If you are the founder of a startup - you need a startup lawyer!
In this article, we'll look at the reasons why and give you some insight into how a startup lawyer can help your new business.
Author: Farrah Motley, Legal Principal of Prosper Law and a startup lawyer.
Startup Lawyer Can Help Define Ownership and Control
A startup lawyer can help you define ownership and control. In a typical startup, there are multiple people who will be involved in the company. The exact number depends on your business model and industry, but it could be anywhere from two to 20 or more people.
One of the most common issues with startups is that they do not have a clear process for defining who owns what percentage of the business, how much equity each founder holds, how much stock has been granted over time (i.e. vesting schedules) and what other payments are made to founders as part of their compensation packages for working at the company.
It is also very important to define who has control over key decisions such as hiring employees or making capital investments in equipment or facilities.
There are several documents that you can use to keep track of ownership, including a Founders' Agreement: This document outlines how much equity each founder owns; vesting schedule; terms regarding termination; etc.).
This should be signed by all founders before any start-up work begins so that there are no misunderstandings later on down the road when trying to figure out which founder owns what percentage stake in the company's success (or failure).
A Startup Lawyer Can Help You Avoid Legal Hassles
Put simply:
legal advice can save you money
legal advice can save you time
a good startup lawyer will help you avoid liabilities, disputes, headaches and future legal problems that could otherwise sink your startup
Startup Lawyer Can Offer Key Advice on Intellectual Property
Intellectual property protection is a very important part of any business, especially a startup. Startup lawyers can help you protect your intellectual property and ensure that it is reflected in any contracts you sign with clients or partners.
One of the most important things to consider when protecting your intellectual property is whether the idea can actually be patented or copyrighted. The law firm for startups will be able to determine if there are any legal issues with your idea before filing for either patent or copyright protection on behalf of their client.
Another way in which a startup lawyer can help protect your startup's intellectual property involves making sure that you do not infringe upon anyone else's legal rights.
Startup Lawyer Can Help Ensure Your Startups Compliance with Laws and Regulations
You’ve chosen a great business idea, and you’re ready to launch your startup. But before you do, why not get the legal help of an experienced startup lawyer? One of the main benefits is that they can help ensure your startup's compliance with laws and regulations.
The first thing a startup lawyer will do is make sure you have all the necessary licenses, permits and approvals from government agencies so that your business can operate legally. They will also advise on how to structure your operations in order to comply with tax law requirements. In addition, they will look at any contracts or agreements you will be entering into (e.g., lease agreements) as well as any intellectual property issues that may arise during operation (e.g., patents).
Importantly for any startup business, getting it right when it comes to employees is essential. This means having the right employment contracts in place, ensuring that any intellectual property that is generated is vested in the startup and employees are paid in accordance with any applicable Modern Award and the National Employment Standards.
A startup lawyer is an essential part of every new business
A startup lawyer is an essential part of every new business. Someone who can help you with any legal issues that arise as your company grows and develops is invaluable, but even more important is someone who can assist you in understanding the legal issues you may face before they become problems.
A startup lawyer should be able to provide guidance on:
company structure
intellectual property protection
employment law (including employee handbooks)
How can Prosper Law help?
Prosper Law’s legal services are provided by Farrah Motley, an Australian startup lawyer that provides legal advice to startups. We can draft employment agreements, provide the best startup legal advice, advise you on how to protect your intellectual property and establish your startup business.
Contact the team at Prosper Law today to discuss how we can provide you with legal services for your startup for a fixed fee or at affordable hourly rates.
Farrah Motley | Legal Principal
PROSPER LAW - A Commercial Law Firm for Businesses
M: 0422 721 121
A: Suite No. 99, Level 54, 111 Eagle Street, Brisbane, Queensland Australia 4000