6 Reasons Startups Need a Lawyer - Not Forms

Brian Privett, Attorney at Law

Stotts Law Group

STARTING A SMALL BUSINESS is exciting. You’ve got the idea, the drive, maybe even the branding. But when it’s time to get legal—registering your business, drafting contracts, protecting your brand—a lot of new entrepreneurs turn to self-help legal websites thinking they’re saving time and money.

Spoiler alert: that shortcut can cost you way more in the long run.

Here’s why working with a lawyer from the start isn’t just smart—it’s essential - 6 reasons why startups need a lawyer.

1. Templates Don’t Think Ahead—Lawyers Do

Legal websites give you generic, one-size-fits-all templates. But your business isn’t generic. A lawyer takes the time to understand:

• Your business model

• Your goals

• Potential risks

That means your documents are tailored to protect you now and as you grow. A template won’t ask you if your co-founder is funding the startup. A lawyer will—and make sure you’re both legally covered.

2. The Fine Print Can Bite You

Online legal tools might get the job done, but they won’t catch nuances that can cause problems later:

• Clauses that conflict with your state’s laws

• Gaps in partnership or operating agreements

• Vague language that could be weaponized in a dispute

These sites won’t be there when a client sues, or when a partner walks away and takes half the company with them.

3. You’re Building a Foundation—Make It Solid

The structure you choose (LLC, corporation, partnership) affects:

• Taxes

• Liability

• Investor appeal

• Compliance obligations

Legal sites often leave it to you to figure out what’s “best.” A lawyer helps you weigh your options and choose the right structure for the long-term health of your business.

4. Contracts Are Only as Good as Their Clarity

Contracts need to protect you from what might go wrong, not just document what you hope will go right. A lawyer makes sure:

• There are clear terms for payment, scope of work, dispute resolution

• You’re not stuck with a non-compete that cripples your next move

• You’re not signing away rights you didn’t even realize were on the table

5. Prevention Is Cheaper Than Litigation

Legal problems don’t show up when it’s convenient—they show up when it’s too late. Fixing a bad contract, cleaning up a botched formation, or settling a dispute costs way more than doing it right the first time.

Think of a lawyer as your legal insurance policy—except they actually help you avoid the mess entirely.

6. Legal Sites Aren’t Liable—Your Lawyer Is

When you use a template from a legal site, they often bury disclaimers that say “this isn’t legal advice” or “we’re not your lawyer.”

If something goes wrong, they’re not responsible.

But a licensed attorney is legally and ethically obligated to advise and protect you—and if they mess up, you have recourse.

Bottom Line: DIY Legal Might Work—Until It Doesn’t

You’re building a business with real potential. Don’t base it on cut-and-paste legal documents.

Hire a lawyer who knows small business, knows your state laws, and knows how to protect you.

Your future self (and your business) will thank you.

Brian Privett is an Attorney licensed in Kentucky and can be contacted at brian@stottslawgroup.com. This has been provided for general information only and does not constitute legal advice.