No matter how small your startup is going to be - you will still need a legal counsel to guide you through the processes. Even if you're on a tight budget, you should squeeze some additional money for a lawyer and here's why.

1. Ambiguous contracts

Contracts are the foundation of the business world - you can't really hold onto somebody's word these days, you need a written guarantee. However, contracts can get tricky and unclear, so it's better to have a lawyer that will set up an unambiguous contract. Otherwise, an ambiguous contract means the court will rule in favor of the other party. You also need to be completely aware of exactly what you're signing. This is another case where your lawyer makes sure you don't fall into a trap and know what your obligations are.

2. Advertising issues

It may come as a shock if you knew just how many ridiculous claims of false advertising got their way. And for one tiny detail - professionals editing the commercial didn't consult a lawyer before they ran the commercial. Some consumers can really go far when it comes to their expectations about your product or service. You need to make sure that your advertisement isn't misinterpreted or is misleading. Otherwise, you only need one angry consumer and you could lose thousands or even millions of dollars.

3. Founders' amount of control

Many times, there isn't just one founder of a company. Either one of the founders has most of the control of the shares or everybody has an equal number of shares, experts like David Kam & Co Solicitors often state that everybody involved needs to be clear about their position. In other words, every founder has to be aware of their capabilities, no matter how small share they have. Furthermore, when having an equal number of shares, many choose to rely on trust. However, if one of the founders starts doing something wrong or stops contributing, a legal counselor will give further guidelines.

4. Potential commercial disputes

Unfortunately, the world of business depends on numerous factors, and each one of them has to function perfectly. If not, many others involved (including you) can be caught in the middle. As there are many issues that can arise, like delivery problems, invoice terms and price, it's better to have a legal backup.

5. Employment and employee rights

You need to treat your employees fairly at all times, starting from the very employment process. There can be no discrimination in any form nor your employees' privacy can be violated. You need to know what your boundaries as an employer are so that you don't inadvertently jeopardize your employees' rights. Things like minimum wage, going too far with personal questions or even implying something that's not true can be a reason for a legal dispute. A skilled lawyer will help you set clear boundaries and protect your company from a lawsuit.

6. Matter of IP protection

This is the era of shameless plagiarism and many other fraudulent actions, so you need to protect your brand from any form of theft. Things like trademark, patent and copyright are there to guarantee you your products or ideas are safe. However, you need a lawyer that will know how to adequately file for them and how to react in case someone tries to "steal" your IP. In order to react timely and effectively, it's necessary to have a lawyer by your side.

Final words

It's important to find a lawyer you can form a strong bond with. You will be confident that your company's safety is in the right hands and you'll be then be able to focus on making profit and evolving.