The entrepreneurial law attorneys at Avisen Legal each have decades of experience advising entrepreneurs and early-stage companies on strategies and processes to start and build new enterprises. The Avisen team regularly helps in selecting and organizing the right form of entity to operate new businesses, to developing the equity and other incentive arrangements to attract and retain key employees, to counseling on the opportunities and rules of fundraising.

Attracting and retaining key talent will require agreements with employees, consultants and advisors.  Many early stage companies incorporate equity compensation arrangements into these agreements to preserve precious cash and align the long-term interests of all parties.  Typically, the company will adopt an equity incentive plan to set aside a portion of its share capital for these purposes.  Of course, developing the company’s first customer-facing agreements is often an early priority with start-up companies.

After raising initial capital from friends and family, most startups are still not in a place where they can garner traditional bank financing unless they have principals with substantial net worth to personally guarantee the debt.  Accordingly, raising funds from “angel” investors (in many cases being successful entrepreneurs in their own right) is customarily the next stage of funding for many companies.  The lawyers in the Avisen Legal entrepreneurial team have together negotiated thousands of investment agreements with angel investors and understand and provide counsel regarding the intricacies of these arrangements

If you develop a unique product or service, you may be able to obtain federal and/or foreign patent protection for your idea.  Patents essentially give the inventor a monopoly to commercialize the idea for a set number of years.  If your intellectual property is not well-suited to patent protection, the use of confidentiality agreements and trademark and copyright protection are often incorporated into an IP protection strategy.  The Avisen Legal entrepreneurial law team can help sort this all out.

For start-up enterprises organized as corporations, we often recommend adoption of an equity incentive plan that allows for granting options and other forms of equity compensation to officers, directors, employees, consultants and advisors.  These plans incorporate provisions that may offer tax advantages to option recipients.  If your business is organized as a limited liability company, we often recommend the use of instruments called “profits interests” to provide tax-efficient equity grants for these recipients.

Although Avisen Legal is not a broker-dealer, we regularly assist our clients in connecting with investor prospects.  Our many years of representing entrepreneurs and investors has given us the opportunity to meet with and befriend many investors and gain insight into their investing preferences.  This facilitates our ability to best match specific investor introductions to our clients’ capital requirements and businesses.

We regularly work with bankers, accountants and financial advisors that focus on entrepreneurs and the requirements for their startup and growing enterprises.  We facilitate introductions when appropriate to help our clients access these resources.

Many of our clients nowadays use PowerPoint presentations not exceeding 12 minutes to guide investor discussions.  Your presentation should cover the problem you have identified, the market opportunity involved in addressing it, your solution to the problem, how you mitigate or navigate regulatory and other roadblocks, the competitive landscape, your go-to-market strategy, the team you’ve assembled to execute on your plan and your capital requirements.

Most entrepreneurial startups are organized as corporations or limited liability companies.  The Avisen Legal entrepreneurial law team can help you choose the form of entity (and the jurisdiction to form it in) that best suits your needs, based on your capital fundraising plans, the type of business you are building and the personnel you need to attract and retain to accomplish your plans.

A service agreement typically refers to the customer-facing agreements by which your customers engage your business to provide products or services.  These agreements are often heavily negotiated, particularly with enterprise-class customers.  The Avisen Legal entrepreneurial law team is well-versed in these arrangements and can help develop a master agreement properly tailored for your business requirements.

We normally recommend that you form your business entity when you first plan to bring on any team members, raise capital or enter into contractual relationships with third parties.

Assuming that you issue an equal amount of equity to each of the founders, each one will have an equal right to share in the profits and losses of the business and to participate in voting for management.  Normally, those who own a majority of the voting rights control all affairs of the company, so four equal owners can create problems.  In situations like this, we recommend that the founders enter into a buy-sell or voting agreement to properly set expectations as among the group.  The Avisen Legal entrepreneurial lawyers can help design and implement these arrangements.

Typically, the corporation itself issues out new shares to the additional incoming owners.  This often is the most tax-efficient way of bringing on new shareholders.  Note, however, that each new issuance has the effect of diluting the ownership interest of those who already are owners at the time.

