When entrepreneurs, technology startups and other new ventures begin formal operations, they are immediately faced with a variety of startup legal issues that can make or break their company.
These legal issues can range in disciplines and subject matter from intellectual property protection, to contract law, to corporation formalities and governance, and securities law, among others.
Startup Legal Issues for Technology Companies
For example, a company planning to launch a new mobile application in the field of social networking may need to form a corporation or a limited liability company, it may want to sign documents between cofounders, engage a web development or mobile app development firm to begin building their software, and naturally, they will be interested in protecting company secretes and intellectual property along the way.
Financial Startup Legal Issues
Other startup legal issues stem from company operations. A company raising a round of financing, for example, may have questions about stock shareholder agreements, private placement memorandums (PPMs), crowdfunding options, and using debt or equity to finance startup expenses.
For a company that is funded and ready to execute on its plan and budget, legal considerations such as contract negotiation and deal structuring with strategic partners, collaborators, marketing firms, spokespersons and consultants, and technology experts may be required.
Then, there is the regulatory side startup legal issues, which are driven by the nature of the company business and products and services. A startups in the mhealth or other healthcare vertical may have to comply with a variety of regulatory requirements that a SAAS startup may not. And if the company is charting users a fee on the platform, additional financial regulations may apply.
Startup Lawyers in Los Angeles
Overall, there is no such thing as startup law, or a startup legal field of practice, but an experienced startup lawyer will be familiar with the variety of startup legal issues that entrepreneurs sand technology startups may face, as well as an understanding of the market realties of launching a technology startup.