These are just some important questions to consider when setting up your own shop. Many new startups enjoy the benefits of a law firm with experience in a number of business areas.
Are you excited about starting a new business? Manfred Sternberg and Associates has experience representing a number of startup companies. Give us a call to set up an appointment to discuss your new venture.