Startup Lawyer
You have an idea that is going to change everything, and you simply won’t be able to live with yourself if you don’t pursue it. Perhaps you have even mapped out a business model, and begun validating the concept with some trusted connections. Or maybe you’ve even got an investor or two, and some paying customers. Wherever you are in the process, one thing is for sure: it is exciting, and maybe a little scary.
Startups are some of our favorite clients. Our founder, Jay Hermele, has founded both this law firm as well as a technology startup. For him, startup clients represent an intersection of his two passions—entrepreneurship and law. These clients offer an opportunity to see the very first seeds of exciting new solutions, and provide feedback in both a business and legal capacity.
Whether you are an entrepreneur just starting out, or a budding business with seed funding, you can trust The Hermele Law Firm to help you navigate legal hurdles, avoid pitfalls and risk, and chase that “hockey stick” growth for which all founders strive.
The following is presented for general informational purposes only, and should not be construed as legal advice. Your best source for information about your case is to contact an attorney.
There are innumerable legal pitfalls that new businesses face. Just like your startup needs a strong business foundation, it also needs a strong legal foundation. Many startups have failed before even having the opportunity to truly test the market due to legal issues at their inception. What are some legal mistakes that startup founders make? Here are just a few of the more common blunders:
- Unclear Ownership Stakes. One common—and easily avoidable—issue arises among co-founders who begin working in earnest on a business without clear documentation of who owns what equity in the company. This is easily addressed by having a startup lawyer draft corporate organizational documents.
- Choosing the Wrong Entity Type.The right entity type depends on the nature of your startup and goals of the founder or founders. The choice of entity can have great significance in terms of tax, governance, and flexibility down the line, so it is not a decision to take lightly.
- Not Vetting the Name. Before going all in on that perfect name, make sure that you can secure the domain name you want, and that your name would not be infringing on existing trademarks.
- Not Maintaining Proper Corporate Documentation. When something unexpected happens in your business, you’ll be glad that you kept thorough corporate records. Make sure that your governing documents, records of actions and other necessary documents are always maintained and updated when necessary.
- Failing to Investigate Licensure Requirements. Depending on the nature of your business, you might be required to secure licenses and permits from government authorities. Don’t risk running afoul of the regulators – consult with an attorney first.
- Failing to Investigate Intellectual Property Issues. If your business relies on a novel technology or invention, you want to protect it. Further, you want to make sure that your technology does not expose you to liability for infringing on someone else’s patent. Before you invest in building something that you might think is new, do your research. The United States Patent and Trademark Office is a good place to start!
- Failing to Use NDAs. While NDAs (nondisclosure agreements) are not always necessary and can even be off-putting under certain circumstances, other scenarios warrant their use. Having a beer with a potential investor? You don’t want to risk souring the relationship by flashing a contract in their face right away. However, if you’re working with an independent contractor to help build something where they have access to proprietary data? You should be adequately protecting your secret sauce.
- Using Bad Contracts. We’ll venture a guess that the sales contract you downloaded from a random internet site is not tailored to your specific business, and might not take into account your state and local laws. It is efficient to rely on form contracts in growing your business. However, you should make sure that the form you’re relying on was created with your business in mind. The investment you make in a solid form contract can make all the difference in terms of avoiding risks as you grow.
Business Formation Lawyer
A business formation lawyer gathers information about your business plan, and works with you and your co-founders to determine how to best structure your startup. This helps ensure that all founders are clear on their equity interests and contributions, and also helps to identify the best tax and governance structure for a new startup. Contact The Hermele Law Firm to make sure that your startup is built on a solid foundation.
Compliance
If you’ve had an idea for a startup, your first question might be, “Is anyone else doing this?” Your second question should be, “Does my proposed business model comply with the law?” A startup lawyer can help you determine whether your business concept is legal, and also helps you make tweaks in order to ensure you are operating within the confines of the law. These same principles are also applied to new product offerings as your company grows. The Hermele Law Firm can help you understand the legality of your model and all your offerings.
Flat-rate Legal Documents for Early-Stage Startups
We get it. No one starts out with millions in revenue. That doesn’t mean you don’t deserve high-quality legal documents. That’s why The Hermele Law Firm offers flat rates to early stage startups on common foundational legal documents.
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The Hermele Law Firm is a Business Law and Personal Injury Law Firm. We are licensed in the states of Colorado And Wyoming.
We're available to meet by appointment only.
69 W Floyd Ave, Suite 306, Englewood,CO 80110