Why Every Startup Needs A Business Lawyer From Day One
Posted February 25, 2025 in Uncategorized
Starting a new business is exciting, but your success often rests on the legal framework you choose for your business and the legal protections you have in place. From regulatory compliance to taxes and zoning, the benefits of having a business lawyer for your company go beyond the first day you open your doors. The attorney you used for your LIttleton, CO business formation lawyer can often help you avoid common legal pitfalls new business owners could fall in, provide ongoing compliance and risk audits, and answer your legal questions as they arise.
If your startup doesn’t have a business lawyer now, you could be missing valuable protection that could cost your company a lot of money. Let’s explore why having a business lawyer as a start-up entrepreneur is important.
Business Structure Selection
Business formation lawyers advise start-up founders on the right legal structure to accomplish their business goals, considering critical factors like taxation, future growth potential, and liability. Considerations of going public or developing franchises can be addressed when determining the right business structure.
Contract Drafting and Review
Every business needs contracts. Contracts are required for supplies, advertising, and vendor arrangements. Your attorney drafts your own contracts and reviews any presented to you to ensure they meet your interests. As your business grows, your attorney can renegotiate contracts for more favorable terms and protect your business interests in cases of breach of contract.
Intellectual Property Protection
Your start-up’s intellectual property is your trade secrets, lines of code, client list, and brand logo. Placing the right IP protections, including registering trademarks and copyrights, ensures that your brand isn’t diluted by misuse, or that your unique product or service isn’t illegally appropriated. When you’re an innovator, you need solid IP protection and defense. Your business lawyer can identify intellectual property that requires legal protections, register it a the state and federal level, and monitor your IP to reduce the chance of theft or illegal duplication.
Regulatory Compliance
Depending on your industry, there may be specific regulations to follow. Each industry is different, although all share the same requirements for employment and EEOC compliance. Your attorney can explain your obligations and guide you through your required compliance procedures and any required reporting to avoid fines and other legal penalties.
Fundraising Support
New business growth, start-ups especially, often requires additional funding. Your attorney draws up a partnership and investor agreements, team sheets, and other legal documents necessary to protect all involved and streamline your fundraising process. For non-profits, following the legal protocols for fundraising is even more important. Your lawyer helps you serve your mission by ensuring you’re compliant with state nonprofit regulations.
Dispute Resolution
Legal conflicts or disputes that cannot be settled between the two parties often require litigation. Being prepared and proactive can help improve your chances of winning and prevent unpleasant surprises. A business lawyer, even one who advises on an as-needed basis, can alert you to potential legal problems and represent you in the matter.
Although it may seem like an added expense, a business lawyer from Volpe Law, LLC is well worth the investment for a start-up entrepreneur. Our savvy business lawyers can act as outside counsel, guide entrepreneurs through business formation, and help ensure their businesses operate smoothly.