What Does a Lawyer Do for Startup Businesses?


A startup lawyer assists entrepreneurs in handling all the legal processes related to a startup. It can be difficult to create and eventually scale a startup as a legal entity. Further, securing funding, drafting and modifying contracts, investing, negotiating, and managing all legal documents add to the overall complexity. Therefore, it is vital to get the help of an experienced legal professional who has in-depth knowledge to handle all these responsibilities.

In-depth Overview of How a Startup Lawyer Can Help

Startup attorneys are known for helping organizations with a wide variety of issues, big and small.

  • Business Formation
  • Drafting Legal Documents
  • Contract Review
  • Lease Guidance
  • Employee Stock Options

Business Formation

One of the most important roles that a startup attorney plays is to help in business formation. The attorney will analyze and evaluate whether your company complies with the laws and rules of the relevant government agencies. Your lawyer will discuss these initial matters with you before officially forming the business so you can be sure you get the ideal organizational structure for you.

Some of the business entities that startups can choose from are C Corporation, Limited Liability Corporation (LLC), and S Corporation. Visit a website to develop an understanding of which business entity will best suit your startup.

Drafting Legal Documents

Legal compliance is essential for businesses and companies, and having quality legal documents is key to that compliance. A startup lawyer will help draft legal documents that comply with state and federal laws. Some of the key types of contracts include investment contracts, founder’s agreements, employment contracts, privacy policies, services contracts, and Software as a Service (SaaS) agreements. These contracts require detailed analysis and legal knowledge for proper drafting that will suit the requirements of the startups.

Contract review

If your startup is set up properly, it may prove to be the biggest asset you have. Going forward, having a business attorney review every contract you enter into, will also prove to be a huge benefit. As some of the contracts you enter will be drafted by the opposing party, reviewing these will be critical.

Lease guidance

As your startup may require commercial space to boom, entering into the proper leases is a big deal. It can be simplified by taking help from a startup lawyer. An attorney will better analyze the agreement and will be in the best position to see any potential pitfalls contained therein. Knowing your attorney reviewed your contracts will not only give your business security, but it will also give you peace of mind.

Employee stock options

As startups are new businesses, they often do not have enough money to hire enough employees to provide essential business needs. Therefore, a new business can invest in employee stock options which will prove to attract candidates in place of high salaries. A business lawyer will help you better understand how these stock options work and how to deal with any complications that may arise. These attorneys are well versed in the laws governing startups.

Comments are closed.