Reasons Why Start-up Needs a Lawyer

Starting a business requires a lot of organization and planning—asides from sourcing funds from private federal or state authorities. While you might need to get employees that will help run your business. It is equally important that you hire a lawyer to guide you through the legal intricacies of running a start-up.

They usually advise on the necessary documentation that the company must file with the government before the business is duly registered. In instances where a company or a start-up is not required to be registered, the lawyer will oversee the process of acquiring the requisite perm and licenses from the government and other regulatory bodies.

A business or a start-up can take different forms under law. The business form adopted by the founder will determine whether the company will assume the legal personality and whether the founder's liability will be limited or unlimited. The lawyer then advises the founder on the most appropriate business form. The business could be registered as a limited liability company (LLC), a corporation, a sole proprietorship, and a partnership.

A lawyer understands that a corporation is a legal person and is distinct from the founder. This means the corporation has the power to go about its activities separate from the founder's identity. Similarly, an LLC is a corporation with limited liability. This means that the founder will not be held responsible or liable for the company's activities.

As a registered company, your start-up has a corporate personality. This means that it can enter into contracts, sue, and get sued. So it is essential to have lawyers who review contracts and agreements to ensure that they are not contrary to the law.

Because the United States is a federation and different states have different laws regulating startup-ups and small businesses, it is essential that you ensure their no loopholes in your legal compliance. Lawyers go to the core of a start-up because they are key in the formation process. They play an essential role in registering the business with the appropriate government agencies and regulatory bodies.

Seeing that tax evasion is illegal, individuals and businesses must pay tax either to federal, state, or local authorities. When a business fails to file tax returns as they ought or in instances where they fail to pay a specific amount, they might enter into legal disputes with the Internal Revenue Service (IRS).

Therefore, it is important that you employ a start-up lawyer to acquaint you with the various tax obligations and responsibilities that you might have under the law. This is important because it helps you save valuable time and costs that might come from litigation and penalties from the IRS.

Further, a lawyer can play a very important role in helping a start-up organize its insurance liabilities. This is important because start-ups are prone to many insurance liabilities. For instance, if the start-up is into logistics, they might need to insure their automobiles and understand the rights and liabilities from such insurance.

Similarly, lawyers ensure that a start-up's products are adequately protected from competitors. For example, lawyers ensure that the company's intellectual property is adequately protected. When companies do not enforce mechanisms that protect their copies, trademarks, and inventions, they will be exploited by competitors.

BETA and Tech.mn's TCSW

By utilizing her expertise as an attorney, Jamie Hurewitz serves as Mattermost’s head of legal. Even in her spare time, Jamie Hurewitz helps small businesses in her community grow by public outreach and speaking engagements via events like the Twin Cities Startup Week (TCSW).

Held by local businesses BETA and Tech.mn, the TCSW provides St. Paul and Minneapolis entrepreneurs opportunities than just venues like meeting investors and free access to mentorship. The event celebrates aspiring and successful small business owners and their importance to the local economy. Via information sessions focused around topics chosen by the attendees and residents, BETA and Tech.mn invest heavily in creating a successful event. TCSW is one of the largest events of its kind. It hosted over 19,000 total attendees and staff in 2019.

TCSW occurs during September of the given event year. Asides from the free events, like the information sessions and art and culture exhibitions, dedicated supporters can purchase the BETA Pass to gain entry to BETA’s Slack channel, more intimate events, and networking opportunities. Out-of-state entrepreneurs could apply for the Fly-In program, which not only included a BETA pass but a curated event list.

Techstars’ 2021 UnitedHealthcare

As Mattermost’s head of legal, Jamie Hurewitz helps small businesses create scalable work-from-home models and assists companies transition from in-person to remote work more broadly. One program that Jamie Hurewitz mentors is the UnitedHealthcare Accelerator (UHC), created by Techstars.

One of Techstars’ many accelerators catered toward startups, the UHC Accelerator teaches applicants the skills needed to hone their idea, obtain funding, and operate the business efficiently. Applications opened on February 12, 2021, and ran for about 10 weeks. Within eight weeks of the closing date, Techstars contacted the final applicant pool. Like their prior two UHC Accelerators, in 2019 and 2020, Techstars placed increased emphasis on choosing entrepreneurs from underrepresented backgrounds, like women or members of racial or ethnic minorities.

The 2021 UHC Accelerator began on September 7, 2021, ran for 12 weeks, and contained 10 companies from a candidate pool representing 36 countries. The organization admitted candidates representing technology-oriented solutions to healthcare issues at all process steps. Examples included Confidant, at-home mental health services, Medzoomers’ home prescription delivery service, and Ruth Health, which assists pregnant women with at-home resources.

Regulatory Compliance in Business

Longtime Minnetonka, Minnesota resident Jamie Hurewitz serves as head of legal at Mattermost, where she is responsible for developing the legal and compliance framework for the early stage startup. Jamie Hurewitz's expertise includes employment and intellectual property law, as well as business regulatory compliance.

Compliance is the act of a business obeying rules and regulations pertinent to safe, legal operations in a region, state, or country. Examples of such rules are health standards and data security.

By being compliant, a business acts to maintain its reputation and prevent legal disputes. If a business contravenes any of the rules, it may be subjected to fines or even face charges for non-compliance, becoming vulnerable to financial losses in legal processes. Also, customers naturally tend to distrust entities with a history of noncompliance.

Regulations are not unnecessary obligations, and the majority of these rules contribute to helping businesses achieve better working environments. The purpose of these rules is to protect customers, businesses, and employees, among others. Some of these rules bring about more than one benefit. For instance, safety and security rules help protect workers from harm by reducing accidents and injuries in the workplace that would also directly or indirectly result in financial loss.