By: Greg Archibald
Entrepreneurs need to run their business while also navigating an endless maze of laws. Finding an attorney for a small business, whether at the start-up stage or during the business’s life, can be a daunting task. Along with an accountant, an attorney is one of the most important professionals a small business needs during a number of key moments in the business’s early life. A good attorney can assist entrepreneurs in almost all aspects of their businesses, including contract drafting, regulatory compliance (tax, intellectual property, healthcare, etc.), employee handbooks, and many concerns that are unique to individual businesses. This post will seek to answer common questions entrepreneurs ask regarding how to locate legal assistance for their small businesses.
When should I consult with an attorney?
The answer to this question could be simple: the sooner, the better. A good attorney will seek to preemptively solve problems before they actually occur. This is accomplished in multiple ways, including drafting start-up documents that are tailored for each individual business or updating an employee handbook to be in compliance with ever-changing employment laws. Obtaining legal assistance in the early stages of a business is one of the best ways to set up an entrepreneur for success. In contrast, legal issues are much more difficult, time-consuming, and expensive to resolve after the problem occurs.
That being said, if you are having a legal issue, finding an attorney who is specialized in the problem area is a high priority. If you are starting up your company, try to find a “start-up” or “small business” attorney. If you received a letter from the IRS or other taxing authority, you perhaps should seek a tax attorney. Another example: if you have intellectual property, you will want to seek an attorney’s advice to ensure that you don’t give up rights or violate the rights of others.
If you are just starting out, it is possible that you may be able to find free assistance for the creation of your business. Contacting your local Economic Development offices is a good start in finding this information. Also, some law schools have clinics and some local incubators have attorneys who assist entrepreneurs.
How do I find the right attorney?
There is no simple answer to this question, however, good legal assistance can be located by a variety of methods. First, and likely most obvious, is the internet. Searching “[type of law] lawyer near me” will bring up a broad array of local attorneys. From this, an entrepreneur has the opportunity to review the attorney or firm’s website, and possibly even locate online reviews of the individual attorney (but a word to the wise, reviews cannot always be considered reliable).
Second, word-of-mouth is an often reliable method to locate attorneys. This method is especially useful if the entrepreneur is able to contact other businesses similar to their own and request a recommendation for legal assistance. Accountants can also be a source of referral. However, it is important to remember that just because a particular attorney is popular in a given area does not necessarily mean he or she is the best fit for an individual business.
It’s a good idea to shop for an attorney by requesting face-to-face meetings with individual attorneys. This way you can see if you feel the attorney is a good fit with your business culture. Many law firms and sole practitioners offer free consultations for this very purpose. An in-person meeting allows the entrepreneur to discuss their unique needs. A good working relationship with a business’s attorney is crucial, and though signing an attorney’s retainer does not mean that the relationship lasts forever, the business will likely function much more efficiently if the entrepreneur and attorney get along.
How much will an attorney cost?
Unfortunately, it is very difficult to answer this question, as each attorney or firm likely has their own unique fee structures. If cost is a concern, as it almost always is, this is an important discussion to have with an attorney during a consultation. Many may be willing to adjust their fee schedules to meet an individual client’s needs. However, it is important to remember that legal assistance is significantly cheaper before a legal issue arises. As the saying goes, an ounce of prevention is worth a pound of cure.
What questions should I ask an attorney during a consultation?
One question to ask is if the attorney represents other businesses in your industry. Familiarity with your industry can be very helpful. Next, you will want to determine the attorney’s experience level in the particular area of law the business you are seeking assistance for. For example, if an attorney is retained by numerous LLC clients, is a managing member of two different LLCs, and works on liquidation dispute cases throughout the year, it is a safe bet that this attorney has the knowledge to draft an operating agreement for a new LLC.
Next, it is perfectly appropriate to discuss the attorney’s fees before you have signed a retainer. If a business cannot afford an attorney’s normal hourly rates, the attorney may be willing to create a fee structure specifically designed for the business. Ask about flat rates so that you can budget for it. Also, ask how communications will be billed.
On the topic of “communication,” ask how the attorney can be contacted, and how often they intend to provide the business with updates. Communication is a critical part of any business relationship, and legal relationships are no different. An attorney should be willing to remain in reasonably frequent contact with their clients, though the frequency of this contact obviously depends on both the client’s preferences and the type of legal matter.
Though the above is not an exclusive list of answers, they will hopefully prove useful to small businesses struggling to find legal assistance. It may be an overwhelming task, but locating a skilled attorney is one of the most important steps required to set an entrepreneur up for success.
This post was authored on January 12, 2020.
Greg Archibald, at the time of this post, is a third-year law student at Penn State Dickinson Law. He is from Central Pennsylvania and is interested in corporate litigation. Greg is the President of the Business Law Society and is currently a Comments Editor of the Dickinson Law Review.
Thank you so much for pointing out that a business lawyer can help with protecting intellectual property and making sure that all the legal paperwork is done to have a real business. About a week ago, I was talking with my unc;e. He mentioned that he has created some kind of new scooter that he thinks will start an amazing business. I want him to be successful and have a good shot at this. I wonder if he should look into business law services that could help him.
Hi! We have many articles on the blog that could help guide your uncle. I would search for confidentiality agreements, licensing your product, intellectual property, and so on. Most attorneys offer a free consult so perhaps it would be a good idea for him to talk to someone and it won’t cost anything!