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3 Reasons Why You Need a Startup Lawyer

Reading time: 5 mins

You have got a great idea for a new business. You are ready to take the plunge, quit your day job, and get out there and make it happen. But before you start taking meetings or calling customers, you need to pause and think about how you will protect your fantastic new enterprise.

This is especially true if you are starting a tech company, because of all the legal issues that can come up with intellectual property. The short answer: hire a startup lawyer as soon as possible! Take it from us:

Do not risk getting sued or breaking any laws just because you do not know what is out there. Here are three big reasons why hiring a startup lawyer  is worth the money at this crucial stage in your business’ life cycle:

Author: Farrah Motley, Director of Prosper Law and a startup lawyer.

Protecting your startup

Protecting your startup from lawsuits.

The first reason why you need a startup lawyer is to protect your company from being a subject of litigation involving employees, customers, competitors, or government agencies.

If you are going to sell products on the market and create services that people can use, then there is always a chance that people may sue you for whatever reason.

Having a lawyer on retainer allows you to prevent lawsuits before they happen. This will save tremendous amounts of time and money in the long run.

startup lawyer

Helping you to draw up important contracts (and knowing when to use them)

A contract is an agreement between two or more parties, which is legally enforceable. The most common types of contracts include employment agreements, service agreements, and purchase agreements.

A well-drafted contract can be instrumental in protecting your business and allowing it to thrive in the long term. By involving a startup lawyer early on in your company’s development process, you can help ensure that any contracts that need to be drafted will be legally sound and comprehensive.

The following are some examples of clauses that may appear in business contracts: terms regarding payment (e.g., interest rates), termination (e.g., notice periods), and confidentiality (e.g., non-disclosure agreements and intellectual property agreements).

Keeping a finger on the pulse of new laws that affect your business

If you are a startup, there is a good chance that you are using technology to get your business off the ground. You probably have an idea for an application or website that will revolutionize one aspect of how people interact with each other or do business, and you want to bring it to market as quickly as possible. But before you go charging ahead full steam ahead, consider this:

New laws come out every day—and they can affect your business in ways you might not expect. It would be advantageous for your business to always be updated on the recently passed laws or case law doctrines. In this way, you can keep your business safe and trouble-free.

You need a startup lawyer when you run a business. Whether or not you are aware of it, you need to be aware of the law. You need to be aware of the legal implications of your actions. You also need to be aware of the legal implications of your inaction.

Finally, if you are running a business, then chances are that other people are relying on what you do—whether it’s employees or vendors or customers (or all three). And as such, they have rights that they can assert against you—and those rights may differ depending on whether they have an employment contract with you or not (for example) and/or whether they signed any other contracts with your company.


There are a lot of reasons why you need a lawyer, but the most important ones are, in short, protecting your startup and keeping it in compliance with the law. Laws and regulations surrounding startups change all the time. States also have their own unique laws that affect how businesses operate within their borders.

Luckily, there is an easy way to manage these issues: hire a startup lawyer.

Hiring one can be as simple as a phone call or email away from setting up an appointment or asking for an initial consultation. Through a startup lawyer, you can learn about what services they provide with clients like you who want customised plans designed around specific legal needs related to business growth or protection from future liabilities.

How can Prosper Law help?

Prosper Law is Australia’s online law firm. We provide legal advice to businesses and individuals across Australia. Our areas of legal practice include contracts, eCommerce, publishing, legal counsel, and employment law.

If you need to talk to a startup lawyer, get in touch today.

Contact the team at Prosper Law today to discuss how we can provide you with your legal needs for a fixed fee or at affordable hourly rates.

About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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About Prosper Law

We provide legal advice to business and individuals across Australia, no matter which State or Territory you are located. Our easy-to-access, online legal services mean that you can talk to our lawyers wherever you are, at a time that suits you.


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