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Top Ten Legal Mistakes Made by Entrepreneurs
Posted in Growth
"In Bagley's view, there is a tendency on the part of many entrepreneurs to think that the lawyers can handle the legal issues and to delegate too much to the attorney.
"While the language of the law can be intimidating, the concepts are usually quite straightforward, she says. Lawyers tend to be risk averse, and if you delegate to them you will usually stay out of legal trouble but can often compromise your business objectives."
# 10: Failing to incorporate early enough.
One problem that arises here is the so-called "forgotten founder": a partner involved in starting the venture subsequently drops out. When the venture gets financing or is ready to go public, this partner returns, perhaps with an inflated view of what his or her contribution was, demanding equity. This problem can be eliminated by ..."
Read the full article in The Harvard Business School Working Knowledge, published March 3, 2003.