Pros and Cons of Having a Dedicated Startup Attorney
May 24, 2021at11:00 PM
Each stage of growth that your business reaches exposes it to new legal complexities. And you might also realize that the farther along you plan, the more apparent it becomes that your long-term strategies need a strong legal component.
As Savvy Esquires PLLC counts corporate and startups among our practice areas, it’s common to receive questions about how a startup attorney truly helps. And we’re also often asked about the drawbacks of having one.
Here, we provide a look at the pros and cons of having a dedicated attorney for your startup.
Pros of having a dedicated startup attorney
Startups that work with a startup attorney benefit from effective legal counsel at several stages of their growth. Notable advantages include:
1. Advice with company formation and structure
Forming a company doesn’t ordinarily require expertise. But the situation is more complicated when there are multiple founders and investors and equity rights to establish.
In addition to creating a company structure, you would need to prepare for eventualities such as what happens when a founder leaves. For your business and industry, you may wish to consider non-competition agreements.
A startup attorney’s assistance greatly simplifies these processes.
2. Protect your intellectual property
Depending on the nature of your business and industry, your IP might be at the center of your viability as an organization. That’s why one of the most urgent priorities for ensuring a strong long-term competitive position is establishing ownership of your IP.
With a startup attorney, you can register your business’ IP through patents, copyright, or trademarks. Your lawyer also initiates legal proceedings against parties that infringe on your IP rights, actively securing your market position.
3. Receive legal counsel on business-to-business contracts
Your business’ growth means you’ll be entering into more contracts with suppliers, partners, distributors, professional services, and other agreements with various businesses.
Having a dedicated startup lawyer can be a significant advantage here, too. Their legal advice on contracts can potentially help your business avoid falling into a disadvantaged position.
And your lawyer’s advice on the contracts you draft ensures that they’re legally enforceable and capable of defending your company’s interests.
4. Protecting your personal assets
For some of the clients we advise and represent at Savvy Esquires PLLC, creatives who are establishing businesses, separating personal assets from business liability can be a challenge of its own.
Cons of having a dedicated startup lawyer
Some businesses cite certain disadvantages of having a startup attorney as major barriers to working with one, despite their benefits:
Especially after launching, startups are typically not in a financial position to hire legal professionals, who often charge highly within this practice area.
Our approach makes it easier for startups to get affordable legal services. We don’t offer hour-long consultations that end with confirmation that the lawyer is indeed prohibitively expensive.
Instead, we invite prospective clients to shop our services and check our transparent pricing.
2. Greater scrutiny with decisions
Having a dedicated attorney for your startup means each decision is subject to an additional stage of approval. While some founders may not like the somewhat slower pace this causes for decision-making, others appreciate that it fosters a greater depth of strategy.
Although this is a common problem, our streamlined approach enables us to overcome it.
Empower your business for growth with a startup attorney
Savvy Esquires PLLC works with entrepreneurs and creatives to support their businesses with a framework of strong legal strategies and sound counsel. We’ve been practicing collectively for over five years, providing legal services to founders across various industries.
Let us help you grow your startup with enterprise-level legal services. Fill out our contact form for a member of our team to reach out, or give us a call at (646) 256-2484.