Uncork Legal Representation Playbook
By Ashley Cravens
Starting a business can be challenging, and it can be overwhelming for entrepreneurs who are just getting started. One of the most important aspects of starting a new business is ensuring that you have proper legal counsel.
The early stages of a startup are critical to its success. During this time, startups must navigate complex legal issues, including intellectual property rights, contracts, employment law, and other legal matters. Without proper legal guidance, startups can make costly mistakes that can lead to significant legal and financial repercussions down the line. You should NEVER work with a firm that is not an expert in start-up law!
With this said, you shouldn’t always use your full-service firm for day-to-day GC tasks such as reviewing and drafting contracts, commercial contract negotiation, licensing, employee contracts, etc. A big law firm is fantastic for financing rounds, but are expensive and not needed on day-to-day GC needs.
When to use a full-service firm
Incorporation and Formation: They can advise on the best legal structure for a startup, such as a limited liability company (LLC), corporation, or partnership. They can also help draft articles of incorporation, bylaws, and other legal documents required for incorporation.
Financing Rounds: Using a full-service firm for financing rounds can have several advantages, including access to greater expertise, resources, network, credibility, and support. While big law firms may be more expensive, the benefits they provide may be worth the additional cost for startups seeking funding. (see below for standard costs)
M&A: Mergers and acquisitions (M&A) are complex transactions that involve significant legal issues. However, M&A transactions can also be risky, and without proper legal counsel, startups can face significant legal and financial challenges.
When to consider a Fractional General Counsel
A fractional GC will generally not replace law firm counsel. Rather, they supplement their services by handling day-to-day legal matters in a much more efficient and cost-effective manner.
Contracts: Startups frequently contract with suppliers, vendors, customers, and other parties. A fractional GC can speed time to closure on important business deals.
Intellectual Property: Startups often rely on their intellectual property (IP) to differentiate themselves from competitors. A fractional GC can help protect IP rights by registering trademarks, copyrights, patents, and other forms of IP protection.
Employment Law: A fractional GC can assist with drafting employment agreements, developing employee policies and procedures, and advising on compliance with employment laws.
Strategy: A fractional GC can Identify and creatively solve business issues and provide solid advice quickly and cost-effectively.
When to consider Common Paper’s standardized contracts (and forgo outside counsel)
Common Paper is a great tool for many common standardized contracts. Common Paper powers contract collaboration, negotiation, signing, and billing for revenue teams. Build trusted templates using our standard agreements, then leverage AI agents to negotiate, sign, and manage your contracts in a single workflow.
It’s important to note that there may be situations where hiring outside counsel is necessary, such as when dealing with complex legal issues or disputes.
