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Business legal services in Silicon Valley

Two Things to Consider When Starting a Software Company

business lawyer

Starting a software company is an exciting enterprise. Tech folklore is full of stories of people building billion-dollar companies from ideas that were generated in their parents’ garage. The stakes are high. Successful ideas have made some people very rich. Poorly executed ideas have left other people in debt with unsurmountable financial losses.

The first step toward launching a software company is seeking advisory services from a commercial and business lawyer with experience advising software or tech companies from the get-go. A business lawyer will help advise your company about the business form it should take and the management of your company’s human resources.

Selecting a Corporate Entity

Choosing the right business form for your software start-up company will help you remain in control of your personal wealth and assets. Establishing a corporation or limited liability company in California provides you with a shield that protects your personal wealth and assets from the liabilities and debts of the business.

A commercial and business lawyer will provide guidance on the business form your new venture should adopt, and where it is best to incorporate.  It is best to seek out an experienced tax advisor, ideally a CPA, to understand any tax consequences of each business entity.

Once your new business is established a commercial and business lawyer helps your company prepare mandatory filings and comply with state and federal reporting regulations, to keep your business in good standing in California or any other jurisdiction in which your company does business.  

Setting Up the Team

Some of the earliest decisions a leader makes when launching a software company is building up the executive, business, production, and sales teams. Matching talent with the appropriate job function is a critical management function.

Positions can be staffed by employees, partners, or completely outsourced to independent contractors. Each job classification has its own rules with respect to compensation. Developing uniform compensation and benefits policies as well as job descriptions for all job functions is important.

Early on, your company needs to develop employment policies related to the hiring, supervision, training, and firing of employees. You will need to provide each employee with an employment handbook that contains the company’s rules and policies for employment. This is the foundation of all human resources departments. If your company will meet staffing needs with qualified independent contractors, such workers will need independent contractor agreements, with specific rules about what their duties and responsibilities are and how they will be compensated for performing those duties.  It is important to ensure the designation of an independent contractor is in compliance with California law.

Seek Software Company Legal Advice from a Knowledgeable Commercial and Business Lawyer

The Law Office of Lynnette Ariathurai can help you turn your ideas into a software company. A Fremont commercial and business lawyer can partner with you to build a lasting relationship that helps your concept grow and succeed. Contact us today for an initial consultation. Located in Fremont, CA, we serve Newark, Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, and Santa Clara CA. We look forward to putting our experience to work for you.