Why You Need a Business Attorney During the Formation Process
White Summers works with founders to take their businesses from local to global.
Our team has helped some of the biggest companies, such as Tesla and Hotmail, go from a name you’ve never heard to a name you’ll never forget. But, why would you need an attorney so early in the formation process when you don’t even really have a business yet?
Avoiding Legal Pitfalls
The biggest reason to get a business attorney involved during the formation process is to avoid the many legal pitfalls that can doom your business before it even gets off the ground.
Have you done your due diligence to verify that all of the intellectual property you claim is actually yours and does not infringe upon the work of others? Do you have the proper contracts in place with investors and partners so everyone is on the same page? Have you chosen the correct business structure?
These are a few of the many legal questions you should be asking early in the process.
Drafting Contracts
A business is only as strong as its contracts. Are yours legally sound and accurate?
Contracts need to set expectations for how the involved parties will operate and what goods or services are being exchanged for what consideration.
The type of contracts startup businesses often need include but are not limited to:
Operating agreements
Vendor agreements
Employment contracts
Investment contracts
Loan agreements
Commercial rental agreements
Choosing the Right Business Structure
It might seem obvious to you and your partners what structure your business should take, but it’s important to choose the right entity. Each entity has its own tax considerations, liability protections (or lack thereof), and filing requirements.
Our most commonly recommended structures are limited liability companies (LLCs) and corporations, on the basis that such structures generally shield against personal liability for the founders.
Building Long-term Relationships
When you hire a business attorney early on, you build a strong working relationship that serves as the foundation for much more moving forward. We will align our representation to your needs and goals and adjust as those change. Contact White Summers if you are in the formation process of your business and have big goals for the future.
By White Summers