Legal Templates

What are the Legal challenges for a starting business?

As a startup founder setting up a new company or trying to raise funds, you will be aware that there are numerous legal documents that must be filled out and signed to formalize and legalize the various processes. As if it wasn’t difficult enough!

Here, we have gathered a collection of the legal templates you will need to streamline these processes, speeding up time for you and your investors, and saving some money in costly legal fees. You will still need to consult a lawyer for solid advice, but these templates should speed things up a bit. As well as this they should provide a beginner entrepreneur with a deeper understanding of the key terms and phrases used in the startup legal world. Learn from those that have gone before and made those all too common mistakes. Forbes have actually listed 10 Big Legal Mistakes made by startups. We’re here to make sure you avoid them:

1. Ambiguity regarding the deals being made between co-founders

• ->To avoid future disputes, all co-founders must be crystal clear on

• -who gets what percentage of the business?

• -% ownership subject to vesting?
• -can a co-founder buy another founder’s shares if one leaves?
• -co-founders time commitments?
• -founders salaries?
• -decision-making?
• -founder contributions?
• -selling the business?
• -if a founder isn’t living up to expectations?
• -overall vision?

2. Not starting the business as an LLC or Corporation

3. Not having a standard form contract that favors your company

4. Forgetting about securities laws when it comes to issuing stocks to family and friends

5. Leaving out employment documentation

6. Not giving enough thought to IP Protection

• -Patents
• -Copyright
• -Trademarks
• -Confidentiality Agreements

7. Forgetting to study carefully important tax issues
8. Picking a name for the company that has issues surrounding trademarks, domains etc
9. Leaving out Privacy Policy and Terms of Use agreement on company’s website
10. Not having solid legal counsel

If you have thought of all of these- great! You’re more clued-in than most. If not, take advantage of Eloquens to read up and grab documents you might need to ensure that your startup will be legally sound.

If you’d like to know more on Business Law, have a look at these links:

• ->Top 7 Legal Documents for Every Startup
• ->The Legal Issues You’ll Need to know if you’re Launching a Startup in 2017
• ->Why Do I Need a Business Lawyer for my Small Business?