You have an inspiring and innovative idea and you believe that it can change the world. No one can convince you otherwise. So you invest your time and resources in developing your idea and building it up to a startup model. With the right legal guidance, you could be the next big thing after jollof rice. Here are the top tips you should be concerned with as you proceed on your startup journey.
- Never, ever think that getting a lawyer is an unnecessary expenses. A lot more startups has failed than succeeded with this ideology.
- Business Structure- Get the the right business structure. As a startup, you must be thinking long term goal. So whatever business structure you decide on, the long terms effects to your company should be on your mind. You can decide to incorporate a Company, register a business name or an LLP. Whichever business structure you decide on, please note that each has its own legal implication.
- Funding Sources – How do you want to fund start up? From personal savings, from loans or investors? The legal risks associated with funding sources from personal loans and savings are much more lower than that associated with funding from loans and investors.
- Legal Compliance (Licenses, permits and certifications)- Depending on your industry, ensure you are regulatory and statutorily complaint. There are different licenses, permits and certifications you are required to have before you can commence your start up. Please make sure you acquire all the required licenses, permits, certifications and comply with the required regulatory and statutory requirements required within your territory.
- Contracts – This tip cannot be over emphasized. Never conclude you business deals only on the faith of a handshake. Have that contract signed. Be it your shareholders Agreement, Founders Agreement, Non-Disclosure and Confidentiality, Employees Contract, Licensing and Franchise Agreement. There is nothing more confidential that an iron-clad agreement. Never rely on the standard contracts found online. Get a lawyer to draft one for you.
- Intellectual Property – As a fresh startup, you are probably filled with innovative ideas and concepts. These concepts can be copied and replicated by another start up. You need to protect the Intellectual Property in your startup by registering your logos, trademarks, patents, protecting your business models, software programing, development. Where required, make sure your IPRs are protected. In the absence of a proper protection, you are at risk of Intellectual property theft, and you may even assign your IPRs unknowingly.
- Taxes – Know your tax obligations and pay your taxes as and when due.
Finally, get a Lawyer before you commence your startup. Walk hand in hand with your lawyer through every stage of your startup. Your will avoid unnecessary legal deadlocks.
image culled from google
The Social Media lawyer 