Accessing Effective Legal Support
• 25 Jan 22
Accessing Effective Legal Support
Startup companies have taken over the world of commerce as young and fresh minds continue to innovate and develop their ideas. The goal is to get to market as quickly as possible, but there are certain steps in developing a business that cannot be overlooked. Seeking out and accessing effective legal support is a critical step in ensuring a start-up has laid a solid legal foundation, and could be the difference between its success and failure.
In this article, we take a look at the role a lawyer plays in helping a Startup business become successful.
The power of a good lawyer
Professional and efficient legal support helps to ensure that business owners are equipped to navigate the intricate web of rules, laws, policies and regulations when entering into the market. Good legal support also ensures that a Startup's rights and finances are adequately protected.
Startups can gain access to good legal support by hiring reputable lawyers from experienced and well-regarded firms. In determining how professional a firm or lawyer is, business owners should consider whether:
● The firm employs lawyers with a wide range of expertise.
● The firm has a solid reputation backed up by references
● Previous clients have provided endorsements for their services
It is important to note that while individual lawyers may not have expertise within every area of practice, they may be able to delegate work to other subject matter experts within the firm. Though there is often temptation to cut legal spend and employ the cheapest lawyer around, bear in mind that a price can never be placed on sound legal advice.
Type of company
During the early stages of developing a Startup, a lawyer is needed to help in determining the best structure for your business. Sole proprietorship, LLC, PLC or Corporation – professional lawyers will help you decide on which structure not only suits your business goals, but best protects your personal interests and assets. A lawyer is also skilled in providing advice on the necessary legal requirements for registering your newly formed company.
Tax compliance is a crucial aspect of any Startup business. A lawyer is able to guide and assist in setting the business up with the necessary processes for complying with taxation laws. Do not forget that a good accountant is similarly a valuable resource.
A Startup founder may be well-versed in business concepts and goals, but there are certain risks involved within any business model. A skilled and experienced lawyer is able to pinpoint potential risks for the business and aid in implementing the necessary strategies to avoid them. They will analyse the business structure and the general risks associated within a particular industry, and identify the most effective preventative measures to manage business risks.
Licensing and Registration
Obtaining licensing, registration and authorisation to operate as a business entity can be tricky and overwhelming. A lawyer will ensure that all the necessary documents are obtained and submitted, as well as identify any red-tape associated with licensing and registration of a Startup.
Intellectual Property (IP)
IP is a sought-after commodity, most often found within the business concepts of a Startup business. By consulting with a lawyer, Startup founders are able to gauge the best method of registering and/or licensing their IP, ensuring their assets are safeguarded against fraud or theft.
Securing funding for a Startup business is one of the first and most pertinent goals on a founder’s agenda. Seeking legal advice for this step can be helpful, since a lawyer is able to advise on the most appropriate methods of investment and fundraising for the business and its, keeping in mind its financial goals and the company structure.
Contracts are necessary within any Startup business. Whether concerning investment contracts, founder’s agreements or goods and services contracts, it is imperative to seek legal counsel when drafting these legally binding documents before the start-up enters into agreements with any associated parties. Contracts exist to clearly state the terms and conditions of a business agreement, and to protect the business against any potential lawsuits and financial losses.
Website and data privacy
Most businesses make use of websites and social pages to operate and market their Startup. An online presence presents its own set of challenges, including risk of data loss and theft. A lawyer will assist in drafting the necessary documents to help support your business in its online presence by developing specified terms and conditions for website use, personal data and requirements for employees.
A lawyer will aid in drafting and reviewing the terms and conditions associated with shareholding within the business.
When it comes to legal basics, it can seem overwhelming at first. But, it doesn’t have to be. GLS offers a host of free Startup resources to help set you on your way. You can also browse our list of over 200 Legal Templates and Tools, to choose the products your Startup needs at each critical stage of business.
We also offer a wide range of subscription based Legal Support Plans created specifically for Startups who want a 360 degree service in creating their own virtual legal dept.
*The above content does not constitute, nor is it offered as, legal advice of any kind. GLS Solutions Pte Ltd is not a law firm and any support provided pursuant to this entity is not regulated legal advice or legal opinion.