For small business owners, having a reliable legal partner to offer advice and manage their legal obligations can be a game-changer. However, finding the right attorney to support you in your business endeavors takes time.
Here’s everything you need to know to find a suitable small business attorney for your needs.
What is a small business attorney?
A small business attorney is a legal professional who exclusively represents small businesses and their owners. Otherwise referred to as corporate or commercial lawyers, these professionals can guide small business owners through any legal processes they may encounter while establishing and maintaining their businesses.
Here are a few examples of small business attorneys:
General business attorney
This type of attorney provides general legal business advice, usually encompassing a wide range of topics. This lawyer is best suited for businesses that don’t need specialized legal advice or representation.
Employment and labor attorney
If your small business has employees or is planning to hire them, an employment and labor lawyer can help you follow local and state labor laws. They can also protect your business through wrongful terminations and workplace discrimination lawsuits.
[Read more: 10 Legal Requirements for Hiring Employees]
Merger and acquisition attorney
Before merging with another business or arranging an acquisition, it’s important you’re accurately represented by a merger and acquisition lawyer. Business owners may not understand the entirety of their obligations, leaving room for the other party to negotiate a deal in their favor. A small business attorney can help you through the transaction to ensure fair negotiation.
Tax attorney
As a small business, you’re required to pay state and federal taxes. These tax requirements can get confusing and lead to mistakes. A tax lawyer can help you remedy these mistakes if the IRS takes legal action.
Contract attorney
If you’re making a business deal that requires a written agreement, a contract lawyer is beneficial to secure a legitimate contract that doesn’t lock your business into any unnecessary obligations.
Intellectual property attorney
This lawyer will help protect any trademarks, copyrights, or patents your small business holds. They can also help you avoid costly legal issues and lawsuits related to IP infringement by ensuring compliance with IP laws.
[Read more: Intellectual Property: What Is It and How Do I Protect It?]
What are the benefits of having a small business attorney?
Having a go-to attorney can not only help you navigate the legal aspects of your business but also ensure your protection throughout the process.
“A small business [must have] the right representation to ensure that the person who owns the business is legally protected, both personally and professionally,” explained Jennifer Schenker, an Attorney at Tarter Krinsky & Drogin. “In the event that a business owner guarantees anything financially, as a personal guarantee on behalf of the business, then that person would be deemed personally liable.”
In the early stages of your business, a small business attorney can ensure it’s structured properly and legally compliant. They can also advise on everyday business matters, tax issues, and startup operations.
As your business grows, a small business attorney helps protect your assets, including cash and property. They ensure that your employment agreements are solid and fair and can create contracts for employees, clients, and vendors. If disputes arise, they can also handle contract enforcement.
Should your business need representation, a small business attorney can help you navigate the legal process. They offer support during bankruptcy too, helping you overcome financial challenges by determining the best course of action.
Cost of hiring a small business attorney
The cost of hiring a small business attorney will vary depending on multiple factors, including your business’s needs and budget, the attorney’s expertise, and the firm’s reputation. Case complexity and regional rates can also impact the total cost. Working with a smaller firm will likely come at a lower cost; however, larger firms offer more resources that can lead to faster results and more expert attention on your case.
Typically, you can expect to pay between $150 and $325 an hour for a small business attorney. This kind of pay structure is common for more complex cases; for more straightforward cases, some attorneys prefer to charge a flat rate.
You should retain a small business lawyer to help with more serious legal issues.
Where to look for a small business attorney
One of the best ways to retain a lawyer suitable for your small business is through network referrals. Talk to other small business owners or colleagues within your network and ask them to refer you to a lawyer they may have used in the past or are currently working with. Be sure to ask your connection when and how they worked with this lawyer to determine if they’re the right fit for your business.
Another way to look for a small business lawyer is through online resources including social media platforms such as LinkedIn. While it may seem simple to just read the reviews on these sites, be wary, as they can house fake sources. Lastly, online services and directories can connect you to a local lawyer in your area based on your legal needs if your network doesn’t offer suggestions and you don’t trust online reviews.
What to consider when choosing a small business attorney
When choosing a small business lawyer, ask yourself why you need a lawyer’s expertise. Maybe you need an employment and labor attorney after increasing your employee count or you are entering into a business partnership and require a contract lawyer.
When you’ve determined your business’s needs, there are a few questions to consider in your search:
- How many years have they been in practice?
- Who will handle your case?
- Where are they located? If they’re far away, are they willing to travel?
- How often do they handle the issues you’re hiring them to deal with?
- What issues do they specialize in?
- Can I talk to existing clients with similar needs or business structure as me?
- What size is the law firm and can it scale with me? Conversely, if it’s already large, does it have enough time to help me with my issues?
- Are they willing to go to trial, or will they try and settle?
- What are their fees?
- Do they have financial arrangements that suit my business’s finances?
- Am I required to pay a retainer?
Schenker also recommends interviewing any potential attorneys to ensure you are comfortable with them.
“Just because an attorney may be good, does not mean that they are the right attorney for you,” she said. “[You need] to hire an attorney that [you] are comfortable with and can trust.”
While some attorneys offer free consultations for potential clients, this practice is becoming less common. If you’re hoping to vet a professional without incurring a fee, clarify this upfront. You should also check online reviews and gather recommendations from other small business owners.
During the vetting process — and before signing any contracts — ask your potential attorney any questions you have to ensure you have all the information you need to make an informed decision.
When you need a small business attorney
While legal representation and advice are crucial in certain circumstances, there are some instances where you may not need a small business attorney, including while:
- Writing a business plan.
- Submitting IRS forms.
- Setting up a business (registering your domain name, hiring employees, filing permits, etc.).
- Updating a current partnership agreement.
On the other hand, you should retain a small business lawyer to help with more serious legal issues, including:
- Environmental issues that involve your business.
- When selling your business or acquiring another business.
- When local, state, or federal institutions file a complaint against your business.
[Read more: How to Prepare Your Small Business for Acquisition]
How to make the most of your small business attorney relationship
Once you’ve found a small business attorney who fits your needs, here’s how to maintain that relationship:
- Communicate openly. In a client-attorney relationship, keeping secrets benefits no one. Communicate regularly with your attorney and answer their correspondences promptly. Discuss what each party needs out of the relationship, and keep them informed of any major changes within your business.
- Trust their advice. When your attorney offers you advice, take it seriously — attorneys often have more experience than their clients and have learned from the mistakes of others in similar situations. Schenker recommends strategizing with your attorney and asking questions to gain a complete understanding of any legal matters.
- Pay them properly. Late payments can negatively impact your reputation and sour your attorney relationship. Instead of neglecting payments, reach out and discuss your financial situation with your attorney to explore possible accommodations.
Lauren Wingo also contributed to this article.
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