Starting a new business is generally an unnerving experience for most as there are a lot of uncertainties and risks involved. Hiring a start-up lawyer when setting up a company is the most effective way to ensure that processes and procedures are completed correctly, as you can rely on them for support and guidance. However, there are several factors that businesses need to be aware of prior to hiring business lawyers.
Like-minded work ethic & vision
Start-up businesses require lots of attention, drive and quick decision making. With this in mind, it is essential for the success of a startup business to hire a lawyer that obtains these vital skills and work ethic. The thought process and decisions that need to be made for start-up businesses are largely different to those businesses that are already well established. Another key area of consideration is to look into the types of legal issues that the law firm specialises in. Ensure that they are equipped with dealing with specific legal requirements that are relevant to your business.
It is vital that start-up attorneys manage the client’s legal risks rather than eliminate them entirely. The reason being that start-up companies are expensive and there are often a lot of unprecedented costs involved. Therefore, depending on the unique circumstances, if it is possible to do so, it is ideal to avoid racking up a hefty lawyer’s bill when first starting out and only focus on the essential tasks that need to be completed.
If remaining within the budget is important, which it generally is for most start-up businesses, then it is important for businesses to set out the maximum budget before hiring a lawyer. In order for this process to go smoothly, start-up businesses should list down the key areas that they wish to seek legal advice on / gain legal services for. By doing so, it allows for there to be a transparent relationship between the client (start-up business) and lawyer. Try and select a law firm who offers a fixed fee contract which eliminates the risk of unexpected costs.
Build a relationship
As mentioned earlier, it is vital to hire a lawyer whom you connect and feel comfortable with. By failing to do so, you run the risk of obtaining lacklustre strategic advice if the communication between client and lawyer is absent. It is important that there is strong communication so that both parties can understand each other’s operational environment, which encourages deeper conversations and understanding. Especially when first starting out, it is ideal for startup lawyers to become actively involved with the business and their objectives so that they too feel a part of the team / project.
Why do start-ups need a lawyer?
Whilst many believe startups are not established enough to hire a lawyer during the early stages, it is considered best practice to do so. Why? Well just because they are a new business does not mean they don’t have legal requirements that they may require assistance with. Trademarking the business model or name is just one example of how a lawyer can be of assistance to a startup business. Being a new business generally also means there are a number of new contracts that need reviewing, whether that be with suppliers, manufacturers or even future employees. In fact a few legal issues that may require the help from a commercial lawyer includes registering a business (or any licenses or permits that may be needed for the business to fully operate), tax, liability cover, and capital just to name a few.
LegalVision is an ideal law firm to reach out to if you are a startup business due their cost certainty business model which ensures that all clients are charged a fixed fee rather than being charged an hourly-rate model. Furthermore, the team at LegalVision are committed to delivering their services within time frames that are preferable to each client. These small factors assist in ensuring that a unique and trusting relationship is formed between the lawyer and client. LegalVision’s team of specialist startup lawyers will help navigate you through the legalities of setting up and funding a business as well as dealing with any intellectual property matters.