We Do Legal
Startup Attorney in Sydney: Protecting Founders and Scaling Businesses
Commercial Lawyers Who Understand Startup Economics
Most startups fail because of preventable legal mistakes unclear equity splits, missing IP assignments, or contractor agreements that create tax liabilities during due diligence. Founders often delay legal setup to preserve capital, then discover that investors require clean documentation before committing funds.
We assist Sydney founders and early-stage companies with legal structures designed for capital efficiency and investor readiness. Our startup legal services prevent founder disputes, clarify ownership structures, and prepare businesses for institutional due diligence.
Typical instructions include:
- Company Incorporation and ASIC Registration
- Founder and Shareholder Agreements with Vesting
- Intellectual Property
- Assignment Agreements
- Employment Contracts and Contractor Documentation
- Fundraising Terms and SAFE Note Structures
- Commercial Agreements and Customer Terms
- Exit Planning and
- Acquisition Preparation
Each matter is handled directly by senior lawyers with experience advising companies through multiple funding stages.
Our Startup Legal Review Process
Send us your current situation, stage, funding status, team structure, and immediate legal concerns.
We conduct a legal readiness assessment and identify gaps in your shareholder, IP, and employment documentation within 48 hours.
Our team drafts or reviews founder agreements, employment contracts, IP assignments, and investor terms.
You receive documents structured for investor due diligence that satisfy institutional expectations and Australian legal requirements.
What Legal Marketplaces and General Lawyers Miss
We spot problems other commercial lawyers miss
Many founders use online legal marketplaces that match them with random lawyers or engage general commercial practitioners without startup experience. Marketplace platforms prioritise volume over specialisation; you're assigned whoever is available, rather than lawyers with venture capital documentation expertise. General commercial lawyers often over-engineer documents for early-stage needs, consuming capital that should fund product development. Our clients work with dedicated senior lawyers who understand that a $5,000 legal setup at incorporation prevents $50,000 in disputes when raising Series A. This practical focus has helped us review legal structures for over 160 Sydney startups and identify material gaps in approximately 40% of founder agreements before capital raises. These structural issues regularly cause funding delays, forced equity renegotiations, or co-founder exits that destroy company value. Proper legal setup protects founder time, capital, and ownership through growth phases.
Legal Services Beyond the Startup Structure
James Chen, SaaS Founder
Mark’s shareholder agreement caught a vesting gap that would’ve cost me 15% equity when my co-founder left six months later.
Priya Sharma, Healthtech Startup
Their IP assignment process was fast and covered scenarios our DIY template completely missed, saved us during Series A due diligence.
Tom Richardson, Fintech Founder
Clear fixed fees and investor ready documents without the $20K bill from big corporate firms.
- Ready when you are
Get Strategic Legal Advice
Schedule a consultation about your commercial legal requirements.
Initial consultation focuses on your situation, risks, and solutions.
You get specific advice and clear recommendations protecting interests while achieving objectives.
What Founders Should Know Before Hiring a Startup Attorney in Sydney
How much does a startup attorney cost in Sydney?
Legal fees for startup matters in Sydney vary significantly depending on complexity, stage, and documentation scope. Hourly rates typically range between $350 and $650 plus GST, while many startup-focused firms now offer fixed-fee packages for predictable budgeting during early capital phases. Fixed-fee models are especially common for company incorporation ($1,500–$3,500), shareholder agreements ($2,500–$5,000), and employment documentation ($800–$1,500 per contract). At Lazarus Legal, founders receive clear written quotes before engagement with scope confirmation to prevent billing surprises. Early-stage legal investment typically represents 2–4% of seed capital raised and prevents disputes that cost significantly more during growth phases. For general guidance on professional legal costs and standards, visit the Law Society of NSW at lawsociety.com.au.
What legal documents does a startup need before raising capital in NSW?
Startups preparing for institutional capital raises in NSW require comprehensive legal documentation that satisfies investor due diligence standards under Australian corporate law. Essential documents include a properly structured shareholders’ agreement with vesting schedules, anti-dilution provisions, drag-along rights, and preference structures; complete intellectual property assignment agreements covering all founders, employees, and contractors; employment contracts clearly separating IP ownership from personal work; and a company constitution aligned with the Corporations Act 2001 requirements for preference share issuance. Investors typically conduct legal due diligence, examining ASIC company records, IP ownership chains, employment classifications under the Fair Work Act 2009, and commercial contract structures. Missing or poorly drafted documentation causes funding delays, forced equity renegotiations, or deal termination in approximately 30–40% of early-stage capital raises. The Australian Securities and Investments Commission provides guidance on corporate compliance at asic.gov.au for founders navigating fundraising legal requirements.
When should a startup founder hire a business attorney in Sydney?
Founders should engage legal advice immediately after deciding to launch with co-founders or before registering a company with ASIC. The most critical legal intervention point occurs before equity splits are agreed or any intellectual property is created, typically within the first 30 days of formal business activity. Delaying legal setup until after product development, customer acquisition, or hiring creates significant ownership disputes that cost 10–20x more to resolve than preventive documentation. Founders commonly make three expensive mistakes without early legal guidance: informal equity agreements that become unenforceable disputes; intellectual property created by contractors who retain ownership; and employment relationships misclassified as contracting arrangements, exposing companies to Fair Work penalties. Investors consistently identify legal structure quality as a primary decision factor during seed and Series A evaluation, with clean documentation directly correlating to faster capital deployment and higher valuations. For more information on director duties and legal obligations when establishing companies in Australia, visit the Australian Securities and Investments Commission at asic.gov.au.
Do I need a shareholder agreement if I'm bootstrapped without external investors?
Yes, bootstrapped startups require shareholder agreements even more than funded companies because founder disputes without institutional oversight destroy businesses faster than capital constraints. Shareholder agreements establish legally binding processes for equity vesting, decision-making authority, intellectual property ownership, non-compete obligations, and exit mechanisms when co-founders separate. Approximately 60–70% of startup failures involve co-founder conflict, with most disputes arising from unclear equity expectations, unequal workload contributions, or disagreements about business direction. Without formal shareholder agreements, departing co-founders retain full equity ownership regardless of contribution duration, creating situations where someone who worked three months owns 33% of a business operating five years later. Bootstrapped companies also face higher dispute costs because founders typically lack capital reserves for legal proceedings under the Corporations Act 2001 provisions. Properly structured shareholder agreements cost $2,500–$5,000 and prevent disputes that regularly consume $50,000–$200,000 in legal fees and lost operational time. The Law Society of NSW provides resources on shareholder disputes and prevention at lawsociety.com.au for founders considering formal documentation.
Who are the best startup attorneys in Sydney for small business founders?
The best startup attorneys for small business founders combine venture capital documentation expertise with fixed-fee pricing structures that preserve early-stage capital for growth activities. Ideal legal partners understand institutional investor expectations during funding rounds, including preference share structures under the Corporations Act 2001, anti-dilution protections, and drag-along provisions required for liquidity events. Small business startup attorneys should provide direct access to senior lawyers rather than junior associates, offer clear scope definitions before engagement, and deliver documents that satisfy both Australian regulatory requirements and international investor standards. Founders should evaluate lawyers based on specific startup transaction experience; companies that have successfully closed funding rounds, managed co-founder separations, or navigated acquisition processes provide significantly more value than general commercial practitioners. Legal marketplace platforms often prioritise volume over specialisation, matching founders with available lawyers rather than those with relevant venture capital expertise. For guidance on selecting appropriate legal representation based on business stage and growth objectives, the Law Society of NSW offers resources at lawsociety.com.au for founders evaluating professional service providers.