when must company hire a lawyer

by Dr. Kevin Kris PhD 9 min read

Before you file for your first copyright, before you hire your first employee, and before you interact with your first supplier or customer, you need to hire a lawyer. That is especially true if there are two or more people creating a business together. No two business owners will be on the same page all the time on every legal issue.

Lawsuits can be costly for businesses, so most companies hire a business lawyer before they need one. If you wait until your company is in a legal battle to hire an attorney, it might be too late, and you will end up paying more in litigation costs.

Full Answer

What you should consider when hiring a lawyer?

 · If an employee works in a non-unionized workplace and wants to try to unionize, the employee may well want to consult an employment lawyer. An employment lawyer can help by advising employees about their right to form a union and the activities in which they can engage in connection with that effort.

When do you legally need to hire an attorney?

When You Absolutely Must Hire a Lawyer You don’t always have to hire a business contract lawyer. However, before signing a business contract, always have a lawyer look it over and confirm that you’re getting what you expected. This doesn’t mean that the lawyer has to be there when the contract is signed, but at some point before that, he or she must go over all of the …

What to consider when hiring a lawyer?

 · While you won’t initially need a lawyer on your team full time, you will want to get an in-house attorney when one of two milestones are reached: you have 75 -100 employees …

What to ask when hiring an attorney?

 · As a result, most small business owners only hire an attorney experienced with business matters when confronted with a serious legal problem (e.g., you're sued by a …

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In what situations should you hire a lawyer?

Below are the top ten reasons to hire an attorney.The Law is Complicated. ... Not Having a Lawyer May Cost You More. ... Lawyers Know How to Challenge Evidence. ... Filing the Wrong Document or Following the Wrong Procedure Could Ruin Your Case. ... They Have Access to the Witnesses and Experts You'll Need on Your Side.More items...•

When should you consult with legal counsel?

Some of the common reasons to consult legal counsel are: Before entering into any contract for the purchase or sale of real estate, personal property of significant value. All contracts should be in writing and review before formation. For tax planning, and to avoid tax issues.

What are 3 questions you should ask a lawyer before hiring?

Below are ten questions to ask your potential lawyer.How long have you practiced law? ... What type of cases do you generally handle? ... Who is your typical client? ... How many cases have you represented that were similar to mine?More items...•

Why is it necessary to have a lawyer?

An attorney will guide you through the entire legal maze and provide you ample protection. Adopting a child , starting a new business or filing a divorce involves legal processes which you might not be versed with. Hiring an attorney will help you go through these steps well armed with the right legal knowledge.

What's the difference between attorney and lawyer?

Instead, 'lawyer' or 'solicitor' is more common. For example in the US, an attorney is a general term for a lawyer that has passed a bar examination and can practice law in a particular jurisdiction. Attorneys act as lawyers but not all lawyers can perform the work of attorneys.

How do I talk to my lawyer for the first time?

Tips for Talking to an AttorneyAlways be as honest and candid as possible about the facts of your case. ... Ask questions if you don't understand something that your attorney mentions or explains to you.Approach an attorney about your case as soon as you think you may need one.More items...•

How do I prepare for an attorney interview?

If you are interviewing virtually, all of these tips apply.Do your research. Lawyers are known for being good researchers. ... Be presentable and dress your best. ... Come prepared to ask questions. ... Be personable and show enthusiasm. ... Be genuine. ... Promptly send a thank-you note.

What are good questions to ask lawyers?

Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•

Why do you need a lawyer?

A lawyer can help you make difficult decisions about your employees. Firing. Particularly if you are worried that an employee might sue, you should consider getting legal advice before firing an employee for misconduct, performance problems, or other bad behavior.

What can a lawyer do for you?

A lawyer can quickly review and troubleshoot employment-related agreements you routinely use with your workers , such as employment contracts, severance agreements, or releases. A lawyer can check your contracts to make sure that they contain all the necessary legal terms and will be enforced by a court.

What to do if an employee sues you?

If a current or former employee sues you, speak to a lawyer right away. Employment lawsuits can be very complex. You have to take certain actions immediately to make sure that your rights are protected -- and to preserve evidence that might be used in court.

What would happen if you fired an employee?

Firing the employee would dramatically change your workplace demographics.

How long does it take to file a lawsuit?

The time limits for taking action are very short -- many courts require you to file a formal, legal response to a lawsuit within just a few weeks. As soon as your receive notice of a lawsuit against you, begin looking for a lawyer. Claims and complaints.

Do you have to talk to a lawyer every time you evaluate a job?

On the other hand, you don 't need to talk to a lawyer every time you evaluate, discipline, or even fire a worker. After all, lawyers don't come cheap. If you run to a lawyer every time you have to make an employment-related decision, you will quickly go broke.

Can you fire a worker for excessive absences?

You are firing the worker for excessive absences, if you are concerned that the absences may be covered by the Family and Medical Leave Act or the Americans with Disabilities Act.

What to do after registering a business?

One of the first steps to take after registering your business is putting a lawyer on retainer. You might enter into agreements and contracts throughout the course of your business that include unexpected obligations. Contract breaches, either on your part or on the other person's part, can cause serious problems or even bankruptcy.

