Should founders retain a personal legal counsel when starting up?

This is a common question asked by those considering creating their own business and the best and most simple answer is: if it is economically viable for you, than it is always the best way to go.

Depending on your needs, however, this can be costly and intimidating if you don’t understand the very basics of starting a company. Before retaining counsel, you should (if not already) become very familiar with very basic terms and principles of owning and founding a startup corporation. Consider obtaining a fundamental understanding of the following:

  • What State to Incorporate in and why;
  • Company structure- Shareholders, Officers and Directors, know what they do;
  • Company formation, Articles of Incorporation, By-laws, Director and Shareholder Consents, and Shareholder Agreements;
  • Understanding Capital – Investors, debt and equity funding; and
  • Taxes (generally).

A sound prior understanding of these of these basic topics will go a long way in reducing legal and accounting costs. Lastly, do not be intimidated by legal counsel. Luckily, the legal experience is currently changing. Gone are the days of hourly billing and inefficient communication. Here at LawTrades, we offer transparent, affordable flat-fee pricing, as well as 24/7 customer support. We also offer a satisfaction guarantee so you know you’ll end up getting exactly what you wanted. Visit us for a free initial consult w/ a top startup lawyer!