Finding the Right Lawyer for Your Business: Part II

By: Lauren Stahl

Fancy awards, badges, and seals are not indicative of a great lawyer. And awards are not all created equal. Business owners should heed caution when looking at lists of awards on a lawyer’s website. A deeper discussion of these so-called “vanity” or “ego” awards can be found in Part I.

Finding a lawyer for your business does not have to be a daunting task. But where should you look to find a lawyer? What questions should you ask? Consider the following advice when searching for the right lawyer for your business.

Where should you start looking?

A great place to start looking for a lawyer is the American Bar Association (“ABA”). The ABA’s website has a great deal of information not only for professionals but also consumers who have legal questions. The ABA specifically has a “Hire a Lawyer” section. On this page, you can find public-service oriented referral services and other tools, such as bar directories, that can help you find a qualified lawyer.

Beyond the ABA’s website, you can search for a lawyer by city and state via a commercial lawyer referral service, such as FindLaw. Similar services are also listed on the ABA’s website.

what are the minimal skills your lawyer should have?

Depending on the type of business you have, you may need a lawyer with the following set of foundational skills:

Contracts. You will need a lawyer who is familiar with your business practices and can prepare contracts between your business and clients, suppliers, and customers. You will also need a lawyer to help you respond to contracts that other parties will want you to agree to.

Taxes and licenses. If your business is in the startup phase, you will need a lawyer who knows how to register your business for state and federal identification numbers. Beyond that, you will a lawyer who understands the tax implications of various business transactions that your business will engage in.

Business organizations. Depending on the stage of your business, you may need a lawyer to advise you on what type of business entity to form (e.g., corporation vs. limited liability company (LLC)). This lawyer should be able to discuss the advantages and disadvantages of each entity and to prepare any paperwork associated with formation.

Real estate. If you are leasing a commercial space for your business, the lease is likely complex and drafted to benefit the landlord. A lawyer with some real estate experience should have a standard “tenant’s addendum” that contains provisions to benefit your business. These provisions can be added to the standard “print form” lease document.

Intellectual property. If you have a media, design, or other creative business, a lawyer who has experience with registering products and services for federal trademark and copyright protection will certainly be helpful. Typically, these tasks are performed by lawyers who specialize in intellectual property. If your lawyer specializes in small businesses, then she likely has a working relationship with a lawyer who specializes in intellectual property.

whaT questions do you need to ask potential lawyers?

When interviewing potential lawyers for your business, don’t be afraid to ask direct questions. Here are a few examples of questions to ask:

Are you well-connected in the area? No lawyer can know everything about every area of the law. But a lawyer should be able to find solutions to your legal problems and refer you to lawyers who specialize in certain areas if needed. If your business has specialized legal needs, the right lawyer for your business should either be familiar with that area or have a working relationship with someone who is. This will prevent you from having to find a new lawyer every time you encounter a different legal problem.

Do you have other clients in my industry? The right lawyer will be somewhat familiar with the legal environment of your industry. If not, a lawyer should be willing to learn. One thing to consider is whether the lawyer represents one or more of your competitors. While lawyers must abide by principles such as client confidentiality, you do not want to risk an accidental slip of sensitive information to a competitor.

Are you experienced? It is important to ask direct questions about a lawyer’s experience. For example, if you know that you want to form an LLC, you might want to ask questions about her experience forming and handling other LLCs. 

How do you educate your clients? A lawyer should be willing to tell you what the law says and explain how it affects your business. A lawyer should be a teacher and take the time to educate you and your staff about legal matters directly impacting business operations. The right lawyer might also distribute newsletters or legal reports that describe recent. developments in the law that impact your business.

what questions do you need to ask yourself?

After interviewing potential lawyers for your business, you will also need to reflect on the interview and should ask yourself questions when determining if this lawyer is the right one for your business. For example:

Do I like this person? You should be able to communicate openly and freely with your lawyer. Trust your instincts and feelings. If you feel that you cannot trust a certain lawyer, keep looking.

Does this person communicate with me? The right lawyer will not simply tell you what you cannot do but will tell you how to do what it is that you want to do. She will discuss all available options. The right lawyer will tell you what other businesses in your situation normally do.

Is her office conveniently located? While it might be easier to meet with your lawyer remotely, consider whether you would like to meet with your lawyer in person. If so, you likely will need to visit your lawyer often in the first few years of business. Choosing a lawyer relatively close to you or your business might be beneficial to avoid wasting travel time every time you need legal advice.

main takeaway

While there is no “right” way to find an attorney or “right” question to ask, it is possible to find the right lawyer for your business. Many small businesses wait until a problem has already occurred to hire a lawyer. Don’t be one of them.

This post has been reproduced with the author’s permission. It was originally authored on April 2022, and can be found here.


Lauren Stahl, at the time of this post, is a rising 3L at Penn State Dickinson Law. She has a B.S. in Biology from Georgetown University. Formerly a medical researcher at the National Institutes of Health and Penn State College of Medicine, Lauren has interests in the intersection of health law and business law. Lauren currently serves as a Comments Editor of the Dickinson Law Review and is a member of the Health Law Society and Women’s Law Caucus. She is also Professor Prince’s Team Lead and the Lead TA for the Legal Writing program.

