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Why Should a Startup Hire a Lawyer?

Starting a new company is a huge challenge. Silicon Valley executives describe a startup as a lifestyle. They know that an owner will spend most waking hours working on the startup. A person in this position doesn't have time to waste on legal issues. Every form they fill out or legal problem they face is time better spent elsewhere.

Hiring one of the best attorneys in Cleveland, Ohio, saves a startup owner that headache. The lawyer will handle all the legal issues in a timely fashion, giving the new business a better chance at success.

When Does a Startup Need a Lawyer?

A new company legitimately needs legal advice from the moment it begins. A top attorney can teach a startup how to set up its business the right way. The lawyer will decide between these types of businesses:

Sole Proprietorship
Partnership
Limited Liability Corporation
C Corporation
S Corporation

Anyone who doesn't understand the differences in these types of companies must hire a lawyer. Otherwise, they run the risk of setting up the business the wrong way. The legal ramifications of making that mistake could haunt the business for many years afterward. Before signing the paperwork for a business, make sure to ask a lawyer the best way to file your startup.

Why Does a Startup Need a Lawyer?

You want to make sure you're not breaking any laws, as it is sometimes tricky to understand all the rules and regulations about starting a new business. When you're getting your business off the ground, you also want to make sure you're paying the proper amount of taxes. An attorney can help you sort through these questions.

Additionally, you set the right standards in your beginning work with customers, employees, and suppliers. If you are working with several people to start a business together, you also need an attorney to help you decide the rights of the founders. If you take this step at the start of your business development, you'll avoid disagreements in the future.

Startups should consider getting a lawyer involved in:

Setting up Business Structure: There are several different options for incorporation, or you might consider a sole proprietorship. An attorney can help you choose the right structure for your new company.
Hiring New People: Employment law can be difficult, and you want to be sure that you are not accidentally breaking laws during the application and interview process. An attorney should review contracts for employment. You'll also need an employee handbook. Without one, workers can plead ignorance when they violate company rules.
Raising Capital: A top startup lawyer can help you work through this process, making sure that your process to fund your company is in line with legal requirements and regulations. Lawyers with a lot of experience in fundraising also have a network of contacts you can mine. Hiring an attorney could lead directly to an investor funding your projects.
Intellectual Property: Patent law is challenging, and you'll want to take steps very early on to keep control of your ideas, secrets, customer information, and unique products. This can even apply to your marketing and advertising. You also want to make sure that your company doesn't infringe on copyrights or trademarks of other businesses. This is one of the easiest mistakes for startups to make.

How Do I Find the Best Startup Attorney in Cleveland, Ohio?

The first thing you need to find out is whether a client has passed the bar. The attorney must pass the bar through the Supreme Court of Ohio. They are also subject to tests for character, fitness, and moral qualifications. The Office of Bar Admissions of the Supreme Court of Ohio judges attorneys in these areas.

You should also verify that a lawyer doesn't have any complaints against them through the Office of Disciplinary Counsel of the Supreme Court of Ohio. Top lawyers in Ohio follow the Code of Professional Responsibility. Anyone with complaints against them is a questionable choice. You want to hire someone who practices law full-time and is in good standing with the court system.

Which Questions Should I Ask a Startup Lawyer?

Have you passed the bar exam?
Do you have any registered complaints against you?
How many startups have you worked with?
How many of them are still clients?
Can you offer any referrals?
How does your payment structure work?
Do you offer financing or payment plans for startups?
What would you advise about a hiring program?
Can you write an employee handbook for the startup?
Do you have experience with patents and trademarks?
Do you have time to take on a new client?
How often will you communicate?
Will you be the only contact? If not, who else from your company will offer legal advice?

Why use UpCounsel to hire a Cleveland Startup Attorney?

14 years

Average experience

You always get experienced professionals and high caliber work.

Faster

Your work gets done quickly because professionals are always available.

60%

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Legal Services Offered by Our On-Demand Cleveland Startup Attorneys

On UpCounsel, you can find and connect with top-rated Cleveland startup attorneys & lawyers that provide a range of startup law services for startups and entrepreneurs that are starting a business. Any of the top-rated Cleveland startup lawyers you connect with will be available to help with a variety of your startup law related legal needs on-demand or on an ongoing basis in the city of Cleveland, OH.

From primarily dealing with things like business formation, contracts, leases, equity financing, securities, and intellectual property protection, the Cleveland startup lawyers on UpCounsel can help you with a variety of specialized and general startup law related legal matters. No matter what type of startup law needs you have, you can easily hire an experienced Cleveland startup lawyer on UpCounsel to help you today.

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Reverse Vesting

8 min read

Updated October 15, 2020:

Reverse Vesting: What Is It?

Reverse vesting occurs when a company's co-founder receives his or her shares and ownership interest upfront. This exchange is subject to vesting similar to employee stock options. If the co-founder leaves, the company may repurchase a set amount of those shares.

The founder already owns all the shares with reverse vesting and may be forced to sell a specific percentage of them for no profit if the complete vesting period hasn't been finished. Reverse vesting is a term used to define a specific situation where an independent contractor or an employee gets stock that's subject for the company to repurchase at-cost. The right to repurchase lapses the vesting period.

This is the opposite of a normal situation, where a provider for a service gets the right to buy stock or an o

...

6 min read

Updated July 8, 2020:

Many entrepreneurs have "angels" watching over them, quite literally. These financial and advisory angels (or angel investors) are often responsible for the success or failure of a startup. There are no set rules to what angels can do for an entrepreneur and what they can expect in return. That's why angels are sought after with such intensity and why you must be especially vigilant in reviewing their offers.

What Are Angel Investors?

Angel investors are typically wealthy individuals or fellow entrepreneurs — rarely professional venture capitalists — who are willing to do whatever it takes to get a startup off the gro

...

5 min read

Pre-Money Valuation: What Is It?

Pre-money valuation (PMV) is the initial value of a company before any type of investment. The capital a business receives after its pre-money valuation is called post-money valuation.

Why Is Pre-Money Evaluation Important?

PMV determines the value of company shares.
Through PMV, an investor can determine the value of a company's shares.
Through PMV, anyone can calculate the total value of a company.
Using PMV, the parties involved with an investment can determine how much of the company each party controls after the investment.

How Pre-Money Evaluation Works

Think of PMV as a simple calculation that investors use to weigh the value of becoming a shareholder. A company with a PMV of $10 million that has 1 million shares has value of $10 per share. W

...

4 min read

Form S-1: What Is It?

Form S-1 is the initial registration form for companies that plan to take their company public. It's used to register their securities with the U.S. Securities and Exchange Commission (SEC). This form is required for all securities that meet the criteria set out by the SEC before the company can list shares on the national exchange.

When business owners take a company public, they must register any securities associated with that company in order to be added to the stock exchange. Securities, or financial instruments, provide people with a form of ownership over a company. These include such things as options, bonds, notes, debentures, and warrants.

Form S-1 is what companies use to register these financial instruments with SEC. If things change after filing and S-1 form or changes are needed in response to comments back from the SEC, an amendme

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6 min read

Updated July 16, 2020:

Tips to Successfully Open a Restaurant in California the Right Way

Opening a restaurant in California can be a daunting task. Along with researching the restaurant scene and learning both business and food-industry practices, starting a restaurant requires compliance with licensing procedures and food-service laws. California cities and counties have varying regulations and required permits, so it is important to double-check local laws. This guide will set forth the steps necessary for opening a restaurant.

1. Create A Business Plan

Just like starting an

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