“It depends” definitely fits here. Typically startups lack legal documents, which is much more of a risk than having too many. There are a few instances where legal documents can cause ill effects though:
-Asking investors to sign a non-disclosure agreement (NDA) before meeting with them. Investors are usually turned off by this, which is not a good first impression.
-Applying for a costly non-provisional patent rather than taking advantage of legal documents which protect IP, such as confidentiality agreements, IP assignment agreements, or provisional patent. Unless your startup is in the software or product world, applying for a patent is probably not necessary in the very beginning.
I’m sure there are other times that legal documents are unnecessary, but I’m unsure if they’re ever “bad.” Feel free to stop byto speak with a startup attorney about your legal documents. We offer flat-fee pricing and end-to-end management so that your legal work gets done as planned from the beginning.