Birmingham Startup Attorneys & Lawyers

Why Hire a Startup Lawyer?

When you start a new business in Birmingham, Alabama, you face a number of different legal requirements on state, local, and federal levels. You will also have to make decisions about whether you want to raise money from investors, incorporate your business, and protect yourself and any other partners in the startup.

For many startup companies, cash flow is limited, which may restrict you from hiring a startup lawyer. But some attorneys in the Birmingham area offer flat-rate or discounted pricing to startups, helping them get started with the necessary legal steps to register as a business in the state of Alabama, file for an employer identification number (EIN) with the IRS before hiring employees, and work out contract agreements with potential investors.

Hiring a startup lawyer can help you avoid legal issues that could end up costing a lot more than the initial fees charged by the attorney. One of the most common problems faced by new business owners is understanding compliance laws. Even one violation can lead to serious penalties and fines, which could bankrupt a new business in a short time.

When you have other members or partners within the startup, it's crucial to have a well-drafted agreement to protect all owners. Although you might get along with one another as you get started in running the business, you may have disagreements or not see eye-to-eye about operations in the future. With a clear understanding of the options and hierarchy of the startup, you can avoid nasty legal disputes while protecting the interests of the business.

Your startup might also need assistance from an experienced lawyer to hire new employees, obtain trademarks or patents on your intellectual property, negotiate contracts with customers and sellers, raise capital from investors, and decide how to incorporate to benefit the business. It's helpful to have an attorney available to make sure your company is in compliance with tax laws since these tend to get complicated when accepting investments.

How to Find the Best Startup Lawyer

There are many top lawyers throughout Birmingham, but not every lawyer specializes in business law. Even those who do understand employment and business laws might not be as helpful for a new startup company since many lawyers work with businesses that are further along in the process.

When you look for the best lawyer for your startup, ask questions that will help you get a feel for the attorney's style of practicing law, such as whether he or she takes a more laid-back approach or is reactive to situations, as well as preferred communication methods and how quickly you can expect to hear back. One of the complaints that startup owners have is feeling like it's difficult to get a response back from the attorney they've hired. Even the first contact to a lawyer can help you get an idea of how quickly he or she will respond since most law firms will follow up the same day or within 24 business hours to schedule an appointment.

As you search for the best lawyer for your company, it's important to feel comfortable with his or her personality. You will work closely with the lawyer on a variety of issues and tasks, and some will relate to selling equity and investing in your company. You want to make sure that you can fully trust your attorney to have the best interests of the company and its partners at stake when helping you make decisions.

To find a startup lawyer, start by performing some research online. You can read reviews from past and current clients, along with practice specialty information so you don't waste time calling lawyers who don't focus on business law. If you know of any other startup company owners in the area, ask for recommendations for legal support. You can also view the Alabama State Bar Association website to make sure that all of the lawyers you are looking into are still in good standing.

Questions for a Startup Lawyer

• What area of law do you focus your practice on?
• Can you describe your past experience in working with startups?
• Do you have enough time to take on a new startup client?
• How long have you been practicing law in Alabama?
• Will you handle the legal needs of our company, or will we work with someone else in your firm?
• Have you worked with other companies in my industry?
• How do you communicate with clients — email, phone, etc.?
• How quickly can I expect to hear back from you?
• How do you bill startup companies — hourly or flat-rate pricing?
• Can you provide any discounted services for my startup?
• Have you ever helped a client secure funding from investors?

With the right startup attorney, you can focus on growing your Birmingham-based business while your lawyer takes on the legal issues and concerns.