When starting a business, the question most people ask is: does my start-up need a lawyer? Should you start a business without one, save capital and hire one later when a problem arises? Whether or not you need a lawyer for your start-up business may depend on the type of business you’re starting. However large or small your base of operations may be, having a lawyer on hand can help you steer clear of the legal mishaps that most businesses encounter.
Consulting a business lawyer sooner rather than later is what separates the more successful entrepreneurs from those that don’t make it. Entrepreneurs require legal services in order to protect themselves from personal liability for business obligations and business debts. Because a business consists of many shifting parts, the legal elements involved in running a business may be harder to navigate. Start-ups only need lawyers when they provide value-driven solutions for specific problems the start-up is facing.
When You Might Need a Lawyer for Your Start-up
With any start-up, hiring a lawyer will be a given for properly managing your company’s responsibilities regarding employment contracts or tax. The goal for any business is to maximise profits and minimise liabilities at all costs. Here are some of the reasons why your start-up might need a lawyer:
- Legal contracts are a norm for businesses as many involve agreements between employees, investors, and partners, all of which need legal assistance.
- Making sure that the start-up is following all the legal requirements.
- With a business lawyer in place, this eliminates learning unnecessary legal processes.
- Interacting with third parties such as suppliers and customers comes with risk, a lawyer can assist with such.
- At the heart of a business is an innovative invention or idea, and this is important that you protect this intellectual property. This applies especially to your logo, since registering it will eliminate a lot of red tape.
- Most business models make use of a website and this is where user agreements come into play. These include details such as disclaiming links to third party sites and disclaimers of warranties by the website.
Red Flags Entrepreneurs Should Be Aware of When Working with a Lawyer
Legal services for entrepreneurs running a start-up is needed. However, it’s important to find the right fit for your business. Having a business lawyer that doesn’t understand your business model or way of operating will make it harder for them to represent your interests. It’s important to work with an experienced lawyer as working with someone learning how to do something on your time and money isn’t cost-effective.