Sources:

https://www.forbes.com/sites/basharubin/2014/11/14/small-business-expert-how-do-you-find-and-pick-a-lawyer/?sh=31190c8b138a

https://www.americanbar.org/groups/public_education/resources/public-information/how-do-i-find-a-lawyer-/

https://www.entrepreneur.com/article/58326

Eye On The Law: Delegating Authority As A Small Business Owner

By: Nathaniel Ofori

The art of entrepreneurship and owning a small business usually starts with an idea conceived by a single person or a small group. Thus, many entrepreneurs find themselves handling all business-related tasks at the onset of their venture. To a small business owner, it is a commendable show of faith to allow employees to perform tasks pertaining to the business, but there are legal implications of an employee acting under the control of the business owner that this article will explore.

delegation and its benefits

Delegation is when responsibility is assigned to others in the workplace within prescribed limits. Naturally, some business owners strive to be self-sufficient and may believe they are the only ones capable of performing specific tasks correctly. However, such reasoning can often be detrimental to the business. As a business leader, it is important to delegate authority to focus efforts on high-level specific tasks that will guide and grow the business.

Delegation improves employee engagement, maximizes human resources, and encourages speedy decision-making. Employees are often placed in positions where they can easily take advantage of their employer, but despite these fears, the art of delegation easily sells itself. By extending responsibilities to employees, a business owner raises the worker’s skill levels and distributes the burden, which boosts the company’s long-term success.

llcs and the formation of agency relationships

Often, small businesses are formed as a Limited Liability Company (“LLC”). LLCs have grown in popularity because of their tax advantages, liability protection, and ease of formation. Similar to a corporation, an LLC is a separate legal person from its owners. An LLC is a distinct legal entity that may sue or be sued on its own. In the legal sense, an employee hired to work on an owner’s behalf in such a business is an “agent,” and the owner, the principal.

employee’s obligations to the business owner

As an agent, the employee owes the employer a duty of loyalty, obedience, and care in all matters relating to the business relationship. These duties serve as a check on an employee’s role in the business relationship. Employees are generally required to act within the scope of the authority granted them by their employers and to abide by all contractual obligations. The employee is obligated to place the owner’s interest above theirs’ in all matters concerning the business and may not exploit the business by using the owner’s property or confidential information for personal gain. Employees are also not allowed to compete with the principal’s business while under employment.

The agent or employee is expected to uphold the duty of care that requires the diligence and competence of a reasonable agent in similar circumstances. In the event that an employee has special skills, they may even be held to a higher standard of care, that is, be required to perform at a level comparable to a professional with similar skills.

legal concerns with delegation of authority

Given this ‘special’ principal-agent relationship, a business may be liable for contracts entered on by the agent on behalf of the owner if made in good faith. Even though an employee will be held liable to a third party harmed by his own tortious conduct, the employer may be liable directly or vicariously in some states. An employer will be vicariously liable under the doctrine of respondeat superior for the wrongful actions of an employee if the act occurs within the scope of the employment. This theory is a means of attributing liability to an employer for the actions of his employees while “on the job”. The underlying premise of respondeat superior is that the cost of torts committed in the conduct of a business should be anticipated as part of the costs of doing business and that the “master” should be able to answer for the “servant”. However, in several states, vicarious liability will not extend to the intentional or criminal conduct of the employee. Furthermore, in cases of employer-employee liability, damages will be divisible among both parties in court in view of the facts. (It must be noted though, that respondeat superior does not apply to independent contractors.) 

key tips

To encourage effective delegation of authority in a small business, some key tips to consider would be to create an employee handbook first. Though simple, this can improve accountability immensely. A few things you should include are employee policies and other rules of procedure in performing tasks. These provisions should define desired outcomes and authority levels. Managers should also ensure that employees have the tools they need to complete tasks. They should be able to evaluate performances and monitor progress by setting up personnel files. Employees may be encouraged to accept more responsibility and learn more skills when provided constructive feedback.

It is additionally important to set up employee benefits and post required federal and state labor law notices. This improves transparency and can boost morale. Workplace safety measures should also be adopted to avoid the propensity for accidents. This could be in the form of providing training for different scenarios, providing a hazard-free workplace, and keeping detailed safety records. Establishing some form of punitive action for workplace indiscipline could also discourage employees who abuse their delegated power. Ideally, the purchase of business liability insurance could serve as a safety net for small business owners when all other options fail.

Admittedly, this is a non-exhaustive list, but it does offer some considerations to keep in mind when delegating authority in a business.

This post has been reproduced with the author’s permission. It was originally authored on February 10th, 2022, and can be found here.


Nathaniel Ofori, at the time of this post, is a third-year law student at Penn State Dickinson Law. Originally from Accra, Ghana, Nathaniel graduated from Rutgers University where he double-majored in Political Science and Criminal Justice. He currently interns at the Superior Court of Pennsylvania and aspires to specialize in white-collar crime/criminal defense after law school.

Sources 

https://www.law.cornell.edu/wex/respondeat_superior

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2900989/

https://www.quimbee.com/keyterms/limited-liability-company

https://www.businessnewsdaily.com/8643-leader-delegation.html

https://hbr.org/2019/08/8-ways-leaders-delegate-successfully

https://online.hbs.edu/blog/post/how-to-delegate-effectively