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Startup Legal Services: Business Structure, Contracts, IP

This page explains essential startup legal services, when you need them, and how ContractsCounsel connects you with experienced attorneys.

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What are Startup Legal Services?

Startup legal services can be described as assistance during the process of starting your business. It includes a variety of tasks required to set it up, such as drafting agreements or contracts, intellectual property (IP) protection, and compliance tasks. This helps business owners avoid making critical mistakes that can harm their operations or reputation.

Read the rest of this article to learn about what startup legal services usually include, how they can help your business, and when you need to seek legal guidance.

What Legal Services Does a Startup Require?

There are various legal services required by startups, depending on the type of company and its specific requirements. Here are some of the most common ones.

Selecting a Business Structure

Choosing an appropriate business structure will affect many aspects of your business, such as your tax responsibilities and how your business grows. Common types of business structures include:

  • Sole Proprietorship. This business is owned and managed by one person who has full responsibility for it.
  • Partnership. Two or more people will run the business and share losses, profits, and duties.
  • Limited Liability Company (LLC). In this structure, management flexibility is the focus, with taxation benefits for members.
  • Cooperative. The business is run and owned by a group of people or companies to meet all of its requirements.

Registering the Business

A startup has to register their business with the state, which is an essential part of being legally compliant. This process involves filing important paperwork, such as Articles of Organization or partnership contracts. Once you register the business, you’ll have to consider your business tax responsibilities.

Insuring the Business

You will need to get coverage for your business to protect you against any costly financial or legal issues.

Paying Taxes

Paying your business taxes is essential to do correctly, with the help of a tax advisor, so that you meet all regulations and avoid any penalties or legal action.

Contract Drafting

You’ll have to draft important documents, such as employment contracts, to ensure that all parties involved in your business are aligned with your company’s values. They can help you to avoid disputes in the future.

Some of the most common types of documents required by startups include:

  • Shareholders’ or founders’ agreement. This agreement outlines the working relationship between the business and shareholders or founders, featuring key aspects such as their rights and duties.
  • Employment contracts. These documents outline the agreement between an employer and employee. It contains information related to duties, salaries, health insurance, and employment benefits.
  • Intellectual property assignment agreement. This is a transfer of the IP ownership from one person to another, in this case the startup.
  • Code of conduct. This document includes core values, standards, and expectations to encourage a workplace that’s legally compliant and positive.

Identifying Risks

It’s important to consider the risks you might encounter with your business, with which a lawyer can help. They’ll review all documents, contracts, policies, and procedures so that they can evaluate your risks and initiate measures to protect you.

Protecting Intellectual Property

You’ll need to safeguard your intellectual property, which includes trademarks, copyrights, and trade secrets.

Getting all Required Permits

The types of permits you need will vary depending on the type of business you’re starting, but these will ensure you remain compliant with all state and federal laws. Besides permits, you might require licenses so that you can legally operate your business.

The following are common examples of permits and licenses you might require for your startup:

  • Business operation license. This ensures the company can operate, but it will have different fees and requirements depending on where the startup is located. Generally, this license is provided by a state or local government agency.
  • Seller’s permit. This permit is required if you will be selling a product or service in a state that has sales tax requirements.
  • Professional licenses. For professionals working in regulated fields such as legal or health services, they will need a professional license.

Do You Need to Hire a Lawyer for Startup Legal Services?

Although you don’t always require legal guidance for starting a business, it’s advisable. Startups involve many tasks and documents, which could feel overwhelming if you’re new to setting up a business.

Hiring a lawyer who has the experience of dealing with startups and has extensive legal knowledge can be invaluable. Instead of you having to increase your legal knowledge throughout the startup process, a lawyer already has it, which can save you time to work on other aspects of your business.

How Can a Lawyer Help You With Startup Legal Services?

Besides helping you identify risks in your startup, hiring a lawyer can help you with legal services. These include the following:

  • Lawyers will consider your business needs and help you choose the most appropriate business structure.
  • They will help you secure all permits and licenses you need.
  • They will gather all the necessary documents required when registering your business.
  • They will consider the amount and coverage of insurance you need for your business.
  • They will draft your business contracts so that they’re legal, clear, and enforceable, without any misleading or vague terms that can lead to disputes.
  • They will review your business plan so that it’s legally compliant.
  • They will help you protect your IP against infringement.

Where Can You Find a Lawyer for Startup Legal Services?

You might worry that finding a lawyer who’s reliable and professional will be challenging, but it doesn’t have to be. You can find a trustworthy legal advisor on ContractsCounsel, an online legal network that connects clients with lawyers who have been vetted on the platform.

They’re positioned to assist you with all aspects of startup legal services you require, saving you time and money.

To get started, post a project on the ContractsCounsel marketplace. Lawyers on the platform will send you bids and you can review their profiles to choose the best lawyer for all your legal and startup requirements.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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