You normally think of those who have someone like James Hoffman’s attorney on retainer as big-time moguls with lots of irons in the fire. The cost of having your business attorney is an unnecessary expense. However, there are several reasons why it is smart for even a small business owner to keep a lawyer on-call.
Why You Need a Full-Time Lawyer
You may not need a lawyer on your payroll when you are just starting, but it is a good investment once you have established your business. There might be plenty of times when you will regret not having an attorney who knows you and your company and whom you can turn to for advice or to protect your interests.
Having your lawyer will save time when you need emergency representation to handle an unexpected legal challenge. The more you grow, the more you are at risk from a number of potential liabilities. Disgruntled employees, unhappy customers, takeover attempts from other companies, and even scammers prey on companies every day. Think of a retainer as an insurance policy that protects you from risk.
There are also non-litigation or liability legal issues that your attorney can handle. Businesses that are experiencing growth may have to alter their corporate structure, want to merge with another company, acquire intellectual properties, or reassess their tax obligations.
How a Retainer Works
There are two ways to handle retainers. First, a pre-specified fee is put into a special account when you first engage an attorney. As your case progresses, they draw money from that amount. If it is depleted, you deposit more based on an estimate of how much it will take to dispose of your case.
Other retainers are used by people who need multiple legal services, like contracts, regularly. These retainers are done on a fee basis, where you continuously keep an account at a certain level for as long as you need to keep that lawyer on retainer.
Your attorney may be your most important business partner. When you need a full-time advocate who’s always got your back, look for a business lawyer you can trust.
Advantages of Having a Business Lawyer on Retainer
First, let us see why companies hire a lawyer on retainer. Here is what you get:
Immediate Access to Expertise: Legal issues can strike anytime. Having a lawyer on retainer gives you much-needed expert advice when you need it most without the extra time needed to find help in an emergency.
Proactive Risk Management: With a retained attorney, he can find any potential legal problem that may become a serious issue and help save time, money, and stress.
Familiarity with Your Business: A lawyer on retainer who works regularly for you understands your company and its culture, thereby knowing your needs. His thorough knowledge translates to quicker and more effective solutions.
Situations That Call for a Lawyer on Retainer
You are Growing Rapidly: Increased risks and complexities normally accompany business growth. Expansion may be made by negotiating major contracts, purchasing new property, or hiring a large number of new employees. Hiring a lawyer on retainer can protect your interests in all these activities.
You Are Regularly Entering Into or Drafting Contracts: It is very important to have contracts in business relationships, be it with vendors, clients, or your employees. Ironclad contracts will avoid potential disputes in the future. A lawyer on a retainer makes sure that your contracts are clear, compliant, and in your favor.
You are in a Regulated Business: Some businesses, like healthcare, financial services, and food services, are highly regulated. Some companies need help to stay compliant, while non-compliance with the set regulations may attract fines or even cause the business to shut down. A retained attorney will ensure that your business stays on par with changing legislation.
You are Concerned About Intellectual Property: If you have a brand, unique products, or a business model that you need to protect, intellectual property issues are a concern. A retained lawyer can help you file for patents, trademarks, and copyrights while preventing others from infringing on your rights.
Issues with Employment: Employment law is always complex. It can involve anything from composing an employee handbook to litigating employment disputes. Legal problems connected with hiring, firing, and human resource policies commonly happen. If you retain a lawyer who knows the laboring laws, he can help you overcome all these issues with utmost efficiency and in a manner acceptable to him.
You frequently get sued or receive legal threats: If your business often gets sued or you fall under a specific category that puts your enterprise at risk for a lawsuit, then it is time to place your lawyer’s number on speed dial. Overcoming lawsuits without a good lawyer will not only cost you much but also damage the brand’s prestige.
Mergers, Acquisitions, and Sales of Businesses: These are monumental and legally complicated transactions for businesses. A retained attorney can assist you through negotiations, due diligence, and the legal paperwork necessary to complete these transactions.
Cost-Benefit Analysis: Is It Worth It?
First, having a lawyer on retainer seems prohibitively expensive. But consider it an investment: the cost of the retainer is usually a fraction of what fighting legal battles or losing money as a result of poorly drafted contracts would cost. Furthermore, immediate access to legal advice can be a source of much peace of mind, freeing you to devote more energy to developing your business.
How to Pick the Right Lawyer for Your Business
If you decide to have a lawyer on retainer, you must choose correctly. Here is how:
- Find Experience with Your Industry: He must be quite conversant with your industry and its special legal needs.
- Check Their Track Record: Research their experience and request references from other business clients.
- Gage Communication Style: You need advice that simplifies complicated legal issues into understandable terms that are responsive to you.
- Review the Terms of Retainer Agreement: Understand what is included and what is not in the retainer fee for either an hour of consultation or specific services.
Conclusion
Indeed, few people start a business believing that they will end up in court, but it is always better to be safe than sorry and have to start looking around when something goes wrong. As your business grows, the decision to have a lawyer on retainer becomes a wise move; it proves secure, efficient, and well-advised whenever you need it.