Confidentiality agreements with your employees, contractors and customers are a common way to protect your intellectual property and business secrets.  Failing to make use of these agreements can, in fact, be used as evidence against your company if a competitor copies your business ideas and processes or hires a former employee of your business.  We think they are essential in today’s business world.

This is a very fact specific question with significant tax implications, as the business can be pursued by the IRS and state taxing authorities for failing to withholding payroll and income taxes from workers improperly categorized as independent contractors.  If the business controls the time, place and manner of an individual’s service performance, there’s a higher likelihood that, on audit, the taxing authorities will maintain that the individual should be treated as an employee.  The Avisen Legal team can help you sort out the risks and benefits of your classification of various service providers to your enterprise.

You should contact us right away so we can help you form the entity and complete the negotiations and documentation for your proposed financing.  Often, there are many documents that must be created to give effect to a letter of intent, so don’t wait until the day before you want to close on the funding to reach out to the Avisen Legal entrepreneurial team for assistance.

Issuing stock (or membership units in a limited liability company) to founders in exchange for their work to organize the business is very common.  It is important to structure these arrangements correctly to avoid adverse tax consequences and to ensure that all equity recipients are properly incentivized to remain with the new enterprise over an extended period.  The Avisen Legal entrepreneurial team can assist in counseling and documenting these arrangements.

Entrepreneurial law encompasses legal services tailored to the unique needs of startups and early-stage companies. It includes business formation, contract negotiation, intellectual property protection, fundraising, compliance with regulations, and strategic legal advice to help entrepreneurs navigate the complexities of starting and growing a business. 

Entrepreneurial law serves startups, small businesses, and early-stage companies across various industries, including technology, healthcare, renewable energy, consumer products, and more. These clients often seek legal guidance to support their innovative ventures and business growth. 

Entrepreneurial law handles issues such as business formation, shareholder agreements, intellectual property protection, financing and investment, employment contracts, regulatory compliance, and strategic planning. These legal services help entrepreneurs address challenges and seize opportunities at every stage of their business. 

Avisen Legal supports entrepreneurs by providing legal advice and services tailored to their unique needs. Our team assists with business formation, securing funding, protecting intellectual property, drafting contracts, and navigating regulatory requirements. Our attorneys have extensive experience working with startups and early-stage companies, offering practical solutions to drive business success. 

During an initial consultation with Avisen Legal, you can expect a thorough discussion of your business goals, challenges, and legal needs. Our attorneys will assess your situation, provide preliminary advice, and outline a strategic legal plan to support your entrepreneurial venture. This consultation aims to establish a clear understanding and a collaborative relationship. 

Avisen Legal assists with intellectual property protection by advising on patents, trademarks, copyrights, and trade secrets. We help entrepreneurs develop strategies to safeguard their innovations, draft and file necessary documents, and enforce IP rights to prevent unauthorized use. 

Startups have several funding options, including bootstrapping, friends and family investments, angel investors, venture capital, and crowdfunding. Avisen Legal provides guidance on these options, helping entrepreneurs prepare for fundraising, negotiate terms, and secure the capital needed for growth. 

Avisen Legal helps with business formation by advising on the best legal structure (e.g., corporation, LLC), drafting and filing formation documents, and setting up governance structures. We ensure that your business is legally compliant and positioned for future growth and investment. 

Hiring an entrepreneurial lawyer provides startups with expert legal guidance, risk management, and strategic advice. This support helps entrepreneurs navigate legal complexities, avoid pitfalls, and make informed decisions that drive business success and growth. 

Avisen Legal supports business transitions by providing strategic legal advice and resources for mergers, acquisitions, sales, and succession planning. Our Business Transition Planning Guide offers practical insights to help entrepreneurs make informed decisions and ensure smooth transitions. 

Avisen Legal assists with regulatory compliance by providing guidance on applicable laws and regulations specific to your industry. We help ensure that your business practices align with legal standards, prepare necessary filings, and implement compliance programs to mitigate risk and avoid penalties. 

Common pitfalls for entrepreneurs include inadequate legal structure, poor contract management, insufficient IP protection, and regulatory non-compliance. Avisen Legal helps avoid these pitfalls by providing strategic legal advice, thorough documentation, proactive risk management, and comprehensive support tailored to the unique challenges faced by startups.