how a lawyer can represent small business and individual owners

by Emile Beahan 7 min read

Legally, only an attorney can represent a business entity in a court of law, which means you’ll need to hire an attorney. Otherwise, you’d be guilty of committing the unauthorized practice of law. There is an exception for small claims court, as lawyers are typically not allowed to represent people in these courts.

A lawyer can assist with employment contracts, vendor contracts, partnership agreements, confidentiality agreements, stock purchase agreements, leases and letters of intent. The list goes on and on depending on the type of business.Mar 31, 2021

Full Answer

Can a company represent itself without an attorney?

While these exceptions do exist allowing companies to represent themselves without an attorney, the prevailing wisdom is to hire an experienced business attorney for any legal disputes. The experienced attorneys at Romano Law are ready to help.

What types of lawyers are available to small businesses?

People sometimes wonder what types of lawyers are available to them. Lawyers often specialize in either business law or personal law. For this reason, you should search for lawyers who have business law experience. The following sections describe six types of lawyers for small businesses.

Why should I hire a lawyer for my Small Business?

Hiring an attorney can also help ensure that your business is operating legally. They can review contracts and documents that you would otherwise assume are legitimate. In addition, some lawyers are knowledgeable about tax issues, even if they aren’t accountants.

What does an attorney need to know when selling a business?

The attorney also needs to consider who or what the seller is and who exactly holds title to the assets being sold. In small business transactions, this may be a larger task than it initially seems.

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What role does an attorney play in helping to form businesses?

What Role Does An Attorney Play In Forming A Limited Liability Company? Initially an attorney will help determine whether a limited liability company, the appropriate entity for the client, rather than a corporation, limited partnership, sole proprietorship or a general partnership.

What is the single owner of a law firm called?

Law Firm Partners Often called shareholders, they are owners and operators of the firm at the same time. The law firm can take many forms and structures. Firms with just one attorney are called sole proprietorships.

What type of business does not require an attorney to set up?

Sole proprietorship This means your business assets and liabilities are not separate from your personal assets and liabilities.

What's the difference between attorney and lawyer?

Attorney vs Lawyer: Comparing Definitions Lawyers are people who have gone to law school and often may have taken and passed the bar exam. Attorney has French origins, and stems from a word meaning to act on the behalf of others. The term attorney is an abbreviated form of the formal title 'attorney at law'.

Can a law firm have a CEO?

They used a search firm to research the history of attorney and legal services professional CEOs in law firms. The firm discovered the first Am Law 100 CEO, Scott Green. He was appointed in 2012 by Pepper Hamilton, which became the first Am Law 100 firm to officially hire a CEO without an attorney background.

Why every small business needs an attorney?

Existing small businesses have their share of legal issues to contend with and often need a lawyer to help get a resolution that benefits them best. These situations include things like debt collection, hiring and firing employees, and dealing with a lawsuit that has been filed against them.

What are the 4 types of business?

What Are the Four Types of Business Structures?Sole proprietorship. A sole proprietorship is the most common type of business structure. ... Partnership. ... Limited liability company. ... Corporation.

How do you structure a small business?

How to Structure Your Business: 9 Tips For Structuring New...Determine Your Level Of Involvement.Separate Intellectual Property And The Business Itself.Just Structure It.Determine How Personal Factors Affect The Business.Consider Your Future Funding Needs.If You Need Investment, Start With A C-Corp.More items...•

What Type of Business Do You Have?

If your business is a sole proprietorship, you can represent yourself in court. This is because you are an individual and can represent only yourself. As a sole proprietor, you can sue clients who owe you money, defend any claims against your business, and more. However, the process is complicated and experts don’t recommend it.

What Type of Court Case Do You Have?

Business law gets more complicated once you decide to incorporate your business. This is because you’ve chosen to separate your personal finances from your business finances. Therefore, you are no longer representing yourself, but a business.

Why Should You Consider a Lawyer Either Way?

