Due diligence is a critical step in fundraising, acquisitions, or partnerships. Investors and buyers scrutinize your startup’s legal structure closely. A well-prepared legal foundation minimizes risks, avoids surprises, and accelerates deals.

Here’s how founders can get their legal house in order 🏠.
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Why Legal Structure Matters

Your corporate structure defines ownership, liabilities, governance, and tax treatment. Common startup structures include C-Corps, LLCs, and partnerships.

A clean, compliant legal setup signals maturity and professionalism to investors 💼.
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Key Areas to Review Before Due Diligence

📄 Corporate documents: Articles or Certificate of Incorporation/Formation, bylaws, operating agreements

📊 Cap table and equity records: Ownership, option grants, vesting schedules, incentive plans

🧠 Intellectual property (IP) rights): Patents, trademarks, copyrights, and assignment agreements

📃 Contracts: Employment agreements, vendor/customer contracts, NDAs

🏛️ Compliance: Tax registrations, licenses, permits, regulatory filings

⚖️ Litigation history: Pending or past legal disputes must be disclosed transparently
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💬 If you want to avoid last-minute surprises, connect with Lazo’s experts, who will guide you through every step of due diligence prep.
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Steps to Prepare Your Legal Structure

Conduct a legal audit 🔍
Identify gaps or inconsistencies with the help of legal counsel.

Clean up your cap table 🧼
Ensure all equity grants and transfers are documented correctly.

Secure IP ownership 🛡️
Confirm that all IP developed by employees or contractors is properly assigned to the company.

Update contracts and agreements 📝
Standardize terms and resolve any expired or missing contracts.

Ensure compliance ✅
File all required documents and tax returns up to date.
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Ready to grow your Startup?

Book a free call with our experts today!

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How Lazo Can Help

Our network of experts partners with your team to guide you through the due diligence prep process — from document review to strategic advice, so you’re ready when investors come knocking.
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🎯 Don’t leave your legal structure to chance.
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Book a session with Lazo’s experts today to ensure your startup is due diligence-ready and poised for growth.