The myth of the "right time"

Most founders operate under the assumption that lawyers are for when things go wrong. You sign the contracts yourself, handle the agreements informally, and tell yourself you'll get proper legal advice when the business is bigger.

The problem is that by the time things go wrong, the cost of fixing them is almost always higher than the cost of preventing them would have been. Legal advice isn't a reactive tool — it's a protective one.

When you're starting out

The moment you take on a co-founder, you need a shareholder agreement. Full stop. It doesn't matter how well you know the person or how aligned you feel right now. A shareholder agreement defines what happens when things change — and things always change.

Similarly, if you're operating under a company structure, your articles of association and founding documents need to reflect how you actually intend to run the business. Generic templates downloaded from the internet rarely do.

When you're hiring

Employment law is one of the most frequently misunderstood areas for growing businesses. The distinction between an employee and a contractor carries significant legal and tax implications. Getting it wrong — intentionally or not — can result in backdated liability that damages both your finances and your reputation.

Before you bring on your first employee, have your contracts reviewed. Before you engage a contractor for a long-term project, make sure the relationship is structured correctly.

When you're signing anything significant

A significant contract is any agreement that involves substantial money, a long-term commitment, exclusivity, intellectual property, or personal liability. If any of those elements are present, a lawyer should review the document before you sign.

The review doesn't need to take long. An experienced commercial lawyer can assess a standard contract in an hour or two. The cost of that review is almost always less than the cost of the dispute it prevents.

When you're raising money

Investment documents are complex, heavily negotiated, and almost always drafted in favour of the investor. Before you accept any term sheet — regardless of how excited you are about the deal — have it reviewed by a lawyer who understands venture and growth financing.

Pay particular attention to liquidation preferences, anti-dilution provisions, and board composition rights. These clauses can have a profound impact on your position as a founder if the company is ever sold or refinanced.

When something feels wrong

If a client relationship has deteriorated, a supplier is failing to perform, or a former employee is making claims against your business — don't wait. The earlier you get legal advice in a dispute, the more options you have. Waiting rarely improves your position and almost always limits it.

The bottom line

You don't need a lawyer for every decision you make. But you do need one at the moments that define your business — when you're starting, when you're growing, when you're signing, and when you're in trouble.

Lawden works with founders at every stage. If you're not sure whether you need legal advice, the answer is probably yes.