Even if you don’t need to go to court, it’s a good idea to hire a business attorney to help you along the way. For one thing, he or she is adept at business law, including contract law. Having an attorney help you draft contracts and read through them to ensure there are no loopholes makes it less likely you end up in court in the first place.

What happens when a partner leaves a company?

When a partner or major shareholder decides to suddenly exit, it can potentially threaten the ability of the business to continue operating. Closely held corporations need to have buy-sell agreements or buy-back agreements to ensure that partners or major shareholders can sell their interest without legal entanglements or placing an undue financial burden on the company.

What are the intangible assets of a business?

Many intangible assets of a business should be legally protected. A company's name, logo, brand name, and distinctive goods and services are entitled to copyright protection. Proprietary computer software, semiconductor chip mask designs, vessel hull designs, and many other creations may be eligible for trademark registration. Patents are often thought to cover only machines and other manufactured products, but can also protect processes, such as a method for refining petroleum, or new compositions of matter, such as chemical compounds or mixtures. Trademark, copyright, and patent registrations can help a business protect the things that give it a competitive advantage in the marketplace.

Do business ventures involve legal maneuvers?

As you have just learned, business ventures involve quite a few legal maneuvers and know-how. While entrepreneurs must wear several hats in order to achieve some level of success, sometimes it's best to leave the more complicated matters to the experts. Visit FindLaw's Business and Commercial Lawyer Directory for a qualified attorney near you or learn more about state-specific laws on our closely held business legal answers page.

Issues You Can Handle on Your Own

There are certain matters that are fairly straightforward and/or not unduly difficult to learn and therefore do not require the services of an attorney who charges at least $200 per hour. There are enough expenses associated with running a business, why not save yourself a load of money and do it yourself if you can?

Issues Where You Will Need a Business Lawyer

Most of the issues outlined above can be handled by any intelligent business owner (if you can run a business, you can certainly fill out IRS forms or fill in boilerplate business forms). There are times, however, when a business faces issues that are too complex, too time consuming, or fraught with liability issues.

Get in Touch with a Business Attorney Before You Need One

You won’t need a lawyer for each and every legal issue that comes up in your business. But when you do, it’s good to know where to find the right one. And — more to the point — you may not know you need legal help until it’s too late, as attorneys can help you stay in compliance with the law and spot developing legal issues early.

Why Every Small Business Needs an Attorney?

Most small business owners rarely hesitate to take advantage of certain human resources — such as accountants and insurance agents — when they first start their businesses, and throughout the life of their businesses.

What a corporate attorney can do for you

A business attorney can advise you on issues that your business may face throughout its existence; examples of issues include what legal entity (e.g. corporation vs.

How Lawyers Help Small Businesses

It is easy for small businesses to gloss over hiring a lawyer because other matters, such as marketing, operations and advertising seem more pressing. Many legal issues may not be of immediate concern to small business owners who easily justify holding off on paying for these services.

Business Formation

Some of the most important matters are handled at the beginning of the business. For example, a small business lawyer may want to structure his or her business in a way that limits personal liability.

The Key Queries for Your Lawyer

For startups, incorporation and intellectual property are the most important topics to tackle with your lawyer. Proposed questions from our 55 legal professionals include:

Crucial Content

Business owners may have a good foundation of knowledge, but there is always an opportunity to learn and understand more. According to our surveyed lawyers, the best way to protect personal wealth from business risks is to understand incorporation. Nearly 93 percent of participants identified this as the No. 1 topic to tackle.

The Beginning Basics

For those who haven’t yet taken the plunge into business ownership, what are the most important questions to ask before getting started? Interestingly, in this case, our lawyers chose business operations over incorporation. Understanding operations before you dive into a business is the most important thing, according to respondents.

Conclusion

Whether you’re starting a small business or already have one underway, it’s important to know what your legal risks and options are. Before you hire a legal team, make sure you’ve got answers to the fundamental questions above.

Methodology

We surveyed 55 lawyers to get their thoughts on startup law. Based on the content of each answer, they were placed into one of several startup law categories to gain a cumulative look at the responses.

