Business Lawyers Blog
Texas entrepreneurs often embody a ‘do-it-yourself’ (DIY) ethos. In a typical startup, a compact team of committed individuals assumes various roles across the organization. While this approach can be instrumental in driving a company towards success, however, applying a DIY mindset indiscriminately can be detrimental and lead to significant costs for the business. Entrepreneurs must recognize when professional expertise is needed, particularly in areas with legal implications.
In recent years, we have seen several online services promote DIY legal services as an inexpensive way to help get a business up and running. But when it comes to understanding and complying with the multitude of federal, state, and local regulations that may affect a new business, legal advice is one area where you do not want to cut corners. Instead, you should strongly consider working with an experienced Texas start-up and financing attorney.
Beware of Legal Templates
Many new companies looking to save money use a DIY legal template from a website instead of working with a qualified business attorney. Yet these templates are not as “one size fits all” as you might think. The language in these templates is often broad and not specific to a particular industry, state, or locality. As a result, it may fail to include a key sentence–or even a single word–that can lead to significant legal problems down the line. We have seen startups that start their lifecycles through use of non-customized, generic templates having to spend thousands of dollars in performing retroactive legal clean ups later in their lifecycles.
Consider the typical business contract. Something like a sales contract or an intellectual property licensing agreement can have a significant effect on your company’s bottom line, especially during its startup phase. A template-based contract may leave your agreement filled with potential loopholes that the other party can exploit–especially if they have skilled in-house or outside counsel working for them. The reality is that every business is looking out for its interests, even if that means taking advantage of a customer, vendor, or other partner. By taking on the responsibility for drafting and reviewing your legal contracts without the assistance of a legal professional, you potentially leave your company vulnerable to a bad deal that can sink your startup before it ever has a chance to get going.
The Law Is Complicated–But We Can Help
It is often said that the startup mentality is “move fast and break things.” But that is not how the legal system operates. Running a business means following a lot of rules. Just reading a summary of key laws on a website will not provide the depth of understanding and breadth of experience necessary to meet your company’s compliance requirements. That is why it is worth the upfront expense of seeking out a Texas business attorney who can work with your company as it grows. Contact Structure Law Group today to schedule a consultation