Re:Ask HN: Does your lawyer attend your Board meetings?
by andrewljohnson on Saturday January 09, 2010 @11:16PM
(#1042629)
For us, our lawyer is an advisor, and he's a lawyer who only works with startups, so we like to hear what he has to say. We include him on board emails, meetings, etc.
However, we gave him some equity and his participation is otherwise free in this regard. We certainly couldn't pay someone hundreds of dollars an hour to give us advice right now.
Re:Ask HN: Does your lawyer attend your Board meetings?
by ScottWhigham on Sunday January 10, 2010 @10:29AM
(#1043164)
Has your attorney been an investor or successful business person other than just being an attorney? Whilst being an attorney can often give you great perspective and great vicarious experience, that doesn't necessarily translate to real-world experience as an entrepreneur. There are parables about listening to attorneys who offer business advice, you know...
When I need a lawyer I'll select one specifically based on their track record in that particular field.
Even if he's doing it 'for free' if there is legal work to flow out from that (and everybody will defer to the lawyer because of his great expertise) then you'll end up paying for it anyway. Smart marketing on their part.
You need a lawyer when:
- you're incorporating
- you make a major move (investment, layoffs, policy changes, exits, buyouts)
- when suing or being sued
Outside of that they're like a 5th wheel on a car.
Also, when I go to see a lawyer I make sure that I'm completely prepared, have a basic brief + all supporting documents. This will help a lot in keeping their hours down (and it really adds up, a simple out-of-court settlement will still cost you between 5 and 10 thousand bucks, going to court can easily go in to the 10's of thousands, especially when there are appeals).