- 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
Flat-rate Legal Documents for Early-Stage Startups
Let Us Help
Set yours up today.
Reviews And Testimonials
Client satisfaction is our highest priority; just ask our clients.
Jay was calm, encouraging, and developed a brilliant and simple strategy on how to get my money back. His strategy was successful. I got a 100% refund, and additional negotiations yielded additional benefits.Bradley C.
Jay Hermele and his team fought for me and recouped my money that I lost to a corrupt business partner. Thank you so much Jay and folk for your consistency.Tom M.
Jay went up against one of the toughest law firms in Denver for me. He owned it while still being conscientious about my risks and expenses. He’s very sharp, tough and ethical. I’d recommend him highly!Kurt B.
Tell us about your issue, and we will respond promptly.