Your startup will definitely require a startup lawyer to handle the complex legal matters related to your business. Now the question arises - when is the right time
You need when they are able to provide you with the best, value-driven solution for specific problems your startup is facing. With the right expertise on your side, you will feel confident as it will make you well prepared for something that is going to happen.
- Drafting Shareholders’ Agreements: Contracts play an important role to safeguard your business in case if there are conflicts (no matter how big or small they are) or when things are falling apart. An attorney will draft the shareholders, partnership, collaboration and other agreements that help you to set forth the terms and conditions that will govern your business relationship.
The attorney will provide you multiple types of considerations such as management mechanics, membership considerations, decision making, business expansion, appointing/removal of managers vesting considerations and a forum for dispute resolution (e.g., mediation, an advisory committee, arbitration or litigation), in addition to a few others. If the founders without such types of agreements are sued then they have to incur more cost during the “business divorce” in order to prove the existence of the above-mentioned agreements.
- Agreement with vendors and third-parties: If you want to expand your business, then you have to develop business relationships with vendors and third-parties. A start lawyer will help you by preparing services & confidentiality agreements to protect your trade secrets and other information. You will also need to protect your copyrights, trademarks and in some cases, patents in which an attorney will assist you.
The companies that rely on online services for such documents will not get the benefit of advice regarding the type of entity to be formed and the complexity involved in drafting shareholder agreements.
- Hiring Agreements, Best Practices, And Procedures: A company’s most valuable asset is its employees. Hiring the right employees for the right job will boost the growth of your business. A startup lawyer will help you by preparing employment agreements (including non-compete, non-solicit, and confidentiality provisions), drafting employment procedures and policies, helping with I-9 compliance, to differentiate between independent contractors and employees and in determining exempt vs. non-exempt statuses for overtime calculations. These considerations require a one-time investment and will allow you to maximize your return on investment.
Adhering to legal requirements is very important for any organization and hiring a legal counsel will help you to create a sound legal environment for your business. Picking the right lawyer for your startup is just like picking the right business partner. Do not underestimate the importance of choosing a professional lawyer at just the right time in your business. An ideal way to select an attorney is to actually meet with two to three lawyers and see which one best fits your mold.