Startups Cannot Avoid Paperwork
Starting a business is a noble cause and something to really get excited about. However there is one big threat to your business that goes beyond the market and the competition.
Allow me to explain: It seems like you hear in the media about people starting businesses everyday. There is a continuous flow of glib reports of startups that have great hopes of disrupting markets and industries. Coming up with a business idea is simple enough, it is much more difficult to find one that will stick.
Threats And Frets
There are many threats to a delicate young startup such as competition, product substitution and that there is an actual demand for your product or service that you can sell successfully.
These are real and pressing issues but they are not the sorts of thing that really stands in the way of a new business. The ultimate issue is the red tape and paperwork of creating so that a new business entity can enter the market.
Building The Business Paper Trail
You have many practical decisions to make when you start a business and when those decisions involve relationships with other people you must have some formal structure and documentation that define the boundaries of your business.
You are going to need the services of an attorney to handle most of these. In fact having an attorney is as important as the documents themselves. There are some dangerous traps in statutes and case law for your state, which your lawyer will guide you past so that you get a fair deal from your partners and suppliers.
Some Of The Most Important Documents For Your Business
What do you need In the way of legal services if you are starting a business? That’s a good question and here is a short list of just a few of the most important things that you need to consider calling on the services of an attorney to prepare:
Creating Contracts – The law surrounding the creation and enforcement of business contracts goes back to the roots of the legal system of the Western World, some five hundred years ago and more. There are many ways that you could be compromised if you do not have the support of a qualified expert in the contract laws of your state.
Non-Disclosure Agreements – The use of NDAs is very helpful in startups because they enable you to discuss the sensitive details of your business without the fear of alerting competitors and new entrants to your market. Have a business attorney create the right NDA to bring experts into your business securely and discreetly.
Entity Formation – So, to get the best out of your market place, what kind of organization do you need? You may wish to proceed as a sole proprietor or form a partnership or a corporation. Get the right advice to get the one that is right for your business.
Setting Up Terms of Service – If you provide a service there must be a clear statement of where the boundaries are, and what you can be expected to deliver, i.e. your Terms of Service. A little effort now will provide clarity that prevents the need for a lot of effort later, to defend your business.
Legal Advice Is Always Welcome
Later, if your business is successful, you will be bringing in investors and issuing shares. You will again need a business attorney to complete all of these tasks and also anything that comes up unexpectedly. That is why it is advisable to start a relationship with an attorney early and to build it as the business grows.