The First Art Newspaper on the Net    Established in 1996 Monday, December 6, 2021


Legal Services Your Startup Might Need



The global startup ecosystem has never been more robust. Because of the success stories of billionaire visionaries like Steve Jobs, Sergey Brin, Larry Page, and Mark Zuckerberg — it is not surprising that those who feel that they have an idea that could positively impact the world can be turned into a company. From providing cloud computing infrastructure for e-commerce companies to offering intelligence supply chain integrations using artificial intelligence, it seems like there is a new startup popping up every minute just roaring to become the next big thing.

The thing about startups, however, is that they are not just ideas that are turned into companies — they are real legal entities that require a lot of due diligence on the part of their founders. You would want to form a type of company that allows you to seek funding from outside investors, for example. Then, if you know what type of company you should have the next thing to consider is where to incorporate that company because not all states have the same regulations and tax rules.

Finding the right startup legal service for your startup needs can be a daunting task so here is a short breakdown on the services that you would most likely want to consider.

1. Setting Up a Cap Table
If you are a startup you will have to hire a lot of employees to help you build and market your product — you obviously need funding. One of the documents that potential investors often require is a cap table, a document to demonstrate how much capital your startup has received and from whom.

Having this document prepared by professionals will not only ensure that the valuations and calculations are done correctly, it is also important to make sure you do not commit misrepresentation and run into legal troubles along the line.

2. Choosing Where to Incorporate
So your company is ready and raring to start operations in your base office in San Francisco. The next step of course is to file for incorporation with the state — of Delaware? That's right, one of the most important legal services that your startup can seek is incorporation.

Not only will professionals know what type of company you should have (an agency will be better off as an LLC and a product based company that wishes to seek investors should be a C-corp) but they will also know which state to incorporate in for regulatory and tax reasons. One of the most popular professional incorporation services out there is Incfile. And if you want to know more about it -- don't hesitate to read a review of Incfile here.

3. Making Sure Intellectual Property is Accounted For
Of course one of the most important things that a company can have to ensure durable competitive advantage is a product that nobody else has — your intellectual property will give you the edge. You want to seek out legal services that make sure that the intellectual property of the founders or the employees are protected.

4. State-Compliant Staffing
Lastly, there are various staffing laws that a company has to take into account also. Hiring professionals will help a shrewd founder make sure that every single employment contract that a company has is enforceable and legal in the eyes of the state. These are very tricky waters to navigate, so you will want the most professional help that you can find.

Making sure your startup gets the right legal services in order for it to scale safely and without any red tape encumbering it can be tricky, but with a little research and the right partners, your startup will undoubtedly be in the right hands and your vision is not far from becoming a reality — the future is looking bright!










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