Key Considerations for Selecting the Right Corporate Attorney for Your Tech Startup

Starting a tech company is a complex journey that requires careful planning and strategic decision-making. One of the critical steps is selecting the right corporate attorney to guide you through the various legal issues that may arise. This article will explore the factors you should consider when choosing a corporate attorney and whether hiring an in-house attorney or partnering with an external firm would be more suitable.

External Corporate Attorney for Tech Startups

For many tech startups, working with an external corporate attorney initially is often the best approach. An experienced attorney with a firm that has previous big firm experience and extensive experience advising startups and smaller growth companies is highly recommended. Such a legal professional should be able to provide a wide range of services, including corporate formation, equity structure advice, and basic IP issues.

When selecting an external attorney, it's important to consider the following:

Network of Specialists: Many solo corporate attorneys have a network of high-quality attorneys who specialize in areas such as IP, employment, and tax, which can be brought in on an as-needed basis. This ensures that your legal needs are met comprehensively. Experience and References: Inquire about the attorney's experience and the types of clients they currently advise. Additionally, ask who they turn to for specific expertise and ensure their referral network is strong. Billing Rates: Understand the billing rate structure to budget appropriately and ensure that the legal costs align with your startup's financial constraints.

If you plan to enter into significant strategic partnerships, mergers and acquisitions (MA), or equity financing, you can always refer to a larger firm with more resources. This can provide the necessary depth for complex transactions.

In-House Corporate Attorney for Tech Startups

Another option is to hire an in-house corporate attorney. A recent graduate might be ideal for this role, as they will still be learning and have a good overall understanding of the issues affecting your business.

Generalist Potential: A recent grad or a generalist attorney will bring a fresh perspective and can quickly become familiar with your company's needs. They will be too busy trying to understand what you are doing to actively run your business, which is beneficial for your startup. Flexibility: Unlike external attorneys, an in-house attorney can be more flexible in terms of availability and responsiveness, which is crucial for startups. Cost-Effective: Hiring an in-house attorney can be cost-effective, as they are paid employees rather than billed on an hourly or project basis.

In some cases, you may consider hiring a JD/CS degree candidate. They do not need to be admitted to the bar to work as an in-house attorney, and it is possible for them to work as a programmer too, providing dual skills that can be valuable to a tech startup.

Ensuring Responsiveness and Understanding

For both types of corporate attorneys, it is crucial to ensure that responsiveness is prioritized. Small startup clients often face challenges with either getting lost in the shuffle at a larger firm or having a solo attorney who is frequently unavailable or slow to respond. Clear communication and expectations should be set from the beginning to avoid these issues.

Conclusion

Selecting the right corporate attorney is a vital step for a tech startup. Whether you choose an external attorney or an in-house one, make sure they have the experience, network, and responsiveness that your startup needs. Whether you need comprehensive legal services at a startup-friendly rate or someone who can be a flexible, in-house resource, the right choice can make a significant difference in your company's growth and success.