Benjamin Franklin, sometimes referred to as “America’s original entrepreneur”, is widely known for the quote, “An ounce of prevention is worth a pound of cure.” As you’re developing a business startup, this statement holds a lot of truth. Every business faces issues requiring legal assistance at some point.
The smartest way for an entrepreneur to save money, maximize their time, and avoid unnecessary hassles is to partner with a skilled business attorney right from the start to draft effective strategies.
Why You Need a Business Attorney for Your Startup
There are two professionals we suggest you have on your development team: an accountant and a business lawyer. While most entrepreneurs realize their need for an accountant, many take far too long to realize the importance of an attorney. Here are five legal discussions you should have to ensure your startup has a solid foundation.
- Determine entity choice: Your legal advisor will detail the pros and cons of corporations, limited liability companies, single entities, and other designations based on the scope of your business.
- Provide for name clearance: As you consider the name, identity, and branding of your startup, your legal team reviews options and checks for trademark violations.
- Outline the ownership structure: If there are multiple owners, your attorney can help establish the division of equity, decide how shares should be classified, arrange for the allocation of funds to all investors, and other essential aspects.
- Draft a buy/sell agreement: This is especially important if you have a business partner or multiple partners. Clarifying intent in the beginning avoids conflict down the road.
- Arrange a lease review: The last thing you need as your company prepares for launch is to discover discrepancies with the lease agreement or restrictions that prohibit your growth. A knowledgeable business attorney knows what to look for and how to rectify potential issues.