When do we need a lawyer?

I generally agree with the posted answer, and would add the following: I've worked with a few start-ups, and the most obvious issues you'd be well advised consulting with an attorney is the creation of your basic building block of commercial agreements/forms/ the privacy policy and the terms of service and certainly on the HR/employment issues so that these don't blow up in your face. In addition, depending on the space you're in (let's say - consumer), you need to understand the privacy and data security ramifications of any marketing you're doing to your targeted end user group in a way that complies with the FCC and local state regulations. Understandably, hiring an outside counsel with a $500-800/hourly rate may be prohibitive to early-stage start-ups for work that does not require specialized expertise. You may want to consider hiring a consulting attorney who has experience of working in-house and can deliver generalist services in an efficient manner and on a fixed fee arrangement.