Deciding on a startup lawyer is especially important for the business and company you have just started, and it should be considered in the very early stages of the job. Legal institutions operating in the city where you liveLarger, international law firms, and non-affiliated, independent lawyers are the choices you have for leading legal services. To reduce costs, some people try to do the legal work of the company themselves and end up using the available internet services. Taking this approach may be the answer to basic administrative tasks and simpler issues, but as the scope of startup and business activities expands, the need for a startup lawyer and the use of such specialized services become essential. But how do we select the right companies from all the law firms and lawyers active in the field of business and consulting services in the long run? Basically, what are the criteria for choosing a good startup lawyer and identifying such a person? In the continuation of this article, we will look for an answer to this question.
Scope of activities and services of a startup lawyer
Start-ups need to get startup legal advice for a variety of tasks; These include planning and determining stock market strategies, obtaining a license and registering a company, developing a trade secret agreement, developing a company in the international arena, and other legal issues. Hiring an experienced startup lawyer is especially important for those who need the help of private investors in the early stages of their careers. The reputation of the lawyer representing your business will greatly influence the final decision of the investor.
Important steps for choosing a startup lawyer
1. Finding the right lawyer
Hiring a startup lawyer starts with an interview, just like hiring employees and others who are going to work with you in the company.
Note: At the end of the article, you will read the questions that are needed in the meeting Startup Lawyer Interview ask.
As the founder of the company, your most important task is to be one of the institutions active in the field. Business Legal Advice You can choose the option that has enough expertise and experience to meet your needs. Successful work experience with other startups or specialized knowledge in your field are some of the criteria you can consider when choosing the right law firm.
Just keep in mind that there are differences between a corporate lawyer and a startup lawyer. Start-ups have needs early on that are different from the usual needs of commercial companies. Suppose, for example, contracts related to stock value and investor attraction, or initial contracts that are provided to new employees and startups will need the help of a lawyer or expert consultant to develop them. Therefore, the institution you choose should know the difference between these lawyers and be able to benefit from the services of an expert.
Examples of common legal contracts and services for start-ups
- Founders’ contract;
- Share transfer agreement;
- Consulting in order to attract investors;
- Business Confidentiality Agreement (Confidentiality of Information);
- Choosing the right domain name for Internet companies and businesses;
- Preparation of articles of association related to the subject of the company.
2. Make a list of basic legal needs
Some businesses will not have much trouble legally in the early stages of starting a company, and the legislature will not be too strict in dealing with them; But the opposite is also true: some businesses face numerous difficulties and complexities in the early stages.
A good startup lawyer is someone who can help you identify leading legal issues as well as choosing the right solutions to overcome the obstacles and overcome these problems.
A comprehensive and accurate understanding of your needs will have a significant impact on your choice of law firm and the right choice.
3. Location of law firm
You may want to start your own business in Tehran or in the city where you live. A law firm in the same city or province where you want to start a business may not be the best choice. In this case, you may have easier access to the firm’s office, but the most important thing to consider is choosing the firm that can provide you with the best consulting services possible and benefit from the experience of an expert startup lawyer; That is, the distance of the place should not be the main priority; In addition, it is possible to communicate online and online.
When looking for the right startup lawyer, as mentioned earlier, his knowledge and expertise in your field should be one of the top priorities for the final choice; But there are other factors that you should not ignore: assuming that in the future your company’s main markets will be in Tehran or other cities, or whether you intend to expand your business and set up branches in other countries.
Of course, finding a law firm in the same city where you set up your company and business can also have benefits; For example, in such a situation, your startup lawyer and other consultants will find it easier to introduce your company to other investors and sponsors.
4. Justifying a startup lawyer about the company’s long-term goals
If your need for a startup lawyer is limited to just drafting contracts and basic legal and administrative work, it doesn’t matter how many relationships you have with him. But on the other hand, if you are planning to have a long-term relationship and you want to benefit from his legal advice and services in the future, then it is especially important to justify him about your long-term goals and how you relate to him.
In fact, in the very early stages, you should consider that your lawyer can have a good and complete understanding of the future needs of your company and business. He should be a good representative for you and your company and he should be able to do it well. Investors who are attracted to your work will give you suggestions and advice on choosing a lawyer; But surely their proposed lawyers are first and foremost trying to protect the interests of the investors. By having a long-term relationship with a lawyer who has a good understanding of your short-term and long-term goals, you can also take steps to protect the benefits of your business.
5. The role of a good startup lawyer in bringing valuable relationships to the business
Other characteristics of a good startup lawyer are strong communication skills and knowing different people in your field of work. The relationships that such a person can bring to you will play an important role in meeting the future needs of your business. Therefore, it is good to consider this feature when considering different choices from lawyers and law firms.
Investors, founders of other companies, acquaintances in your field, legal authorities and even those who can be used for legal support, are among those who may be in the circle of your startup lawyer. Such a person can, in addition to the legal work he or she does for you in the early stages, offer new opportunities for you and your business that will be of great value.
6. Choose from the methods of paying for the services of a lawyer or law firm
Among law firms and lawyers are those who have lower rates of wages or who, by concluding contracts, reduce the burden of costs on the start-up business, hoping that their business will expand and earn more money in the future than their current wages. . With this in mind, you have a variety of solutions and options for paying a startup lawyer’s salary. We will introduce these solutions below.
Fixed and pre-determined wages
This type of payment is for when you want a lawyer or law firm to review certain documents and contracts for you, or to do just the basics.
Hourly wage payment
This is another common way to pay a startup lawyer or a law firm. The procedure is that you first pay them a certain amount and then they receive a fee for each hour they work for you.
This method is usually not recommended for startups, unless you have a big goal in mind and, for example, you want to completely change the taxi system of the country. In this case, hiring a startup lawyer or even a team of lawyers on a regular basis will be a worthwhile investment. In addition to a certain salary, such people will also have a share in the company’s stock or income.
If none of these payment methods are compatible with your capital and planning, you can use the services of some websites, which will be largely free; Some of them, by default, provide you with default templates to use for submitting documents and paperwork to legal authorities (and other services like this).
Top 10 Questions to Ask a Startup Lawyer When Interviewing
We said at the beginning that hiring a startup lawyer, like the hiring process, requires an interview. Here are some questions to consider when conducting this interview.
- Have you worked in your field of work? Familiar with the specific language of the field? And that he has an understanding of your business model (or business model)?
- How much time can you spend on your work?
- If he was not available for any reason, who would he recommend to replace him temporarily?
- Do you have a history of working with companies whose business has reached the stage of monetization?
- Is it able to design a capitalization table and provide advice on it?
- Has experience in determining compensation for key corporate employees (including selections of company shares for all employees)?
- Do you have experience with corporate ownership and patents?
- Has he worked with companies active in the international arena?
- Has a track record of mergers and acquisitions (for example, how does it prepare the company to end operations)?
- Would you like to talk about some of the startups they have worked with and share their experiences?
Using the services of a startup lawyer is important and decisive, both when starting a business and when expanding it. Being smart, being available, being interested in your business, being talkative, and. Are all defining characteristics of a good lawyer and consultant. Choose someone you can count on and be completely honest with. Do not forget that your lawyer will be by your side both in pleasant and exciting moments of work and in difficult situations that sometimes cannot be avoided; So before making a final decision, weigh all aspects of the matter well.