Are you getting ready to launch your new business? It helps to be prepared. Make sure you click here to learn 5 times you need to hire a startup attorney.About 550,000 people start their venture as an entrepreneur every month. Each one of these people begins with a dream of making their idea a success. However, many of these people will make a huge mistake. They will fail to hire a startup attorney. Don’t make their mistake.
Here are four crucial reasons you need to have a startup attorney on your team.
1. During Formation
For most startups, it will be overkill to hire a lawyer for formation. It is relatively easy, and you can do the paperwork yourself. Consult with an attorney about the benefits and consequences of choosing one corporate structure over another.
However, there is one big exception to this generalization. If founders and investors come together at the start, then you need the assistance of a lawyer to sort out the equity rights.
2. Dealing with Intellectual Property
Every startup has some form of intellectual property. On a basic level, you need trademarks to protect your brand. You need a lawyer to help you protect every aspect, such as name, logo, distinctive colors, and any combination of marks that identifies your company.
Beyond this, many startups need to protect the IP that is the core of their business. An IP lawyer will help determine what can be protected and if you should file for protection. Artistic endeavors are protected under copyright law. This would be any unique written word, artistic creation, or musical piece.
Patents protect inventions. This could be a utility or design patent. If you don’t want to disclose every detail of the inner workings of your invention, then you may want to keep it a trade secret.
An IP lawyer will help guide you, explain each option, and prepare the necessary paperwork for the protection that you choose.
3. Hiring Employees
It is quite challenging to change an employment agreement once both parties agree to one. So once you decide to start hiring employees, have a rock-solid contract at the ready. You also want to make sure that you follow workers compensation laws. Each state has specific requirements, and if you don’t follow them, you’ll be paying for it later.
Choose not to consult an employment lawyer means you will pay dearly later when you need to hire a law firm to represent you in employment litigation.
4. Following Federal Regulations
Do you plan to start a business in a heavily regulated industry? Then you need to run to a lawyer from the moment of inception. Industries such as medical, financial, or fintech all have strict regulations that you must follow.
These lawyers are worth every penny since it is their job to know every detail and every new development. You need to focus on your startup, not on learning regulations.
If you choose to go it alone, you risk spending much more than you anticipated. This could be from last-minute expenses incurred from sudden changes that are needed to comply with a law you weren’t aware of. Or it could be from high fines incurred as punishment for not following the requirements.
Hire a Startup Attorney Today
Are you in the process of creating your startup? Then chances are you will need a startup attorney four at least one of these four reasons. It may seem like an unnecessary expense right now, but the investment will ensure your company will save later on.