Top Five Legal Issues Entrepreneurs Must Know About

Here is an interesting article that identifies five major categories of laws that entrepreneurs starting a business should think about early on. These include equity; IP; tax; labor; and insurance. I found this to be a good read toward the end of our course, because it can act as a summary of the broader themes of the class. We must learn how to integrate our legal advice with the problems facing the entrepreneurs at that time in their business’s lifecycle. Articles like this, geared toward entrepreneurs, can give us valuable insight into what those problems may be.

3 thoughts on “Top Five Legal Issues Entrepreneurs Must Know About

  1. Great article. Equity ownership is an important issue startups should address, especially when they are strapped for cash. My supervisor last summer had one advice from his own experience that the article does not address since startups are the target audience. He told me that he was approached by various friends asking for legal help with their startups but had no cash on hand to pay him. Instead, they offered him an equity stake in the business and he really believed that the companies he was giving legal advice would succeed. But like with most ventures, they failed and he was never compensated for his work. So his advice for me was to be careful of providing legal assistance for an equity interest, and whenever possible, ask for upfront payment.

  2. “We must learn how to integrate our legal advice with the problems facing the entrepreneurs at that time in their business’s lifecycle.”

    I think this point is important. How startups choose to create a path/plan moving forward needs to focus on the legal issues more and getting to market less. Some brands would be more successful if they worked hard to realize what the legal obstacles they face before they go to market and have to spend funds on protecting against suits. I firmly believe that a lawyer’s involvement will sincerely help promote the growth of a company, diminishing the likelihood of failure.

  3. Interesting Perspective. I thought the point was well made this this serves as a sort of summary for things to think about as we wrap up the course. The Snapchat example was something I hadn’t considered and highlights the point that legal planning on the front end can save significant costs on the back end.

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