An Interview With Chad Silverstein
NEGLECTING TO SEEK LEGAL ADVICE ABOUT THE FORMATION OF A BUSINESS ENTITY. During the crucial business formation phase, some entrepreneurs skip consulting legal counsel, assuming they understand enough to choose an entity such as a limited liability corporation (LLC) or corporation. However, this approach often overlooks the nuanced impact of tax treatment, liability protection, management structure, and alignment with long-term goals. For instance, while an LLC may seem appealing for its simplicity, a corporation could offer better tax advantages or scalability for future growth. Without professional guidance, businesses may select a structure that hinders operational efficiency, introduces compliance challenges, or fails to align with strategic objectives. Such decisions can result in poorly drafted operating agreements, unmet regulatory obligations, and costly legal and financial pitfalls.
In today’s fast-paced business world, the complexity of legal matters can often be overlooked, leading to significant repercussions for businesses of all sizes. From startup ventures to established corporations, the absence of legal guidance can result in critical errors that affect growth, operations, and sustainability. These mistakes range from issues with contracts and intellectual property to compliance and employment law, each carrying the potential for financial loss and reputational damage. I had the pleasure of interviewing Nirupa Netram.
Nirupa Netram is an attorney with over 26 years of experience. She is licensed to practice law in Florida and is admitted to practice before the United States District Court, Middle District of Florida, and the United States Supreme Court. Through her management consulting company, Lotus Solutions LLC, she offers consulting, customized training and workshops, coaching, and keynote speeches on leadership development, communication, workplace conduct, professionalism, and more.
Thank you for joining us. To start, could you share your “origin story” with our readers? How did you begin your career? What challenges did you face in the early days? How did you overcome them?
After graduating from law school, I was a Senior Trial Court Staff Attorney, a role I held for over 12 years. I was responsible for conducting in-depth research and writing judicial opinions and orders in various cases, including intricate matters like death penalty cases. I also managed operations, attorneys, and interns.
The early days of my career presented unique challenges, particularly in gaining recognition for the complexity and impact of my work from attorneys who did not understand my job. One vivid memory involved an attorney asking me, “What do you want to be when you grow up?” Despite the dismissive tone of his comment, I chose not to engage. Ironically, earlier that same day, I had been drafting an order to correct an error in his calculations regarding his client’s entitlement to credit for time served in jail. Rather than allowing such remarks to undermine my confidence, I remained steadfast in my commitment to excellence. The judges I worked with deeply appreciated the quality and rigor of my work. Over time, I built an outstanding reputation among judges and peers, earning compliments on my work and even receiving reference letters from judges who did not write such letters.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
The book that has profoundly influenced me is Nice Girls DO Get The Sale: Relationship Building That Gets Results, an enduring classic by international best-selling and Evergreen author Elinor Stutz. In her book, Elinor courageously shares her journey as a woman in sales, highlighting the obstacles she overcame with intelligence, wit, and empathy. Her approach helped her achieve extraordinary success in sales and paved the way for countless women to pursue their dream careers.
I understand firsthand the unique challenges women may encounter in their careers. Elinor’s story resonates deeply with me. It reminds me to remain hopeful, embrace positivity, and persevere in adversity. Her inspiring insights have been a guiding light, reminding me (and countless others) that empathy and resilience lead to success.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
Like many women I have spoken with, I used to take job rejections to heart, often feeling frustrated and defeated. It was especially disheartening when I received glowing feedback after interviews, even in writing, which made the rejections sting even more. Despite being well-qualified, sometimes over-qualified, with stellar references from every employer, the outcome was disappointing.
Then, my dear friend Elinor Stutz shared wisdom that transformed my outlook: “No simply means don’t waste time, but move on to a better opportunity.” Her words were a lightbulb moment, helping me reframe how I viewed rejection. From that point on, I stopped internalizing missed opportunities as personal failures. Instead, I began to see them as redirections to something greater. Whenever I face rejection, I tell myself, “It’s their loss, not mine.” This shift in mindset became a turning point for me. It allowed me to embrace resiliency and focus my energy on pursuing better opportunities that truly value my unique skills and experience. Elinor’s mantra became a guiding principle.
How have you used your success to make the world a better place?
We are all here to uplift and support one another and should strive to do so whenever possible. One of the ways I make a difference is by mentoring underrepresented, underprivileged students, helping them navigate challenges and achieve their dreams, even those that seem unachievable. One mentee who holds a special place in my heart was a high school student with a passion for learning and an ambitious goal: an Ivy League education that seemed financially out of reach.
During our first meeting, my mentee candidly expressed no interest in becoming a lawyer, which I assured her was fine. Despite her reservations, I encouraged her to apply to her dream school, Princeton University. Her determination paid off when she earned a full scholarship to Princeton. Along her journey, she discovered the incredible opportunities a law degree could offer, both within and beyond the field of law. Ultimately, she chose law school and is now a successful attorney. Witnessing her success has been deeply rewarding.
