how to choose a startup attorney

Why do I need a startup lawyer?

The attorney was, in fact, a business attorney, but what we later discovered was she had never before worked with a tech startup with high growth ambitions, the need to raise multiple rounds of financing over the next two years, and the goal to exit/sell the company in a five- to seven-year timeframe. We were targeting raising around $3 million ...

Should you become an M&A lawyer for startups?

Choose a lawyer whose focus and experience is working with your business. Meaning, if you are an early-stage technology company looking to ultimately raise outside venture capital, your lawyer should have that same expertise. Ask your lawyer how many startup clients they have. Ask what the lawyer or firm has done for these clients.

Should you hire a startup law firm or go inhouse?

 · Go Small. Lawyers from small law firms, particularly in the 1-5 lawyer range, tend to make the best startup lawyers. In addition to usually being more cost-effective, small firms tend to understand the mind of the entrepreneur since they are not that far removed from being a startup themselves.

Should you move your law firm to a startup?

 · Although most mistakes can be cleaned up later, it can be a huge hassle and a significant expense. Before going any farther down the path, I would highly recommend finding a lawyer who: Has done a ton of startup financing deals. There are nuances and market norms that can make or break financing deals, for example.

What makes a good startup lawyer?

A firm with a strong VC practice has deep relationships with investors that can be helpful to startup founders as they fundraise, and your lawyer should be willing to introduce your company to investors when the time is right. Investors may include individuals (angels), VC firms, and corporate/strategic partners.

How do I choose an attorney to represent me?

There are many ways to find a reliable lawyer. One of the best is a recommendation from a trusted friend, relative, or business associate. Be aware, however, that each legal case is different and that a lawyer who is right for someone else may not suit you or your legal problem.

What is the advantage of hiring a local attorney for a startup?

A business lawyer can help you build and maintain good relationships with your customers, clients, partners, and suppliers by creating the appropriate communications vehicles. If you are asked to sign agreements and contracts with others, a lawyer can review them for you and keep you out of trouble.

How do I know who is a good lawyer?

5 Signs of a Good LawyerCautiously Optimistic. Most cases aren't slam-dunks, and it is important that your lawyer doesn't make promises regarding the outcome of your case and should not be overconfident no matter how seasoned he or she is. ... Great Listener. ... Objective. ... Honest About Fees Upfront. ... Trust Your Gut.

What's the difference between attorney and lawyer?

Instead, 'lawyer' or 'solicitor' is more common. For example in the US, an attorney is a general term for a lawyer that has passed a bar examination and can practice law in a particular jurisdiction. Attorneys act as lawyers but not all lawyers can perform the work of attorneys.

What should I look for when hiring a law firm?

5 Things to Consider When Hiring an AttorneyKnowledge. The first and most important factor to consider is a lawyer's knowledge. ... Character. Hiring a newbie or someone with a record of professional misconduct is going to cause more damage to your case. ... Client Reviews. ... Experience. ... Fees.

Why you need a corporate lawyer?

A corporate lawyer can point out the aspects that influence what type of company fits your unique operation, thus avoiding common pitfalls. In the process, this can assist you to define business goals, competition, and type of employees you may require. Unfortunately, legal troubles can befall any company.

Why you should hire a lawyer for your business?

5 Advantages of Hiring a Business Lawyer When Starting Your CompanyChoosing a Suitable Business Structure. ... Prevent Lawsuits. ... Protect your Intellectual Property. ... Real-Estate Leases and Agreements.

Is it better to hire a local attorney?

Local lawyers can more effectively judge the value of your case or the likelihood of success. A local attorney knows and can fairly judge the temperament in the community and the likelihood of a fair and reasonable verdict being returned in your particular matter.

What should you not say to a lawyer?

9 Taboo Sayings You Should Never Tell Your LawyerI forgot I had an appointment. ... I didn't bring the documents related to my case. ... I have already done some of the work for you. ... My case will be easy money for you. ... I have already spoken with 5 other lawyers. ... Other lawyers don't have my best interests at heart.More items...•

Why do lawyers ignore you?

If your attorney is not experienced or efficient, they may have missed a deadline or made another mistake and aren't willing to confess their error. There could also be some bad news that is entirely outside of the attorney's control.

How often should I hear from my attorney?

There is no set formula for how often you will hear from your attorney. However, the key to a successful attorney client relationship is communication. Whenever there is an important occurrence in your case you will be contacted or notified.

