At the most basic level, start-ups need lawyers to help them deal with three groups:
- The government. You don’t want to violate laws. You also need to be sure you are doing business in a way that doesn’t create unnecessary tax liability and that you pay the taxes you owe.
- Third parties and the public. It’s essential to make sure you take reasonable steps to control risk in your interactions with customers, suppliers, users, employees, and the general public.
- Each other. When multiple people form a company together, it’s best to establish the rights and expectations of the founders upfront in case there are disagreements down the line.
The most likely times for start-ups to get lawyers involved include:
- Incorporation and forming a business entity
- Hiring employees
- Negotiating contracts with customers and suppliers, including establishing terms of service for websites and license agreements for software
- Raising capital
- Obtaining Intellectual Property Rights including protections of business names, logos trademarks, copyrights and patents