Ok, let’s now turn to the central part of our interview. What is the most common legal mistake you see businesses make due to the lack of proper legal counsel, and what are its potential consequences?
A common mistake is failing to consult an attorney before terminating employees, especially those over age 40 or employees who have been with the company for a long time. Federal or state law may prohibit terminations based on protected characteristics. Neglecting these and other legal nuances can lead to lawsuits, costly settlements, reputational harm, and possible audits or investigations by regulatory agencies.
By consulting an attorney, businesses can develop compliant policies, document performance issues thoroughly, and ensure terminations align with relevant laws. This proactive approach reduces legal risks while promoting fairness, transparency, and professionalism in employment practices.
Can you share an example where early legal intervention could have significantly altered the outcome of a business dispute or challenge?
The Apple vs. Samsung case, in which Apple sued Samsung for allegedly copying the iPhone, claiming patent infringement, is an example of how early legal intervention could significantly alter the outcome of a business dispute. The lawsuit led to a lengthy legal battle, costing billions. Apple initially won a $1 billion verdict, but the case dragged on for years with appeals and adjustments to the damages awarded. The parties eventually settled.
Had Samsung sought early legal intervention, such as conducting a thorough patent review before launching its products or negotiating a licensing agreement with Apple, the parties might have resolved the dispute more efficiently and sooner. This could have saved Samsung from reputational damage and financial losses while allowing Apple and Samsung to focus more on innovation, not litigation. This case highlights the importance of proactive legal strategies in business. Early legal intervention, such as intellectual property audits, contract negotiations, and compliance checks, can prevent costly disputes and protect a company’s long-term interests.
How do changes in digital technology and online business practices complicate legal issues for businesses without dedicated legal advice?
Digital technology and online business practices are rapidly evolving, bringing about legal challenges that businesses without dedicated legal counsel may struggle to manage. Innovations like artificial intelligence (AI), blockchain, and big data raise many potential legal concerns. Without legal guidance, businesses risk unintentionally infringing on existing rights or failing to protect their creations.
AI-generated content, for example, poses complex questions about ownership and attribution, adding another layer of uncertainty. Ethical considerations, such as ensuring AI tools do not perpetuate bias, further complicate the digital landscape, exposing businesses to potential liabilities. Businesses benefit from consulting legal counsel early to navigate risks such as ransomware attacks, data breaches, etc. With tailored legal advice, they can establish compliance frameworks, safeguard intellectual property, and adopt ethical business practices.
In your experience, how does the absence of legal counsel impact a business’s approach to contracts and negotiations, and what advice would you give to mitigate these risks?
Without legal counsel, businesses often approach contracts and negotiations with heightened uncertainty and vulnerability. Many lack the specialized knowledge to identify potential risks, ensure compliance with applicable laws, and structure agreements to safeguard their interests. This can lead to unfavorable terms, unenforceable clauses, and increased exposure to litigation or financial losses. Additionally, businesses may struggle with complex contract language, unknowingly committing to obligations that exceed their capacity, or overlooking critical protections that could prevent disputes. The absence of legal guidance can also weaken a company’s negotiating position, as counterparties with experienced legal teams may exploit ambiguities or technical loopholes to gain an advantage.
To mitigate these risks, businesses should prioritize contract education and risk assessment strategies. Working with an attorney can provide insight into common pitfalls and good practices. Leveraging contract templates vetted by reputable attorneys or using contract management software with built-in compliance checks may help reduce errors. Additionally, business leaders should foster a culture of due diligence, where all agreements undergo rigorous review and negotiation before being finalized. Establishing clear internal guidelines for contract approval and maintaining open communication with stakeholders can strengthen protections against potential liabilities.
What legal pitfalls do new businesses often overlook during their initial setup and growth phases, and how can they proactively address these issues?
New businesses sometimes overlook the importance of human resources (HR). This oversight may seem minor in the early stages of a business. However, lacking a dedicated HR person, policies, and procedures can lead to significant legal and operational challenges as the company grows and scales. Without proper HR management, businesses may inadvertently violate employment laws governing discrimination, wage and hour compliance, employee classification, etc. These missteps can result in penalties, lawsuits, or reputational damage. Additionally, the absence of clear HR policies and procedures may lead to conflicts or misunderstandings that negatively impact employee morale and productivity.
Businesses should consider implementing HR practices early on, even if a full-time HR professional may not be feasible. Payroll companies often provide HR services such as drafting employee handbooks, workplace training, etc. Alternatively, companies may consult legal counsel to draft employee handbooks, contracts, and workplace policies and procedures that comply with applicable laws. As the business grows, owners should evaluate when to hire an HR professional to ensure ongoing compliance and support. By integrating HR planning into the growth strategy, companies can mitigate risks and attract and retain top talent.
