Entrepreneurs don't have the luxury of hiring a team of powerful attorneys. I doubt you'll be able to afford anyone if you're working on a shoestring budget, but you'll need to get money from somewhere to avoid major trouble.
Sometimes hiring a good lawyer is essential, or your business will be destroyed. We'll look at a few examples to ensure you don't try to do everything on your own. It will work out in your favor in the long run.
1. Taking Illegal Substances
It feels like every startup founder is consuming illegal substances these days. Entrepreneurs brag about popping Adderall pills like gummies, or microdose with psilocybin mushrooms even though it's illegal almost everywhere.
Some entrepreneurs use cannabis to unwind after a long day, even if they live in states where it's a controlled substance. You might need a law firm like Mass Tsang to help you beat drug charges if you're breaking the law.
2. Accused Of Committing Fraud
Dangling prizes in front of social media followers is a great way to become successful. If you run lotteries and sweepstakes, you'll be skating on thin ice. It's worth speaking to a lawyer to see what's allowed.
If you don't seek legal advice before doing something, you could be accused of fraud. Maybe you will commit fraud accidentally if you're not careful. A fraud lawyer is expensive if you go through a long investigation.
3. Starting To Pitch Investors
If you want the business to grow above a certain level, you'll probably need to pitch investors. All your competitors will be burning through money. If you don't follow suit, you won't be able to keep up with them.
Lawyers will make sure everything is done right. You must use your own lawyers because you can't trust anyone who works for someone else. If everyone starts suing each other at some point, it's unlikely your company will survive.
4. Avoiding Personal Liability
You will need to set up the structure of your business correctly, which will depend on several factors. Your lawyer will usually recommend a structure that doesn't leave you personally liable when things go wrong.
If the business loses lots of money, nobody will be able to sue you for the clothes off your back. You won't be personally responsible if someone gets hurt using your product. It will also protect your family from getting hurt.
5. Hiring And Firing Employees
You'll have lots of employees coming through the door when starting out. People like to move after working for a few years at startups. If you hire and fire employees regularly, you must make sure you're following the law.
Sometimes people who don't get the job will sue you, but most of your problems will come when letting staff go. If you follow the advice of your lawyer, you can rest easy knowing you won't get stung with lawsuits.
Lawyers Will Become Invaluable
I know it doesn't seem like you'll need lawyers non-stop while running a startup, but you'll find out it's true, especially as you grow even bigger. Make sure you have a few great ones on call at all times.