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Can a company represent itself without an attorney?

While these exceptions do exist allowing companies to represent themselves without an attorney, the prevailing wisdom is to hire an experienced business attorney for any legal disputes.

Can a corporation sue a small claims court in New York?

Small Claims Court. If a corporation sues in a New York small claims court, it must retain counsel. However, a corporation may defend itself in New York small claims courts, without an attorney: In the Small Claims Parts of New York District and City Civil Courts.

Can a corporation sue without an attorney?

An exception also exists where corporations may sue without an attorney in New York commercial small claims courts, including: While these exceptions do exist allowing companies to represent themselves without an attorney, the prevailing wisdom is to hire an experienced business attorney for any legal disputes.

Is a sole proprietorship a corporation?

Sole proprietorships are not considered voluntary associations. Unlike an LLC, a sole proprietorship is completely unincorporated, thus it is not a corporation or voluntary association. Therefore, courts do not require the owner of a sole proprietorship to hire an attorney to represent the proprietorship in legal proceedings.

What is the first task of a transactional lawyer?

The first task for the transactional lawyer is to determine whether the engagement may move forward by confirming the absence of real or potential conflicts of interest. To properly examine this area, all parties to the transaction, including business entities and individual principles, must be ascertained.

What is transactional representation?

A. THE TRANSACTIONAL LAWYER’S MANY ROLES. Transactional lawyers are required to fulfill many roles depending on the type of transaction involved , the lawyer’s skills, the client’s expectations and the complexity of the transaction.

What is the extent of representations and warranties?

Representations and warranties are included in virtually all acquisition agreements, although their extent will vary from transaction to transaction. In the sale of business context it is customary to receive extensive representations and warranties, even in asset transactions.

What is the definition of parties in a transaction?

DEFINITION OF PARTIES. The parties to the transaction, along with any ancillary parties such as parent or sister corporations, guarantors or individuals personally bound by employment, non-compete or other agreements are identified by name, role and entity type, and are clearly defined for consistent drafting. 2.

Is a written agreement regarding legal fees required by the Rules?

While a written agreement regarding legal fees is not required by the Rules (with the exception of contingent fee matters) [5] the experienced transactional lawyer knows that adequate initial documentation leads to client satisfaction, organization and professional liability protection.

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Corporate Governance

  • While most corporations will use an attorney to help with the process of incorporation, new businesses sometimes neglect the on-going legal requirements to maintain their corporation status. Annual shareholder, director, and partner meetings need to be held, and recording of minutes and the election of officers must conform with state requirements....
See more on findlaw.com

Intellectual Property

  • Many intangible assets of a business should be legally protected. A company's name, logo, brand name, and distinctive goods and services are entitled to copyright protection. Proprietary computer software, semiconductor chip mask designs, vessel hull designs, and many other creations may be eligible for trademark registration. Patents are often thought to cover only mac…
See more on findlaw.com

Employment Agreements

  • Many companies, especially technology companies, count the knowledge of their employees as some of their most important assets. Yet they fail to protect those assets through non-disclosure and non-compete agreementswith their employees. Inevitably, some employees will leave the company, and it's important to protect your business against their taking their knowledge of trad…
See more on findlaw.com

Exit Strategies

  • Entrepreneurs sometimes are so focused on starting a new business that they don't consider what happens if one of the principals leaves the business. When a partner or major shareholder decides to suddenly exit, it can potentially threaten the ability of the business to continue operating. Closely held corporations need to have buy-sell agreements or buy-back agreements t…
See more on findlaw.com

Find The Right Business Attorney Near You

  • As you have just learned, business ventures involve quite a few legal maneuvers and know-how. While entrepreneurs must wear several hats in order to achieve some level of success, sometimes it's best to leave the more complicated matters to the experts. Visit FindLaw's Business and Commercial Lawyer Directory for a qualified attorney near you or learn more about state-specifi…
See more on findlaw.com