As a startup business owner, you’ll be able to handle many chores yourself. You can easily master accounting processes, billing, marketing and sales with a just little training.
But you can’t handle legal issues – unless you’re an attorney. And sooner or later, every small business encounters the need for a lawyer.
So prepare yourself. Here are five things you need to know about hiring an attorney and getting savvy legal counsel.
1. Why you might need an attorney
A general business attorney can help you get a smooth start in business. She can advise you about choosing the best legal and tax structure for your new business. He can help you identify licenses and permits you might need to operate your company legally. Attorneys can also help you put the right paperwork in place so that your business is legal in the eyes of state and federal governments.
As your small business grows, a savvy attorney can provide counsel on operation and management issues. Attorneys can develop contracts between your business and employees or suppliers. They can help resolve disputes between you and your contractors.
2. Why you might need a specialist
If your small business faces specific legal issues, hire an attorney with expertise.
Specialists frequently have deeper knowledge and experience in their areas of expertise than general business attorneys.
For instance, an attorney who specializes in intellectual property may provide you with up-to-date counsel if you face a copyright dispute. Collections attorneys usually have the technology and staff on hand to chase down deadbeat clients. Estate attorneys are experienced in helping owners take wealth out of their business for retirement.
You can hire attorneys that specialize in all manner of business issues, such as:
Taxes
Workers’ compensation
Employment law
Partnership agreements
Litigation
Contracts
Real estate transactions
Although specialized attorneys sometimes charge more than general attorneys, you could save money in the long run. General attorneys might need to spend hours researching a specific issue – hours that are billed to you. Specialists are usually up to speed in their areas of expertise.
3. Get references
Don’t pick an attorney out of the phone book. Talk to business associates, members of your trade or professional organization and your local chamber of commerce to get recommendations. Ask your tax professional for references.
For general business matters, try to find an attorney with broad experience in small-business laws and regulations. For specific business issues, look for attorneys with specialized expertise.
4. Narrow your choices
Narrow your list down to four or five attorneys. Call each of them and ask to set up an initial meeting. Tell them why you’re searching for an attorney and who referred you to them. You should not be charged for this initial meeting.
Ask the attorneys for the names of several of their clients, preferably other small-business owners. A reputable attorney should be willing to give you the names and contact information for references. If an attorney says he won’t give references because of confidentiality, strike his name off your list of potential candidates.
Before you meet with the attorneys on your list, call each of the references. Find out what type of work the attorney performed for the clients. Get answers to these questions:
Were the clients satisfied with the quality of the work?
Were the fees reasonable?
Did the attorney return phone calls promptly?
Would the client hire this attorney again?
5. Meet with the attorneys
During your initial meeting, be prepared to outline your legal needs. Also be prepared to evaluate these areas of the working relationship:
Fees. Ask about fixed fees for specific projects and hourly charges. The attorney should clearly explain the fee structure, including any incidental expenses, such as photocopies and courier services.
Desire to take on your work. Be straightforward. Ask if the attorney is interested in working with a business of your size. Ask if the attorney has the time and willingness to work on the types of legal projects you expect to encounter.
Gut check. Do you feel comfortable talking to the attorney? Is she attentive or distracted? Enthusiastic or bored? Does he show interest in your business and legal needs?
(Posted November 2004)
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