Hi, I’m a corporate attorney who represents startups, businesses, investors, and entrepreneurs across various sectors and industries. I also have a few startups of my own and work with VC/PE firms and funds.
Often, even during the initial consultation, I spot numerous legal issues that clients aren’t aware of—issues that could potentially be disastrous for their company or themselves as entrepreneurs.
Common problem areas for businesses include (1) legal compliance and regulatory challenges, (2) contract drafting and review (many of the boilerplates used are terrible, and the ones signed when doing business with others are often worse), (3) intellectual property, (4) corporate governance, (5) securities laws, (6) safeguarding intellectual property, (7) litigation and dispute resolution, (8) managing employees and labor, (9) handling the complexities of scaling and expanding operations, (10) structuring and managing different branches of the business as it grows, (11) M&A, (12) tax planning and compliance, and (13) real estate and property matters.
One of the biggest advantages of having a business attorney is their ability to anticipate and prevent legal problems before they occur. With sound legal advice, an attorney can guide your decisions to minimize future liabilities and complications.
Here are some common mistakes I frequently see businesses make:
- Neglecting Proper Documentation:
Failing to maintain thorough and organized records can lead to disputes and legal issues. Whether it’s contracts, employee agreements, or financial documents, proper documentation is essential. A handshake might seem easy, but a solid contract can save you headaches later. - Ignoring Intellectual Property Protections:
Your company’s IP is its identity and competitive edge. Neglecting to trademark your brand, patent your inventions, or copyright your creative works could lead to theft or unauthorized use. Protecting your IP is crucial for safeguarding your business’s assets. - Misclassifying Workers:
The difference between employees and independent contractors is legally significant. Misclassifying workers can result in tax penalties, wage disputes, and legal liabilities. Properly categorizing your workforce is key to avoiding costly repercussions. - Disregarding Employment Laws:
Ignoring labor laws, workplace safety regulations, and antidiscrimination statutes can lead to lawsuits and damage your reputation. Failing to address harassment complaints or provide reasonable accommodations can have serious consequences. - Incomplete or Inadequate Contracts:
Rushing through contracts or using vague language creates ambiguity. Contracts should clearly outline rights, responsibilities, and potential outcomes. Cutting corners here can lead to costly disputes over interpretations and obligations. - Not Seeking Legal Advice Early:
Waiting until a legal issue becomes a crisis is a major mistake. Seeking legal counsel early on can help you identify potential pitfalls and address problems before they escalate. Proactive legal guidance can save time and money. - Ignoring Regulatory Compliance:
Every industry has specific regulations and compliance standards. Ignoring these rules can result in fines, penalties, or even the closure of your business. Staying informed and adapting to changing regulations is essential. - Overlooking Data Privacy:
With the rise of digital operations, protecting customer data is critical. Non-compliance with data privacy laws like GDPR or HIPAA can lead to substantial fines and damage your reputation. Cybersecurity and data protection are no longer optional. - Skipping Due Diligence in Partnerships and M&A:
Entering partnerships or mergers without proper due diligence can be disastrous. Hidden liabilities and undisclosed legal issues can surface after the deal, leading to costly legal battles. - Not Having an Emergency Plan:
Despite precautions, legal challenges can arise unexpectedly. Not having a crisis management or contingency plan leaves you scrambling when faced with lawsuits, PR crises, or sudden regulatory changes.
My practice covers a wide range of business matters, from formation to regulatory compliance, employment issues, corporate governance, multi-state and global operations, equity and debt financing, fundraising, M&A, and more. I’ve seen these legal issues take significant tolls on businesses, sometimes even forcing them to close.
That’s why having an attorney is so important.