When is the right time to hire a lawyer for your startup? When working with very little capital, hiring an attorney may feel like a redundant expenditure. But, what do you have to say if those lawyers will save you a lot of money?
That said, lawyers may not be essential for every startup, but they are necessary in some cases. The tricky part is to know when you need them and when you don’t. So, if you want to find out the reasons in which an experienced attorney can save your limited startup capital, read on and find your answers:
1. To Formulate Employment Agreements
Many startups, especially IT companies, rely on the knowledge of their employees as some of the most critical assets for their success. Inevitably, many employees will join and leave the company, and it is essential to protect your company secrets so that your competitors do not take them over.
With a criminal attorney, your business gets the benefit of white-collar defense, including corruption, embezzlement, corporate espionage, intellectual property theft, trade secret thievery, whistleblower lawsuits, and more. For this reason, criminal lawyers at Hickey & Chung suggest business owners work alongside trained attorneys to secure their businesses’ interests.
Also, when your employees agree to non-disclosure agreements, but they fail to follow the terms they first decided upon, you’ll need a criminal attorney to defend your claims.
2. When You Need to Make Negotiations
How do you make an argument? Do business conflicts make you feel anxious? Do you avoid or fear them? And when you argue, do you usually win? Think for a second about how you deal with an official conflict. Know that conflict resolution is the answer to any negotiation.
Expert or trained attorneys excel in dealing with conflicts. They know when to employ pressure during the negotiation and compromise with the conflicted party. Additionally, they know the importance of an amicable negotiation in a hostile situation and how it will affect you and your business in the future.
3. Choosing Your Business Structure
The business structure you choose for your startup will continuously impact your taxes, investments, and other financial aspects of your business. Should you build your business on an LLC? Would a C-Corp or S-Corp be a more suitable choice for your long-term goals?
When hiring an attorney, they will ask you about your existing business setup and business plan. They will also suggest the importance of choosing the proper structure as they can get you to pay low taxes while you get the highest value. And, if with your hard work, your business begins to thrive, they will also advise you when to revise your business structure, which is a common occurrence if your business model is based on LLC.
How much of your business software is covered under copyright protection laws? Do you have to file the paperwork to confirm you are covered? What will you do if your business software becomes public or is stolen by your competitors?
A knowledgeable attorney will walk you through the laws that protect your business against theft. It doesn’t matter whether your product is physical or digital, or financial software. There are laws that will protect your interests and your company’s, and your attorney will simplify this process for you.
To Sum It Up
When you are a startup owner, you have many legal responsibilities. To deal with all these legalities, you will need to work with an attorney who is well versed in the language of the law. Moreover, with their assistance, you can make some wise decisions that will help your business thrive in the long run.