How to pick a good lawyer for a startup?

Selecting the attorney right for you and your startup begins with gaining an understanding of his or her experience and knowledge. Good startup lawyers must master or at least be conversant in a wide range of legal disciplines , such as corporate law, securities law, tax law, real estate, intellectual property law, employment law, litigation, and employee benefits law. Ideally, the lawyer also knows something about the startup’s industry. As one lawyer cannot be an expert in all of these fields, you might want to consider retaining an attorney, who is part of a firm and can tap the expertise of legal colleagues, or a lawyer who otherwise can access to the necessary expertise.

How to choose a lawyer?

In many ways, choosing a lawyer is similar to choosing any professional and requires some investigation. You should be comfortable with him or her and his or her ability to meet your company’s needs and to minimize its exposure.

What happens if a startup company succeeds?

On the other hand, if a startup company succeeds, the startup and its principal want to pay as little as possible in taxes and be paid as much as possible as a result of that success. Again, this is the type of counsel that lawyers regularly provide.

Why do investors use lawyers?

Investors use lawyers to maximize their share of the success and to protect themselves from liability. Startups and their principals should do the same.

What are the two possible outcomes of a startup?

All startups have two possible outcomes – they either fail or they succeed.

Is it important to spend money on a lawyer?

Although there are many other priorities for a startup’s limited time and resources, spending the right amount of money on the right lawyer is essential.

Do startups charge a fixed fee?

Many lawyers serving startups charge a fixed rate for the first or even early stages of financing. The right lawyer for you also ensures you are clear about when you will and won’t be charged for his or her time.

What are some good resources for finding a lawyer?

State bar associations are also good resources for finding lawyers who practice in the field in which you require assistance. Online resources can be another good source, and many such resources have the added benefit of offering consumer reviews, so you can see how other people have rated their interactions with a particular attorney.

Do lawyers work by themselves?

The legal team. Some lawyers work by themselves, while others have paralegals on their team or outsource some of the legal work to other lawyers. You want to make sure you know who will be handling your file, as this can have an impact on both the quality of the service you receive and the cost. Communication.

What do I need to be a startup lawyer?

While there are aspects of the practice that are highly specialized (such as understanding VC deal terms and startup market conventions), being a startup lawyer requires at least some working knowledge across a broad array of legal domains, including tax, employment law, compensation, intellectual property, commercial law, corporate law and securities regulation. As Gandhi puts it, “ In many ways, to succeed as a startup lawyer, you need to be a mile wide and an inch deep — a real generalist. ”

Why do people move to a startup law firm?

One of the main attractions of moving to a startup law practice is the prospect of building the skills and network that can enable transitioning to an in-house role at an up-and-coming startup . Firms in the space recognize this reality, as Gandhi notes: “ Most laterals who come to startup law firms don’t want to be firm lawyers forever. For most, it’s a stepping stone, and we’re conscious of that. ” In addition to equity incentives that could yield dynastic wealth if the company is a runaway success, venture-backed startups can provide an environment where the in-house lawyer isn’t just a risk mitigator or document processor, but a true strategic partner for the executive team and a wearer of many hats.

Do corporate lawyers prefer business?

It is a truth universally acknowledged, that a corporate lawyer secretly—or, in many cases, not so secretly—would prefer a career in business. Any recruiter who speaks regularly with corporate/transactional associates at big law firms invariably hears that their eventual goal is to move over to the business side, or at least to get closer to the business. But what many of these attorneys fail to realize is that there are ways to continue practicing law while still getting to flex those business muscles as a key member of the top-level strategic team at fast-paced, growing companies. Now, does that sound like something you might be interested in?

Is a startup a risky endeavor?

Startups are inherently risky endeavors. As Whistler Managing Director Kathleen Mon sees it: “ Startups are disruptors. If you want that life, you have to be about that life. If you want to work in this space, you can't expect to follow the typical legal career path.

Does A Startup Company Really Need A Lawyer?

What About Using Forms?

So How I Choose The “Right” Lawyer?

• In many ways, choosing a lawyer is similar to choosing any professional and requires some investigation. You should be comfortable with him or her and his or her ability to meet your company’s needs and to minimize its exposure. Selecting the attorney right for you and your startup begins with gaining an understanding of his or her experience and k...

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Paying The “Right” Amount