Every new business is launched with success in mind. However, hoping for success and setting yourself up for it are as different as night and day. The latter requires strategic steps that lay the groundwork for long-term prosperity.
Cobb Cole’s business law attorneys advise and represent new companies and startups at all stages of the business life cycle, helping them navigate legal complexities and providing expert guidance from inception to succession planning. Our clients receive a personalized approach and creative, cost-effective solutions that minimize risk and maximize a new business’s potential.
7 Benefits of Legal Representation for a New Company or Startup
Working with a business law attorney as you start a company is critical for many reasons, including staying compliant, making prudent financial decisions, and gaining wisdom on risk mitigation. You can benefit greatly from hiring an experienced startup lawyer long before you open for business. Here’s how.
1. Drafting Enforceable Contracts
Business startups typically need a variety of contracts, including founder and shareholder agreements, employment contracts, non-disclosure agreements, and supplier and vendor contracts. New business owners can run into trouble when drafting contracts on their own with many potential missteps, including without limitation overly general definitions, incorrect timelines, and unclear liability limitations. Any one of these errors can be expensive and expose an early-stage startup company to lawsuits.
A skilled business law attorney assists by drafting contracts that are tailored to your business needs…
2. Developing a Solid Business Structure
Seasoned startup attorneys have expertise in various business types, allowing them to tailor their advice and services to your unique needs. From setting the business up with the best corporate structure to providing guidance on local, state, and federal regulation compliance, they are crucial in establishing a business foundation that supports growth, minimizes tax liabilities, and reduces the risk of future legal disputes.
3. Mitigating Risks and Legal Issues
An important aspect of any business attorney’s job is mitigating risk. They’re skilled at identifying potential problems before they arise and help entrepreneurs determine how to limit or reduce exposure. Four types of risk mitigation are:
- Risk acceptance
- Risk avoidance
- Risk limitation
- Risk transference
Every new business venture comes with a certain degree of risk. A thorough business law attorney helps you identify how much risk you’re comfortable taking on and shares ways to avoid simple mistakes that could lead to legal problems.
The possibility of litigation from day one isn’t something most startups anticipate. However, things often go wrong before, during, and after launch (whether your fault or not). For instance, disputes over intellectual property rights, contractual misunderstandings with clients or suppliers, and even employment law compliance issues can arise unexpectedly, posing significant challenges to a budding business.
A skilled business attorney can help you to prevent many lawsuits from occurring, advising you on how to, among other things:
- Avoid employment disputes.
- Develop cybersecurity protections that ensure compliance.
- Protect intellectual property.
4. Saving you Money on Legal Representation
How much you need to invest in legal counsel for your startup depends on many factors, but hiring an outside business law firm is often more cost-effective, particularly in the early stages:
- Lower overhead costs. Startups often have limited budgets. Engaging an outside business law attorney eliminates the full-time salary, benefits, and other employment-related expenses associated with in-house counsel.
- Flexibility and scalability. As your business grows, its legal needs will inevitably change. A business law team allows for flexibility and scalability without the commitment of an in-house legal team.
- Network and resources. External attorneys often give you access to extensive networks and resources such as referrals, partnerships, and additional support services that you’d pay more for if you hired them individually.
Of course, as your business grows, in-house counsel could become a necessity. However, in the early stages, working with a firm specializing in business law is often a more practical and financially viable option.
5. Protecting Intellectual Property
Your startup’s intellectual property, be it a patent, trademark, or copyright, is one of its most valuable assets and must be rigorously protected. Cobb Cole’s business law team assists in:
- Identifying intellectual property, including inventions, designs, brand names, trade secrets, and proprietary processes.
- Intellectual property (IP) registration and protection.
- Drafting of IP agreements.
- IP portfolio management.
- Enforcing IP rights, including litigation when necessary.
- Strategic IP counseling.
- Transactional due diligence, ensuring IP assets are correctly valued.
Protecting your business’s IP ensures a competitive edge, attracts investment, and can enhance company valuation. Given IP’s complexity and importance in today’s business landscape, the assistance you receive from a business law attorney ensures your innovative ideas and brand identity are secure.
6. Negotiating With Vendors or Business Partners
Negotiation is an essential skill for business success. A skilled business attorney can be pivotal in ensuring fair terms, protecting your business’s interests, and fostering legally sound relationships. Some of the services they provide include:
- Drafting and reviewing vendor and partner contracts.
- Providing legal guidance on the implications of various contract terms.
- Negotiating for more favorable terms than you might achieve on your own.
- Identifying potential risks in agreements, including termination clauses.
- Ensuring compliance with relevant laws and regulations.
- Drafting non-disclosure agreements to protect sensitive information.
- Providing dispute resolution strategies that avoid litigation.
By drafting fair and transparent agreements and contracts, a business law attorney helps you build and maintain positive long-term relationships that help you meet your goals.
7. Boosting Your Business’s Value
The attorneys at Cobb Cole can represent a broad range of entrepreneurs in various industries, including real estate, healthcare, finance, technology, retail, and more. They specialize in companies just entering the market, helping them successfully navigate leases, employment contracts, securities offerings, SEC compliance, technology transactions, and financing, among other things.
Our legal services for new companies and startups go far beyond mere legal compliance and extend into strategic business development, helping you:
- Choose the right business structure (LLC, corporation, partnership) based on fundraising abilities, tax obligations, and scalability.
- Protect patents, trademarks, and copyrights, which are critical assets for valuation.
- Explore funding and investment options.
- Develop exit strategies that maximize return.
- Build credibility with stakeholders.
Our goal is two-fold: protecting your new business from legal pitfalls and contributing to its strategic positioning, operational stability, and overall attractiveness in the market. We want to be your trusted partner throughout your business journey. Contact us online or call 386-255-8171 to learn more or to schedule a consultation.
