With the economy rebounding and start –ups are getting funded daily it is very important if not as equal partner as filing with the Secretary of State papers the company must have some type of experience approachable attorney in the area to help with legal advice. The first duty for a civil lawyer is to draft up a partnership agreement that can hold up in two ways: disputes no matter how small and of course language such as mediation and arbitration specifics.
For example disputes even though “it will likely never happen-the partners are BFF’S” really isn’t smart business thinking. When receiving start-up seed money , cloud funding , bank loans, SBA loans (even ones under $25,000 ) everyone seems to want to see a partnership agreement that is thorough , well thought out and organized. A typical agreement can simply set out topics such as management responsibilities, meetings of directors, officers responsibilities, certificates of transfer of shares, records and the procedure for inspections by accountants, and internal audits (which should happen quarterly).
Other topics that a civil lawyer can address are amendments to bylaws and construction and drafting each from scratch, indemnification of officers and directors. A civil lawyer can help with many other matters such as funding with entities such as venture capitalists that require lawyers with the meeting so prior to signing every side is on board with terms and conditions of “the deal”. Many times businesses feel that anything can be handled, but the main goal is to run the business, not cracking law books from the “stacks” getting it wrong and then exposing the business at its infancy to litigation. Any sort of litigation drains money off the books and taking precious capitol from R&D, internet advertising, budget for hiring and due upon demand invoicing. The law firm can help get a business on the right path from day one not week one.