We all know that paying for the services of your average lawyer isn't cheap. However, legal advice and representation will at some point become necessary for an up-and-coming business.
While it is sometimes recommended to hire a lawyer for matters such as forming a company, securing a trademark, and hiring employees, a typical startup owner is looking to avoid all of the resulting legal fees. You can do your own research using sites like the U.S. Small Business Administration website to handle many of these matters independently.
If you want to strip down your reliance on a lawyer to only what's absolutely necessary, the following scenarios describe points in the life of a startup venture when hiring a lawyer, such as David M Lowe Attorney at Law, might be absolutely necessary:
Making agreements with investors
If you're taking investment funds from other individuals, you should definitely understand any laws applicable to using investor funds. It's important to understand that mishandled investor funds could negate the limited liability and place responsibility on the company's founders. This could land company founders in legal or financial trouble if a business venture fails and investors lose their money.
As the owner or co-owner of a startup, you'll probably be responsible for covering legal fees resulting from hiring a lawyer to help with investor contracts/agreements. However, investing in legal assistance can help you achieve peace of mind and feel certain that you are using investor funds appropriately.
Forming a business partnership
A single proprietorship is fairly easy to establish and run. However, once you form a partnership, things get more complicated. If you're going to be splitting equity between yourself and other partners, you really need some legal advice to make sure that your interests are being protected.
Filing a patent
Entrepreneurs who go through the trouble of filing a patent want to know that everything has been done properly so that it won't be possible to dispute that patent later. While you yourself should research the process of filing a patent beforehand, you should probably also hire a lawyer to help walk you through the process.
Patents are especially important for startup ventures in the software industry. Software patents are often contested, so the help of a patent lawyer is especially important for software ventures.
Creating an operating agreement
Some startups need to have an operating agreement implemented that will lay out exactly how a company is going to be run. If your startup is made up of a fairly large group of people, an operating agreement may help keep things organized and managed without conflict. A lawyer's assistance in establishing and operating agreement can leave everyone feeling more confident in the company's proper functioning.
