Paying Your Attorney as a Startup

Startups often struggle to balance their books and afford the necessities they need in order to implement their business growth strategies.

As part of scaling a business, a growing company will often need to consider technology and law to make sure they’re compliant. Any number of issues can arise during a company’s operations that may get them into legal trouble. And an attorney is necessary for counseling and guidance. Without one, many startups would simply be taking too great of a risk.

But how do you pay your attorney? A board seat or equity, many people say, isn’t the right way to go. Instead, fee deferrals are becoming the norm. Although a company may not have the necessary funds to pay their attorney in total at first, later on, they should be able to compensate their legal staff.

Once you get off the ground, attorney compensation will be much easier. But until then, it’s important to not put your company in a tough financial situation. Watch the full video by Martin Nichols and Stan Christensen for more on the topic.