Every startup has the potential to change the world and be financially successful. But your chances of achieving success and staying in business are lower without a startup lawyer. Unfortunately, some law firms can charge prices that are way too high for a startup legal budget. So, as an entrepreneur, you need to ask yourself “How much does a startup spend on legal fees?”
Startups should think of legal fees in two phases: the basics and the brand protection. By separating your startup legal needs into these two initial phases, you can better visualize what legal services you actually need and how much to spend.
The basic startup legal services should include company formation, choosing a safe brand name, and creating your basic legal contracts. Company formation will vary for each startup, but this could be as simple as creating a single member LLC to incorporating your startup as a stock corporation. This startup legal cost can be as little as a few hundred dollars to a few thousand depending on whether you need a simple LLC or a complex corporation with shares.
Startups must also confirm their name is safe, so they avoid costly trademark infringement. A startup lawyer can help by conducting a trademark clearance search to ensure your brand name is free from legal risks. Finally, entrepreneurs need basic legal contracts for hiring contractors and working with clients. While the scope of these basic startup legal services may vary, a startup should expect to spend two to three thousand dollars for these basic startup costs.
Once a startup has its basic legal needs met, it must then consider brand protection. This usually includes filing a trademark application for its name or logo and preparing its website or mobile app terms and conditions. A trademark application will protect your startup’s name from competitors. Because the process takes over a year to complete, startups should trademark their brand as quickly as their budget allows.
An experienced startup lawyer will also recommend creating terms and conditions for your website or mobile application. These terms and conditions serve as the legal contract between your company and people who visit your website or download your app. Terms and conditions protect you from legal risk and allow you to use the Apple and Google Play Store. A reasonable startup legal budget for these services will vary between two thousand and four thousand dollars depending on how complex are your startup brand, website, or legal risks.
For a in-depth discussion on potential startup costs for your new business, check out our blog on How Much Does a Lawyer Cost to Start a Business?
If you need an experienced startup attorney at a reasonable cost, The Social Media Law Firm can help. Contact us for a free consultation to see how we can work within your startup budget.
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