It is important for Ohio entrepreneurs to take care of legal matters when forming a new business. Many start-ups fail to have in place basic legal documentation outlining each founder's role in the business. Many times, this is because the owners would rather spend the company's money on products and advertising rather than on legal matters. However, businesses that have legal documentation in place that gives a blueprint for what will happen if major changes take place or the company shuts down tend to be more successful than those that do not.
Legal agreements should be negotiated early in business's life. If there is a lack of clarity with regard to an individual's role in the company or the value of any ownership they may have, then unexpected surprises may lead to unpleasant legal disputes. Additionally, sourcing external financing will be easier with legal agreements in place since venture capitalists will look at these agreements before becoming an investor. Legal agreements are even more important when a business's products are strongly tied to intellectual property.