Startup Business Package

Start with confidence

Starting a business takes investment in premises, fit-outs, marketing and stock. Legal advice and documentation are equally important to protecting what you build. Etienne Lawyers offers a partnership approach designed to help new businesses establish sound legal foundations while deferring payment of professional fees on agreed terms.

Legal support for your new business

Depending on your business and circumstances, the documents and advice you may need include:

• Terms and conditions of trade
• Credit applications
• Charge documentation for funds lent to the business entity
• Employment and consultancy agreements
• Advice on property leases, equipment leases and finance leases
• Establishment of a family trust
• Company incorporation
• Trademark applications
• Documents for transferring an existing business to a company
• Shareholders agreements

A different approach to legal fees

Under the proposed arrangement, professional fees are deferred until 18 months after you first engage us, or until the sale or amalgamation of the business if that happens earlier. Two alternative payment structures are outlined below. The applicable scope, documentation and terms would need to be agreed for your business.

Option 1 — Deferred payment with security

This option involves a scope of work to secure a general security agreement over the business. No payment is required until 18 months after engagement. Interest accrues on fees at 12% per annum. After 18 months, fees and interest are paid at a minimum rate of $1,000 per month until fully paid.

Option 2 — Redeemable preference share

Under this option, Etienne Lawyers receives a redeemable preference share in your company with the following rights and entitlements:

1. The right to receive 7.5% of the business profits each year.
2. The right to receive 7.5% of the business sale price if the business is sold.
3. The company may redeem the share at any time by paying our fees plus interest accrued and capitalised at 10% per annum.

Profit distributions do not reduce the amount payable to redeem the share. For example, if professional fees are $15,000 and $5,000 has already been paid as dividends on the preference share, redemption still requires payment of the $15,000 in fees plus applicable interest.

Indicative costs

The original package estimates total fees and related costs of approximately $15,000, including professional fees, disbursements, counsel’s fees and other charges incurred on your behalf. The actual amount depends on the work required and time spent. This figure is indicative, not a fixed-fee quotation.