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Heard a paralegal say boilerplate contracts are fine for startups. Disagree hard.
I was at a coworking space in Portland last week and overheard a paralegal tell a founder that generic templates from LegalZoom work for most small businesses. That advice is a recipe for disaster. One missed clause about IP assignment or indemnification can cost you $5,000 plus in court fees. Has anyone else run into real problems from using free templates instead of a proper lawyer reviewing them?
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murray.drew24d ago
Read somewhere that something like 70% of startups using boilerplate contracts end up with legal headaches within the first year. A good lawyer catching those gaps upfront is way cheaper than fighting in court later.
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miles_roberts23d ago
Ugh tell me about it! I once signed a boilerplate so bad it basically said I could be bought out for a firm handshake and a free pizza.
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rubyshah24d ago
Oh man that advice makes me cringe so bad! I used a free template for my first business and totally missed the clause about independent contractor vs employee classification. That mistake cost me over $3k in back taxes and penalties when the state audited me two years later. Paying a real lawyer $800 upfront to review everything would have been way cheaper in the long run.
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