Many small business owners realize the importance of hiring a lawyer when they are just starting, but most do not consider it an ongoing expense. But, any Missouri corporate law attorney worth their salt will tell you that keeping a good business attorney around offers a range of advantages.
You may not have the type of business where it is necessary to keep one on retainer, and there are some issues where you can proceed without a lawyer. But, legal advice should be part of your ongoing cost of doing business for a few reasons.
Legal Problems You Can Tackle Yourself
Although several of these matters are legal matters, paying an hourly fee or a retainer to have a lawyer handle them might be an unnecessary expense. There are plenty of legal resources online and legal blogs that offer solid advice. Just make sure you choose one with a reputation for providing accurate information that is applicable to your state and type of business.
You will probably be okay without an attorney if you are:
- Drawing up a business plan, partnership agreement, or LLC operating agreement.
- Choosing a business or domain name: those that are taken or trademarked can be found with a quick web search
- Applying for an Employer Identification Number (EIN)
- Applying for licenses or permits
- Hiring staff
- Updating business agreements or terms of sale
- Filling out IRS or tax documents
When You Need an Attorney
If you have better-than-average legal knowledge, you can probably do a few more things on your own. However, there are some situations where having a lawyer is imperative. These are issues where you could be in legal jeopardy, when the situation is extremely complex, or when not having an air-tight contract could cause you problems down the road. A few examples would include:
- A former employee is suing you for a matter pertaining to harassment or discrimination
- You are entering into a merger, acquiring another company, or selling your business
- You or your company are being investigated at the state, local, or federal level
- Your company is implicated in an environmental issue, even if you were not directly involved
When hiring a lawyer, find one who specializes in business and tax law and has practical experience in your industry. A trustworthy corporate attorney is a good business partner to have around.
What does a lawyer do for my business?
A lawyer is not just about fighting your case in court, as they can help guide you through legal hitches and ensure your company’s path is proper and straightforward. Here are several ways that a lawyer might assist you:
- Protection of ideas: If you come up with something new, like making a new logo or devising a concept for some product, a lawyer may be able to help ensure trademarks or patents are lodged to stop others from making a move on your original work.
- Drafting Contracts: You are using various vendors, clients, and partners. A lawyer could draft a clear contract or ensure the contracts you drafted protect your interests.
- Fending Off Lawsuits: Your business will be sued sometime, and you will most definitely need a lawyer to defend it.
- Follow the Law: The more your business grows, the more rules to follow, from employment laws and regulations about tax to more that are relevant to your new business. Lawyers can help you understand the vast legal implications.
When Should You Consider Bringing a Lawyer On Board?
Not every small business needs a lawyer immediately. Of course, there are quite some moments when hiring them is really important. In the next section, find out which signs show if your business is ready.
You Are Earning More Dollars
This is because if your business generates more money, you will be at risk. You stand to lose a lot in case something goes wrong. A lawyer can ensure your finances are safe and the contracts you have signed are not going to create an unexpected problem.
You are Hiring Employees
However, it gets complex when you hire people. They have many laws to offer them, such as right wages, safe working conditions, benefits to employees, and several other laws. A lawyer helps to establish just policies on such matters so no one lands into trouble afterward.
You enter into major contracts
You always want to get a lawyer to review your contract any time you make a deal that is extremely important to your business. Lawyers know all the fine print, and they will help you make sure that you are not agreeing to anything that could hurt your business.
You are expanding or purchasing property
Are you opening a second location or moving into a bigger office? When real estate is on the table, some attorney assistance is required. Legal professionals can review any leasing contract and contracts relating to properties to get the best possible rent deal.
You Think You Might Be Sued
At some point, despite the precautions you take, you are likely to encounter litigants who may come your way. This is simply because of an accident occurring in your shop, perhaps a product that does not deliver as promised. Should you feel the threats are increasing, it is high time you sought a lawyer.
Why can not I just use Google Legal Advice?
You learn a lot from the internet, but the law is complicated and changes day by day. What is working for one business would not work for another business. Lawyers are trained for such complexities and give you advice based on your circumstances. And if something goes wrong, having a lawyer whom you already know and can trust makes solving the problem easier.
Do You Need a Lawyer Full-Time?
A business does not necessarily need to employ a full-time lawyer. Most businesses hire lawyers only to handle special cases. Others have a lawyer to call on when a need arises. As your business grows, it will be great to start planning to have a lawyer knowledgeable about your business, although you do not need to put them on your payroll each day.
Finding the Right Lawyer
If you believe your business is ready to be lawyered, then here is how you should go about finding the perfect lawyer for your business.
- Look for Experience: Seek a lawyer who has handled businesses like yours. If your business is running a restaurant, then experience in food law will benefit you more.
- Ask for Referrals: Ask around other business people and seek recommendations.
- Read Reviews: Read reviews on the net to get a feel for the reputation of a lawyer.
- Meet in Person: Talk to a few lawyers and see who feels like a good match. You want to work with somebody you can trust and be comfortable asking questions.
Conclusion
Hiring a lawyer is such a big decision, and it can save your business from trouble in the future. As your small business grows, take a moment to think about your risks and responsibilities. If things get complicated, it is high time to bring in the help of a lawyer to make sure your business will be safe and ready for anything.