Most start-up founders are excited about taking their dream from a bare idea to concrete reality. In the early stages of business, they’re consumed by discussions about funding, growth, and product development, which means legal matters often wind up at the bottom of the priority list. While seemingly harmless, this exposes their business to unforeseen risks and challenges, which could cause irreparable losses. In fact, several research reports list legal issues as one of the primary reasons why one in ten start-ups fail.
Why Do Startups Need a Lawyer?
Legally protecting your startup is hardly the same as picking up contract templates off the Internet and using them for your your business, which is what most new entrepreneurs wind up dong. An experienced business startup lawyer helps you secure your business in ways no self-help can.
Some of the reasons for having a startup attorney by your side include:
- Incorporation – Registration of your business is the first step in creating a legal entity. Incorporating your business as a C-Corp, an S-Corp or, an LLC can help you save on taxes, as well as protect your personal assets. An experienced startup lawyer can explain the different types of business incorporation in detail, so that you choose the best option for your needs.
- Equity – The Zuckerberg/Winklevoss litigation is a classic example of startup founders running into massive problems for not hashing out the details of equity splits early on. Having a solid written agreement in place ensures each co-founder knows what percentage of the business they’re entitled to, along with other particulars such as rights and responsibilities, salaries, and voting decisions.
- Government Laws – Trade restrictions, as well as securities, employment, environmental and workplace safety laws are just some of the state and federal laws your startup will need to comply with. Violation of any of these, or other governmental policies/regulations, can leave your business liable to fines and lawsuits.
- Intellectual Property Rights (IPR) – Your startup rests on the unique product or service you are offering. Not using IPR safeguards can put your trade secrets at risk, while being unaware of them can make you an infringing party to third-party intellectual property rights.
Drafting compact lease agreements for use of commercial space, negotiating contracts with customers and vendors, and hiring are additional things that an business attorney can assist with.
Contact an Experienced Florida Business Startup Lawyer for Assistance
If you are looking for legal assistance with your startup, contact Florida-based business startup lawyer Todd M. Kurland at (561) 693-4514 for a free consultation. Keeping budgetary considerations in mind, our team is ready to assist you with legal compliance, incorporation, intellectual property, and corporate governance guidelines so that you can focus on the more important role of running your business.