Could you list and briefly explain “Top 5 Mistakes Businesses Make Without Legal Counsel” based on your experiences and insights?
1. NEGLECTING TO SEEK LEGAL ADVICE ABOUT THE FORMATION OF A BUSINESS ENTITY. During the crucial business formation phase, some entrepreneurs skip consulting legal counsel, assuming they understand enough to choose an entity such as a limited liability corporation (LLC) or corporation. However, this approach often overlooks the nuanced impact of tax treatment, liability protection, management structure, and alignment with long-term goals. For instance, while an LLC may seem appealing for its simplicity, a corporation could offer better tax advantages or scalability for future growth. Without professional guidance, businesses may select a structure that hinders operational efficiency, introduces compliance challenges, or fails to align with strategic objectives. Such decisions can result in poorly drafted operating agreements, unmet regulatory obligations, and costly legal and financial pitfalls.
2. FAILING TO EXECUTE A PROPER WRITTEN CONTRACT. Relying on verbal agreements exposes businesses to disputes and misunderstandings. For example, a company hired a contractor to redo their driveway without a written contract. The completed driveway, made of artificial grass and concrete, was uneven, hazardous for tripping, and posed risks to low-clearance vehicles. Without documented terms specifying quality standards, timelines, remedies for defects, and other important terms and conditions, the business owner struggled to hold the contractor accountable for corrections. The parties should have hired an attorney to draft a written contract to address quality expectations, penalties for noncompliance, dispute resolution methods, and more.
3. HIRING THE WRONG ATTORNEY. When businesses face legal challenges, some commonly turn to their trusted attorney, such as a family friend or a relative. While this may feel reassuring, it can be a costly mistake if that attorney lacks expertise in the specific area of law involved in the dispute. For instance, imagine a business embroiled in a significant monetary dispute with a commercial contractor over faulty work. Hiring an attorney with construction law expertise (ideally one board-certified in construction law) is critical. Such an attorney would understand the complexities of construction law disputes, building codes, and liability, allowing them to navigate the legal terrain effectively for the client.
4. NEGLECTING TO PROTECT INTELLECTUAL PROPERTY. Businesses might neglect securing trademarks, patents, copyrights, or trade secrets. For instance, a startup with a revolutionary app could lose its competitive edge if another company patents a similar concept first. This oversight may lead to costly litigation or prevent the business from using its original ideas. To avoid such risks, an attorney can help navigate the complexities of registering intellectual property and enforcing it when necessary. Skipping this essential step could jeopardize years of hard work.
5. FAILING TO CONSULT COUNSEL RELATED TO DIVERSITY, EQUITY, OR INCLUSION (DEI) INTIATIVES, POLICIES, PRACTICES, OR PROGRAMS. As DEI evolves, businesses implementing related policies, practices, or programs sometimes overlook the legal complexities. Companies risk exposure to complaints, discrimination claims, or government inquiries without an attorney reviewing DEI efforts. Legal guidance is invaluable, especially as some companies rebrand their DEI efforts. Having an attorney review these efforts ensures they align with employment laws, address potential liabilities, and safeguard the company. Consulting counsel allows the company to reduce legal vulnerabilities while fostering a healthy, positive workplace for all employees.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
The movement I would inspire would be a global call to action for peace, understanding, and compassion, which are foundational pillars of a sustainable and thriving world. It would transcend borders, cultures, and ideologies, uniting people under the belief that empathy is our greatest strength. This movement would foster open dialogue instead of division, kindness instead of judgment, and cooperation instead of conflict. By cultivating hope and recognizing our shared humanity, we can ignite a ripple effect of change, empowering individuals to build bridges instead of barriers.
As we wrap up, how can our readers follow your work?
I welcome readers to follow my work on LinkedIn (nirupanetram) at https://www.linkedin.com/in/nirupanetram, LinkedIn (lotussolutionsllc) at https://www.linkedin.com/company/lotussolutionsllc, TikTok (@lotussllc) at https://www.tiktok.com/@lotussllc, and X (@LotusSLLC) at https://x.com/LotusSLLC.
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Chad Silverstein is a seasoned entrepreneur with 25+ years of experience as a Founder and CEO. While attending Ohio State University, he launched his first company, Choice Recovery, Inc., a nationally recognized healthcare collection agency — twice ranked the #1 workplace in Ohio. In 2013, he founded [re]start, helping thousands of people find meaningful career opportunities. After selling both companies, Chad shifted his focus to his true passion — leadership. Today, he coaches founders and CEOs at Built to Lead, advises Authority Magazine’s Thought Leader Incubator.
Nirupa Netram Of Lotus Solutions LLC On The Top 5 Mistakes Businesses Make Without Legal Counsel was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.