Did you know that there are 10853 licensed attorneys in South Carolina? While some specialize in more traditional areas like criminal law, environmental law, or intellectual property, others are experts in the booming business of startup law. A startup lawyer helps advise innovative, quickly growing companies on how to maximize their business.
Hiring an attorney as you are starting a company is crucial to stay compliant with the laws, make financially prudent decisions, and gain valuable advice about risk mitigation. Read on to learn the 10 benefits of hiring a startup lawyer for your new business.
1. A Business Lawyer Will Help You Draft Airtight Contracts
Contracts are an essential part of any business. Whether they are between employer and employee, business and vendor, or customer and business, a contract provides the essential terms of what is being exchanged, for how long, and any associated costs.
New business owners often run into trouble when drafting their contracts. They may fall into the trap of using overly general definitions, unclear limitations on liability, or incorrect timelines. These mistakes are expensive and can expose an early-stage startup company to lawsuits.
Hiring a skilled business lawyer will assist you in contract drafting to ensure there are no missing parts in the agreement. They will understand what you want to communicate, and write in a way to protect your business.
2. A Startup Attorney Can Provide Expertise in Specific Types of Business
Though there are general startup attorneys, business lawyers can specialize in their niche and become experts in certain types of industries. For example, you can hire a business lawyer specializing in the medical field, hospitality, or technology. Finding a person who knows the language of your sector will allow them to dive into the needs of your business.
When interviewing potential startup lawyers, do not be afraid to ask about the types of clients they normally work with. This will give you a sense of if they have worked extensively in your industry.
3. The Startup Attorney Will Help Your Startup Company Develop a Solid Business Structure
One of the most important components of growing an early-stage startup company is setting the business up with the right corporate structure from the get-go. There are pros and cons for each business structure, and consulting with your attorney can help you identify what is best for your business goals.
Examples of structures include sole proprietorships for the sole business person, partnerships if someone else is joining the venture, and professional corporations for bigger business ventures. Your business lawyer can answer questions and help you way the benefits of each structure.
4. Preventing Lawsuits Saves Money in the Long Run
Litigation is an expense that many startup companies do not anticipate. However, the reality is that things go wrong, and efficient solutions are needed to fix them. Business lawyers often charge between $100- $400 per hour, and if a case goes to trial, these attorney's fees can grow very quickly.
A skilled startup attorney can help you to prevent many lawsuits from even occurring. By advising you to do things like avoiding employment discrimination, addressing your cybersecurity to ensure compliance, and protecting your intellectual property products, they can save you from high expenses.
5. It Is More Cost Effective to Hire a Business Lawyer From the Beginning Than Once Problems Arise
Some business owners believe that they are immune to problems. They feel that things like structuring their business and drafting contracts can easily be done independently and that hiring a lawyer before problems arise is a waste of money.
This theory could not be further from the truth. Taking complex business tasks independently puts a business person in a ripe position to make expensive mistakes.
Imagine this- you draft a contract with a technology vendor, promising to purchase 100 laptops per month for your business. However, you made a typo and had only wanted to make a contract purchasing 10 laptops per month.
What happens next is ugly. You must breach the contract, and pay any associated damages in a settlement. Having a skilled lawyer to advise your major business actions is a great way to avoid liability.
6. A Startup Lawyer Will Help to Mitigate Risk within Business Law
One key aspect of a lawyer's job is to mitigate risk in any aspect of the business. They will look for potential problems before they arise, to determine how to prevent them from happening.
When it comes to risk mitigation, the four types include risk acceptance, risk avoidance, risk limitation, and risk transference. The reality of being in the business world is that some risks will always be present. It is a good lawyer's job to consult their client on how much risk they would like to take on, and how to avoid predictable trouble.
Since skilled startup attorneys have seen a lot of things go wrong in other business clients, they can help you to avoid simple mistakes. The team at De Bruin Law firm can help to foresee problems before they happen with their renowned. General Counsel Legal Service for Businesses.
7. They Will Be Your First Line of Defense if Lawsuits Arise
Though preventing lawsuits is very important, they are sometimes unavoidable within the business world. Many small startup companies have a small team, often which does not avoid a full-time lawyer. This is why hiring an outside startup attorney that you can consult on these matters is essential.
Since the startup lawyer would have been working with you for a while already, they know your goals and the structure of the business. They can advise based on what they know about your style, and not provide cookie-cutter advice that would apply to any business. Having this personal relationship is invaluable when times get tough.
8. Hiring an Outside Startup Attorney Is Cheaper Than Having an In-House Counsel
As businesses grow, they often hire In-House Counsel to work directly for the company and advice on legal matters. While this is wonderful for more developed companies, these salaries run an average of $241,325 in the United States.
Though hourly rates of startup attorneys may seem overwhelming, they are a fraction of what you would pay for someone full-time. Invest the money upfront, and it will pay dividends long-term. Finding the right startup attorney depends on business to business, but we can assure you that the right fit is out there for your budget and the expertise that your business seeks.
9. Startup Lawyers Will Help Protect Your Intellectual Property
Intellectual property is a work or invention that is the result of creativity. Whether it is a patent, trademark, or copyright, it is something that an individual has created and must be protected.
Many new startup lawyers create excellent inventions and ideas for their businesses. Without the proper intellectual property protections, those things can be stolen. Even if your business lawyer is not an intellectual property expert, they can assist.
The legal team at De Bruin Law Firm has a Trademark expert who would love to help with your business. You can protect your valued business with a company trademark, to ensure that everything is your property. This South Carolina firm is known to provide excellent service throughout the business law world.
10. They Can Advise You in Negotiations With Partnering Businesses or Vendors
Negotiations are an essential skill for succeeding in the business world. Nothing is quite as it seems, and there is always a deal to be made. Having a skilled lawyer on your side will help you to get the best deal in every situation.
Negotiations and mediations are now the preferred methods of settle disputes. A full-blown trial is becoming rarer in the legal world, as these mentioned methods are far more cost-effective. They also provide a stronger level of certainty that both sides may be satisfied with the outcome.
Now You Know Why to Hire a Startup Lawyer for Your Business
Thank you for reading this guide with us today! We hope you now understand the incredible impact that a skilled startup attorney can make on your business. Whether you need assistance with contract drafting, risk mitigation, or negotiations, a business lawyer can elevate your startup business to the next level.
Our team at De Bruin Law Firm is the legal counsel that you can trust for your business. We are three skilled attorneys, and service the Greenville, South Carolina region. Please contact us today to learn about how our firm can help your startup venture through a startup lawyer.