In the 15th episode of Fearless Founders, hosts Ike and Benoy sit down with Josh Freeman, founder of the law firm Freeman-Lovell, to discuss the critical legal considerations that entrepreneurs often overlook. With his extensive experience helping startups from launch to exit, Josh offers actionable advice on legal structures, equity management, and the importance of getting things right from the beginning.
One of the key topics Josh Freeman discussed in this episode is the common legal challenges that entrepreneurs encounter, especially in the early stages of their businesses. Many startups, he explained, make the mistake of using improperly drafted contracts or relying on internet templates that don’t fully address their specific needs. These shortcuts can lead to significant problems down the road, especially when co-founders or investors are involved.
Freeman-Lovell’s approach is tailored specifically to startups, providing legal support to help entrepreneurs navigate these challenges while protecting their long-term interests.
Josh’s law firm, Freeman-Lovell, has grown from a small practice to one with over 38 legal partners. What sets Freeman-Lovell apart is its focus on founders and small businesses. Josh emphasizes that most traditional law firms either cater to large publicly traded companies or lack the specialization to properly advise startups.
Freeman-Lovell bridges this gap by offering services specifically designed to help small businesses scale and succeed, from structuring the business to preparing for an exit.
One of the biggest legal pitfalls startups face is improper equity management. Founders often give away too much equity to early investors or co-founders without setting up vesting schedules, which can cause conflicts later on. Josh stressed the importance of founders maintaining control over their cap tables and using mechanisms like vesting schedules to ensure that equity is earned over time.
This protects the business from disputes and ensures that only those who continue to contribute to the company’s growth benefit from its success.
Convertible notes and SAFE agreements are popular ways for startups to raise funds quickly, but they come with risks. Josh warned that many founders don’t fully understand how these instruments can dilute their equity in future rounds of funding. A lack of understanding can lead to serious issues when startups try to raise additional capital or bring in institutional investors.
Josh emphasized the importance of running calculations and consulting with legal professionals before signing any agreements to ensure founders fully grasp what they are giving away.
Choosing the right legal structure is one of the first and most important decisions a startup must make. Josh outlined the differences between LLCs, C-Corps, and S-Corps, explaining that LLCs offer flexibility, while C-Corps are often the best choice for tech startups looking to raise institutional funding. S-Corps, on the other hand, are generally better for consulting or service-based businesses.
Josh advised founders to seek legal counsel early on to ensure they set up their business correctly, as changing entity types later can lead to costly tax consequences.
Freeman Level prides itself on offering founder-friendly legal services, particularly for startups with limited resources. The firm operates with flexible payment terms and creative solutions, ensuring that entrepreneurs get the legal support they need without breaking the bank.
Josh highlighted the importance of investing in proper legal advice early, even if resources are tight. The right legal guidance can save startups from costly mistakes and help them scale more effectively.
This episode of Fearless Founders offers invaluable insights for entrepreneurs looking to build their businesses on solid legal foundations. Whether it’s choosing the right legal structure, managing equity, or understanding the risks of fundraising instruments like convertible notes, the lessons shared by Josh Freeman are essential for any founder navigating the startup journey.
Join Benoy and Ike on the Fearless Founders podcast, where professionalism meets fun, and every episode is a step towards realizing your entrepreneurial dreams. Tune in on YouTube and Spotify, and visit their website for access to premium services that elevate your business journey. This is your opportunity to learn, grow, and thrive in the dynamic world of entrepreneurship.
In Episode 27 of Fearless Founders, we sit down with Fengmin Gong, a pioneering technologist and four-time exited founder, known for his instrumental roles in building companies like Palo Alto Networks and CipherOptics.
In this episode of Fearless Founders, Jeremy Glauser, a three-time exit entrepreneur, shares his journey of building and scaling multiple businesses. He opens up about the challenges of entrepreneurship, from navigating market timing to the emotional toll of setbacks.
In Episode 25 of Fearless Founders, we sit down with Tom Turner, a visionary leader in cybersecurity and a seasoned entrepreneur with multiple successful exits. With a career spanning decades in the tech industry, Tom shares his insights on building and scaling startups, aligning sales and marketing for growth, and the critical role of leadership in fast-moving industries.
In Episode 24 of Fearless Founders, Peter Harris, Managing Director of University Growth Fund, shares his remarkable journey from real estate and micro-franchising in Ghana to leading a venture fund in Utah. With years of experience evaluating startups and raising capital, Peter offers invaluable insights into when to raise funds, navigating investor relationships, and building successful businesses.
In this episode 23 of Fearless Founders, our guest, Clint Betts is a key figure in the startup and tech community, best known for founding Silicon Slopes and Kokomo. He has played a major role in fostering entrepreneurship, connecting leaders, and shaping Utah’s tech landscape.
In this episode 22 of Fearless Founders, Jeremy Docken is a seasoned entrepreneur and founder of Calderas, a healthcare technology company. With a background in accounting and forensic finance at Arthur Andersen and KPMG, he transitioned into the tech and pharmaceutical space, building innovative solutions.
In Episode 21 of Fearless Founders, Brandon Bliss shares his incredible journey from finance graduate to achieving five successful company exits. With over 20 years of experience, he unpacks strategies for elevating business growth, the value of mentorship, and the power of aligning your purpose with your business venture. Learn more how his eye-opening life story and practical lessons can inspire you to create a lasting impact on your team and unlock growth for everyone. Don’t miss this episode packed with actionable takeaways!
In Episode 20 of Fearless Founders, Daniel Mueller, a distinguished executive coach and mentor to entrepreneurs, unpacks the transformative power of asking questions, embracing mentorship, and overcoming fear-based leadership. This episode dives into real-life lessons, including the struggles and triumphs of founders who learned to ask for help and lean on their teams for strategic growth.
In Episode 19, we’re excited to spotlight Talal Kaakani, a dynamic entrepreneur and co-founder of a thriving bootstrap business, Bella Boo Bear which is recognized as one of the Inc. 5000 fastest-growing companies in the U.S. Talal shares his remarkable journey of scaling his company 300% year-over-year while balancing the challenges of managing operations, delegating to experts, and leading with vision. With lessons learned from taking control of in-house operations to embracing external expertise, Talal’s story is a testament to resilience, adaptability, and the power of calculated growth.
In Episode 18, we’re thrilled to feature Joe Kaiser from Mercato Partners—a Salt Lake City local and an accomplished investor with over eight years at the firm. Known as a leader and friend, Joe combines deep analytical expertise with a genuine, heart-centered approach. Having been involved in three startups himself and as a Northwestern University graduate, he brings invaluable insights into what it takes for founders to succeed. Joe shares his belief that a truly founder-friendly VC is someone who becomes the founder’s first call in times of need. His advice is the best we can share!
Tune in for inspiring advice and insights for what to become a successful founders.