We have an idea that whenever someone around us starts a business, what they focus on the most is either delivering the service or getting the products out. There is no denying that solidifying your business should be the topmost priority, however an entrepreneur should always be aware of the legal difficulties that may arise later on. From the formulation of a business strategy to registering the business name, everything that you do in a business has a lot to do with legal practices. Needless to say, you need to consult a startup lawyer sooner or later, because if you don’t, you might have to face severe legal implications. If you are setting up a startup and are confused about all the issues that require a lawyer, we are here to help. Here are some of the mandatory reasons you need a startup lawyer, but be aware that many more can arise at any point of your business.
Incorporation & Partnerships:
Incorporating a business means that you create a separation between the business and the entrepreneur itself. Simply put, any personal liability or debts won’t interfere with your business’s, if you have registered as an incorporation. To help you understand it better, think of your business as an independent vessel that holds access to a lot of important stuff, including the taxes, contracts, employee induction, etc. Whatever transaction you will make will relate to the business, and not you as a founder. It might not sound that important in the beginning, but it is. Hence, there are several forms of business organizations. including Limited Liability Corporation, Sole Proprietorship, Partnership, or a corporation. A business lawyer Sydney CBD will be able to tell you, under which incorporation does your business fall into based on the structure, goals and future plans of your company. Similarly, you will need a lawyer to help draft agreements, if you are in a partnership with someone. In order to avoid any conflicts in the future, it is mandatory that both the parties come under corporate bylaws and operation agreement. Everything, including the decision-making, profit sharing, equity splits, etc. will be divided legally between the parties. Hence, the need of the lawyer.
Protection Of Idea & Brand Identity:
Whenever someone begins a startup, it all starts with a new idea. This is why, it is necessary that you protect the core of your business. In case you have invented something and it is patentable, an experience IP lawyer will be able to walk you through the process. Remember that the protection of the idea should be your topmost priority, because you might end up facing an idea or intellectual theft and without any legal argument to support you, you can lose the case. Moreover, if you have a lawyer, he will also be able to better guide you about the disclosure of your idea to any third-party entities. What we mean here is that it is better if you sign a confidentiality agreement with whichever organisation or individual you are revealing your idea to. Just as the idea needs protection, the identity of your business needs that protection too. If you are establishing a business, then you must be spending a good amount of time everyday to establish a good identity through a proper name and a logo. Hence, contacting a business lawyer will also ensure that the brand is trademark registered, so no one is able to blatantly copy it. While it might seem easy, but the trademark applications are rejected whenever there is even a slight confusion with any other brand name. Only a proper lawyer will be able to get you through such problems.
Even if it is a startup, you will need employees to take on the different required job roles. For that, you might have to acquire agreements that ensure that a certain employee has come under a contract to work with you. These agreements can be contracts that ascertain that an employee has to work with you for a certain amount of time and cannot work with a rival company immediately after leaving you. All the intellectual property protection and the rights will be dictated by a proper business lawyer.