Hiring a good lawyer is crucial to any successful business. Here’s everything you need to know about finding, interviewing, and hiring the very best.
Why You Need an Attorney
There are two professionals every business will need early on: an accountant and a lawyer. The reasons for hiring an accountant are pretty obvious—you need someone to help you set up your “chart of accounts,” review your numbers periodically, and prepare all of your necessary federal, state, and local tax returns. The reason for hiring a business attorney may not, however, be so apparent. A good business attorney will provide vital assistance in almost every aspect of your business, from basic zoning compliance and copyright and trademark advice to formal business incorporation and lawsuits and liability.
General Rules About Dealing with Lawyers
- If you are being sued, it’s too late. Most small businesses put off hiring a lawyer until the sheriff is standing at the door serving them with a summons. Bad mistake. The time to hook up with a good business lawyer is before you are sued. Once you have been served with a summons and complaint, it’s too late—the problem has already occurred, and it’s just a question of how much you will have to pay (in court costs, attorneys’ fees, settlements, and other expenses) to get the problem resolved.
- Big firm or small firm? Generally speaking, the larger the law firm, the greater the overhead, and therefore, the higher the hourly rates you will be expected to pay. Still, larger firms have a number of advantages over smaller ones. Over the past 20 years, lawyers have become incredibly specialized. If you use a solo practitioner or small firm as your lawyer(s), it’s likely that they will not have all the skills you may need to grow your business. Sooner or later, these “generalists” will have to refer you out to specialists, and you will find yourself dealing with multiple attorneys.
While larger firms are more expensive, they have two significant advantages:
sqlCopy code- They usually have all the legal skills you need "under one roof."
- They have a lot of clout in the local, regional, and national legal community.
Types of Attorneys
Like doctors, lawyers are becoming increasingly specialized. At the very least, you will need the following sets of skills. The more skills reside in the same human being, the better!
- Contracts. You will need a lawyer who can understand your business quickly; prepare the standard form contracts you will need with customers, clients, and suppliers; and help you respond to contracts that other people will want you to sign.
- Business organizations. You will need a lawyer who can help you decide whether a corporation or limited liability company (LLC) is the better way to organize your business and prepare the necessary paperwork.
- Real estate. Leases of commercial space—such as offices and retail stores—are highly complex and are always drafted to benefit the landlord. Your attorney should have a standard “tenant’s addendum,” containing provisions that benefit you, that can be added to the printed form lease document.
- Taxes and licenses. Although your accountant will prepare and file your business tax returns each year, your lawyer should know how to register your business for federal and state tax identification numbers and understand the tax consequences of the more basic business transactions in which your business will engage.
- Intellectual property. If you are in a media, design, or other creative-type business, it is certainly a “plus” if your lawyer can help you register your products and services for federal trademark and copyright protection. Generally, though, these tasks are performed by specialists who do nothing but “intellectual property” legal work. If your lawyer says they “specialize in small businesses,” they should have a close working relationship with one or more intellectual property specialists.
Conclusion
Hiring a lawyer is a crucial step for any business. By understanding the types of legal expertise you need and the advantages of different firm sizes, you can make an informed decision that will protect and support your business as it grows.