Starting a business is an exciting journey, but founders face a myriad of legal considerations. Choosing the right law firm can make a significant difference in the growth, compliance, and protection of your startup. Asking the right questions upfront ensures you find a legal partner who understands your business, its risks, and its long-term goals.
Here are 10 essential questions every founder should ask a law firm before engagement.
1. Do You Specialise in Startup and Commercial Law?
Not all law firms are equally experienced with startups. Founders should ask whether the firm has expertise in areas such as:
- Company formation and structuring
- Intellectual property (IP) protection
- Shareholder agreements and investment documentation
- Employment law and workplace compliance
- Commercial contracts and transactional work
A law firm familiar with startups can provide practical, commercially-focused advice rather than just legal theory.
2. Have You Worked With Startups in My Industry?
Industry-specific knowledge is valuable. For example, technology startups face unique IP and compliance challenges, while healthtech companies must navigate healthcare regulations. Asking this question helps ensure the law firm understands your industry’s legal landscape and can anticipate potential risk.
3. How Do You Charge for Services?
Understanding fees upfront is crucial for cash-strapped startups. Questions to ask include:
- Do you offer fixed-fee packages or hourly billing?
- Are there options for milestone-based or project-specific billing?
- What costs are included in your engagement?
Transparent pricing prevents surprises and helps founders budget effectively.
4. Can You Assist With Fundraising and Investment Agreements?
Startups often need legal support for investment rounds. A competent law firm should be able to:
- Review term sheets and shareholder agreements
- Advise on rights and obligations of investors
- Ensure compliance with the Corporations Act 2001 and ASIC requirements
This ensures founders can raise capital confidently while protecting their equity and control.
5. What Support Do You Provide for Intellectual Property?
IP is frequently the most valuable asset for a startup. Founders should ask how the law firm can assist with:
- Trademark, copyright, and patent registration
- IP assignment for founders and employees
- IP protection strategies in Australia and internationally
Securing IP early protects your innovation and prevents costly disputes later.
6. Can You Draft and Review Commercial Contracts?
Commercial contracts are the foundation of business relationships. A law firm should provide:
- Drafting and reviewing client, supplier, and partnership agreements
- Negotiation support to protect business interests
- Guidance on contract enforceability under Australian commercial law
Effective contracts reduce the risk of disputes and provide clarity in business operations.
7. Do You Offer Employment Law and HR Compliance Advice?
As startups scale, employment issues become more complex. Founders should ask whether the law firm can advise on:
- Employment contracts, contractor agreements, and workplace policies
- Fair Work Act compliance in Australia
- Confidentiality, non-compete, and IP assignment clauses for employees
Legal guidance in this area safeguards both the business and its team.
8. How Do You Handle Disputes and Litigation?
Even well-prepared startups may face disputes. Founders should understand the law firm’s approach to:
- Shareholder or partnership conflicts
- Contractual or IP disputes
- Commercial litigation strategies and alternative dispute resolution
Early involvement from a law firm can prevent small disputes from becoming costly legal battles.
9. Do You Provide State-Specific Legal Guidance?
Australian law has federal and state-specific elements. For example:
- Employment and industrial relations rules differ by state
- Commercial leases and property law vary across Victoria, New South Wales, Queensland, etc.
- Licensing and regulatory requirements can be state-specific
A law firm familiar with your state ensures compliance with local laws and avoids unexpected liabilities.
10. How Do You Support Founders Beyond Legal Advice?
Finally, founders should consider whether the law firm provides value beyond traditional legal services, such as:
- Educational resources, workshops, or webinars
- Startup-focused templates or checklists
- Strategic guidance aligned with business growth
A proactive law firm can help founders understand legal risks, make informed decisions, and navigate the startup ecosystem with confidence.
Conclusion
Choosing the right law firm is one of the most important decisions for any founder. By asking these 10 questions, startups can ensure they partner with a firm that:
- Understands startup and commercial law
- Offers practical, industry-specific advice
- Provides transparent and flexible billing
- Supports business growth, compliance, and risk management
Engaging the right law firm early can protect your business, safeguard your intellectual property, and give founders the confidence to focus on scaling their venture.
Remember, the best law firm for your startup is not just a legal service provider—they are a strategic partner who understands your vision and helps you navigate the complex legal landscape of running a business in Australia.
