Before we can talk about whether or not your startup business requires a lawyer, we need to establish exactly what a startup is.
Imagine you have an idea for a business. And you have everything you need to start it: a plan, passion, determination.
The only thing you lack is funding. 🙁
To get this funding, you could sell shares in your business to other people. If your business takes off, you can pay them a certain percentage of your profits.
The difference between a startup and a small business is that a startup has the ambition and the drive to become bigger and more profitable.
The reality is that most businesses (including startups) don’t require a lawyer.
More often than not, hiring a lawyer will be a waste of money.
The business owner can often sort out everything related to law (e.g., trading standards, taxation). Much of this doesn’t require particularly in-depth knowledge, and you can easily research most of the information.
As well as costing you a lot, a lawyer might overcomplicate things.
However, in some situations, you may need a lawyer for your startup
Those situations could include:
- If a customer has accused you of breaking trading standard laws and you know that you haven’t. It could be wise to hire a lawyer to ensure you don’t get wrongfully punished.
- When the government has taxed you too much and refuses to give you a rebate.
A lawyer can take the state to court and ensure that you get every penny owed. Read more on how a tax attorney can help you here.
However, even in the examples above, it could be worth asking if it’s worth paying for a lawyer. They may cost you more than if you just left things as they were.
What other situations might require a lawyer?
Another situation where you might require a lawyer is when it comes to agreeing with who gets what in terms of profits. There may be disputes between the business owners or between the owners and shareholders.
Also, consider hiring a lawyer when incorporating other businesses into your startup, hiring employees, negotiating contracts, and copyrighting intellectual property.
Remember, a lawyer isn’t necessary most of the time and won’t provide you with anything other than advice.
However, in any case, if you have decided that you need a lawyer for your startup, be careful!
You need to hire a competent lawyer who knows what they’re doing. Who doesn’t charge you more, and who doesn’t charge you any hidden fees.
You should find an affordable lawyer here.
The majority of all businesses – startups included – don’t need any lawyers as they won’t be able to provide anything that you can’t find via Google in an hour or so.
However, if you need one for your startup or small business, make sure you’re going to an experienced lawyer who will provide good value for money.
