CONTACT US
CONTACT US

When Should A Startup Talk To A Lawyer?


We at Allied Legal have assisted countless startups at various stages in their journey. That’s why we understand that, for many startups, resources are tight from day one, and decisions have to be made about how to expend what limited finances are available. Still, every startup will reach a point where it needs legal expertise to proceed properly. This begs the question – when have you reached that point?

Immediately?

As a general rule, it’s never too early to consult with a startup lawyer. We deal with different startups on a daily basis which gives us a unique insight into the difficulties and requirements they face. A good startup lawyer will be able to provide advice and insights that will be helpful from the beginning (including how to best structure your business and protect your IP). 

That being said, it’s probably not necessary to start racking up legal fees when you’re still in the idea phase. If you’re still brainstorming or validating your offering, your resources might be better spent on this task. We recommend spending your time and money on solidifying and finalising your idea in the early stages. 

Research and development?

If you’re in the research and development stage of your startup, there’s a good chance you should talk to a lawyer. This, of course, depends on what is involved in your research and development. As a key point, if you’re hiring third party contractors to write software or develop your product, there are a number of legalities to consider:

  1. Ensuring all relevant intellectual property vests in your business? 
  2. Are you liable to pay the contractor if they don’t deliver? 
  3. The contractor’s exposure if a sub-par result is delivered.
  4. What level of warranty protection is being offered by the contractor.
  5. What level of after sales support will the contactor provide.  

The above issues should be addressed in a written agreement by which you are retaining the contractor. Although it may seem expensive going to a lawyer to hash these matters out, it’s very possible that this could save you money in the long run. 

What else can we help with?

A specialist startup lawyer should be able to assist you with the following:

  1. How should you structure your business? 
  2. Protecting your intellectual property.  
  3. Do you require a shareholders agreement? If so, what should it include?
  4. What are the privacy, tax, and other legal obligations of your startup?  This includes advice on approvals and authorisations specific to your startup.
  5. Terms and conditions required to take your product or service to market.  
  6. Employee engagement and incentive plans.
  7. Fundraising issues.
  8. Key commercial arrangements. 

Too often we see startups come to us after the fact, when the ball has already been dropped on one or more of these issues. We know from their stories that its much cheaper to prevent these problems than it is to fix them. 

Give us a call

Here at Allied Legal, we know how to protect a startup from the outset. It is, in fact, our area of expertise. If you think your startup needs some legal assistance, give us a call on 03 8691 3111, or send us an email at hello@alliedlegal.com.au.  

Related Articles

VIEW ALL VIEW ALL

Legal Considerations for Co-Founders: Equity Splits, Roles, and Responsibilities

Navigating the complexities of co-founder relationships is crucial for startup success. This article delves into key legal considerations, including equity splits, roles, and responsibilities. Explore various equity distribution methods, such as equal splits, performance-based splits, and negotiated splits. Understand the importance of clearly defined roles, from CEO to COO, to ensure smooth operations.


The Risks of Clients Using ChatGPT to Review Legal Documents

Discover the potential dangers of using ChatGPT for legal document review in our latest article. With generative AI's rise, many clients turn to ChatGPT for instant feedback, unaware of the risks involved. We delve into concerns like information accuracy, confidentiality breaches, privacy issues, and copyright violations. Learn practical strategies for mitigating these risks, including independent verification, data protection, and compliance with legal standards.


The Importance of Non-Disclosure Agreements (NDAs) for Startups

Discover the crucial role of Non-Disclosure Agreements (NDAs) for startups at Allied Legal. Learn how NDAs safeguard intellectual property, foster trust, and enhance negotiation power, essential for maintaining a competitive edge in the startup landscape

Subscribe

Subscribe to our newsletter to receive exclusive offers and the latest news on our products and services.

First Name
Last Name
Email Address

Need some help?

If you need assistance, why not book a call with us today? Or fill out the form below to book in for a free confidential consultation.