It’s understandable to feel confused and intimidated if you’ve never worked with or hired a lawyer in your life. However, when you’re in the process of building a startup business, having a lawyer is vital. For one, you will feel secure knowing that you’ve got all your legal issues planned out and addressed, so you could focus more on the business side of your trade.
Why You Might Need a Lawyer When Building Your Startup
In general, startup businesses will require legal counsel in the following situations:
- When establishing your business identity — corporation or LLC — in order to safeguard you from potential business liabilities.
- When establishing equity and ownership rights of your business, applicable if multiple founders are involved.
- Making certain that your intellectual property is properly owned and safeguarded by your business, most especially if independent contractors are involved in development.
- Making certain that you’re much aware of the tax implications of everything you do, specifically when giving equity to other people.
In addition, business attorneys in Denver and other parts of Colorado noted that you would also benefit from legal counsel when dealing with the following entities:
- Your business partners – When several individuals decide to build a company together, it's best to establish expectations and rights right off the bat in the event that disagreements arise in the future.
- The public and third parties – It’s crucial to ensure that you understand risk and risk mitigation techniques when interacting with your clients, employees, users, suppliers, contractors, and the general population.
- The state and federal government – You wouldn’t want to break business laws so you must make certain that your business operations won’t create potential tax liabilities and that you pay all your taxes in a timely manner.
If you could navigate these legal issues perfectly and confidently, then you could go without a lawyer. If not, then you need to determine the legal requirements of your startup and find the best person to address those.