Ask HN: Should I get lawyer?
I know there are a lot of steps involved in creating a startup and getting a lawyer is just one. But if I am planning on boot strapping a side project, I'm wondering what is the minimum legal protection I should get. For instance, one of my apps allows the embedding of youtube videos, which may be illegally put there. I'm wondering if I should incorporate to prevent being sued personally in the unfortunate event it comes to that.
3 comments
On one hand, you can do nothing and potentially get sued and go broke.
On the other, you can spend thousands on a lawyer and (maybe) reduce the impact of a lawsuit.
So it depends on your budget, risk appetite and appreciation of the legal system in your country.
A few points to keep in mind:
Even if you hire a lawyer, unless they have direct experience in this area, they'll just do their research on your dime. You can do it yourself. Maybe it will take longer and be less thorough, but you don't even have a business yet. Chances are (in general terms, not specific to you), you'll never actually launch.
I worked in private equity for numerous years and our businesses (min. profit ~$3m/year) rarely spent defensively on lawyers.
So it depends on your budget, risk appetite and appreciation of the legal system in your country.
A few points to keep in mind:
* You'll rarely get sued (in this context) if you don't have money
* Your friends can act as a proxy to their lawyers on retainer
* You don't need a lawyer to understand the legal landscape
* A lawyer's interests aren't always aligned with yours
* A lawyer can make your problems worse
* A lawyer can also save your arse
* A lawyer can help you sleep
Even if you hire a lawyer, unless they have direct experience in this area, they'll just do their research on your dime. You can do it yourself. Maybe it will take longer and be less thorough, but you don't even have a business yet. Chances are (in general terms, not specific to you), you'll never actually launch.
I worked in private equity for numerous years and our businesses (min. profit ~$3m/year) rarely spent defensively on lawyers.
I think it makes sense to get a lawyer at some point, but right now this would divert your attention away from your product, especially as you're bootstrapping it. As long as you have clear terms/policy statement outlining the usual (plenty of templates online) I think you'll be fine for now. Focus on the product, then worry about legals when you're ready.
Yes you should, if you cannot afford it then at least learn to file for a cooperation online, spend the $60-$100 and file via one of the online services. It is best to get a lawyer or an accountant to do it but with a little research you can do it yourself. After that do everything under the corporation and you should be fine.
Another alternative is to set up a Limited Liability Company (an LLC). An LLC is simpler and usually less expensive to set up than a corporation, and provides most of the same kinds of liability protection. However, if you expect that your side project may grow into a really large business, or if you ever plan to seek outside investment, a corporation would probably be a better choice.