Does Your Startup Need To Hire A Lawyer?

Startups do not always need the help of an attorney or at least not all the time. It is really important to understand that in many cases we are faced with a subjective choice. According to a criminal defense attorney in Houston, TX, it is very important to realize that in some cases the services of the attorney are highly valuable while in others this is not actually a necessity. With any criminal felony charge it is vital to hire an attorney but with the startups things are different.

A startup does not need to have legal support. However, understanding the situations in which this is a real need is mandatory. This is what we will focus on in the following paragraphs.

Startup Formation

In most situations the lawyer is not necessary when the company is set up. It can be strong overkill when one is used. The exception is when equity rights have to be sorted or when legal advice is an absolute necessity because of corporate structure needs or having many employees. Even so, advice offered by the lawyer can be totally separated from execution. Saving money by just getting legal advice is a true option for entrepreneurs.

Staff Needs

In many situations the choice is based on value judgment. Employment agreements are quite hard to modify after the parties agree. However, the document is not difficult to draft out. It is good to have a standard employment agreement set up. The situation in which you almost always need lawyer help is that in which you do not start with employments as you use the services of contractors.

Lawyers For Startup Founders

The startup founders do not always need the services of an attorney. When there is one founder that holds most shares, it is the individual that has control. Other founders can benefit from receiving legal advice. Not much different will appear but lawyers help a lot in alleviating and clarifying details related to power in the company. When all founders have equal shares, everything is connected to trust. In this case negotiations between parties will decide everything. Lawyers would only really be needed at a consultancy level.

Respecting Regulations

Whenever having to deal with regulations you need to be sure that you contact an experienced business attorney. Any mistake in this case can lead to huge problems for the entire company.

Seed Funding

In the event that seed or angel funding is needed, there is no debate about the need to hire an attorney. The investors always have different agendas. All the investment documents tend to be technical. A lawyer can understand everything since they often deal with such documentation.


There are not many cases in which the startup founder is absolutely needed. However, in almost all situations it is better to at least get advice from the business attorney. This specialist knows absolutely everything about law and will almost always help to make the very best choice possible. You need to be sure that you always make informed decisions as a startup owner. If this is not the case, huge problems are going to potentially appear.