What Kind of Lawyer Do You Need?
The type of lawyer you need depends on many variables. Let’s assume you’re a high-tech early-stage company looking for capital with realistic prospects of doing say $50 million or more in revenue in five years (i.e., VC material).
First, you’ll need a good securities attorney. These are the folks who make sure that you have the right corporate form (usually a C corporation), get you set up in the right state (often your home state, but possibly a place like Delaware or Nevada), draw up the incorporation documents, review or create nondisclosure agreements, review or create contracts with early partners, create employment agreements for the founders (in a way that doesn’t scare off investors), establish your employee stock option plan, advise you on how to keep appropriate records, help you prepare to raise capital in a way that doesn’t violate state and federal securities laws, and much more. Your securities attorney, in short, helps make sure that you keep a clean house. Well-connected securities attorneys can introduce you to potential investors. Finally, a prestigious securities attorney may make investors more willing to invest – sometimes for no better reason than name recognition. For some investors, “Who is your lawyer?” is one of the first questions.
Second, you’ll probably need a good intellectual property attorney. These are the folks who help you register your trademarks, protect your copyrights, prepare and file patent applications, and develop a sensible intellectual property strategy.
Legal matters are complex, and you’re almost always better off by consulting qualified attorneys. If you are cash-strapped, go ahead and do the groundwork and prepare initial drafts, but make sure that you get a pro to check your work. Cayenne has a database of vetted attorneys for referral.
When selecting attorneys, be sure to check references, interview at least three of them in-depth, and don’t be afraid to ask tough questions. Finally, be sure to choose somebody that you “click” with and really feel that you can trust.