Can a breach of a contract cause bankruptcy?

Contract breaches, either on your part or on the other person's part, can cause serious problems or even bankruptcy. The following situations describe when to hire a lawyer.

Is Rocket Lawyer a substitute for an attorney?

Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer. Rocket Lawyer On Call® Attorneys.

Do you have to have a lawyer before signing a contract?

However, before signing a business contract, always have a lawyer look it over and confirm that you’re getting what you expected. This doesn’t mean that the lawyer has to be there when the contract is signed, but at some point before that, he or she must go over all of the clauses. Stock contracts can even create problems if you don ’t get them ...

How to prevent unnecessary attorney costs?

To prevent unnecessary attorney costs at the inception of your business as well as tremendous costs after a lawsuit has been filed, you might consider a consultation arrangement with an attorney. Such an arrangement would entail you doing most of the legwork of research and the attorney providing legal review or guidance.

What to do if your business is facing challenges?

Contact a qualified business attorney to help you address potential challenges a business can face.

What happens if your business doesn't cause environmental problems?

An environmental issue arises and your business is involved (even if your business didn't cause the environmental problem, you may be penalized) Negotiating for the sale or your company or for the acquisition of another company or its assets.

Do you need legal help when it's too late?

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 do start ups need lawyers?

At the most basic level, start-ups need lawyers to help them deal with three groups: The government. You don’t want to violate laws. You also need to be sure you are doing business in a way that doesn’t create unnecessary tax liability and that you pay the taxes you owe. Third parties and the public.

How much does a lawyer charge per hour?

The lawyers most start-ups will deal with are likely in the $350-$800 an hour range, but this varies from firm to firm, obviously. Most big firms bill in increments of six minutes (i.e., 0.1 of an hour), but some charge in 0.25 hour increments. The range for hourly rates is huge. A junior lawyer at a small firm in a smaller city may charge $150 an hour, while senior partners in big firms in major cities have been known to charge over $1,000 an hour.

What happens if a lawyer doesn't speak the language?

First, a lawyer who doesn’t seem to speak the language of your business. If someone doesn’t understand the world in which you are operating, it’s harder for him to adequately represent you.

How much does a lawyer cost?

If you work with a lawyer, you can probably expect to pay between $2,000 and $5,000, though some firms will give discounts that get the cost below that. This can vary depending on complexity: how many founders, what “bells and whistles” will be included, whether you are doing an LLC or a corporation, and how you handle certain items, such as stock option plans, and so on.

What is an LLC?

Establishing a business entity of some sort ( LLC or corporation) to protect you personally from business liabilities

What is fit in a job?

First and foremost, look for “fit” (i.e., someone you trust, get along with, enjoy working with, feel has an interest in you and what you’re working on, and can relate to you). Referrals are often the best place to start.

When do you need to establish rights and expectations of the founders?

Each other. When multiple people form a company together, it’s best to establish the rights and expectations of the founders upfront in case there are disagreements down the line.

How to find a good lawyer?

Finding the Right Kind of Lawyer 1 Ask family, friends, or co-workers for recommendations. 2 Check with your state and local bar associations. 3 Consult lawyer referral services offered by a union or community group you belong to.

What is the area of law that lawyers specialize in?

Many lawyers specialize in certain areas of law, such as family, estate, personal injury, contracts, or civil rights. It’s important to find a lawyer who has relevant experience with the legal area that you need. Take time to search for the right lawyer.

What happens if you don't get a lawyer's fee?

In a contingency fee arrangement, the lawyer takes on the risk that your case might be unsuccessful. If you don’t get any money, your lawyer won’t get attorney’s fees. In some contingency fee arrangements, you might have to reimburse the lawyer for case-related expenses even if you don’t win your case.

What does it mean to pay a lawyer a flat fee?

If you pay a flat or “fixed” fee, you pay the lawyer a set dollar amount for a service, like writing a will. Many lawyers charge a flat fee for uncomplicated services like drafting incorporation papers, handling an uncontested divorce, or filing a simple bankruptcy.

How do lawyers charge?

When you choose a lawyer, you’ll talk about how to pay for their services. Most lawyers charge by the hour, or part of the hour, they spend working on a case. Some lawyers charge a flat fee for a service, like writing a will. Others charge a contingent fee and get a share of the money their client gets in a case. Your lawyer should tell you if ¾ in addition to paying a fee ¾ they’ll charge you for expenses related to your case: for example, copying documents, court filing fees, or depositions.

What is a retainer in a lawyer?

Before your lawyer starts to work on your case, they may ask you to pay a financial deposit, called a retainer. The lawyer may use the retainer to pay expenses and fees.

What to do if your lawyer doesn't treat you fairly?

If you think your lawyer didn't treat you fairly, didn’t handle your case effectively, or overcharged you, talk with him or her and try to work out an agreement. Depending on the circumstances, you may be free to fire your lawyer, or you may need a judge’s permission.

What happens if you are not a lawyer?

Even experienced lawyers typically do not represent themselves in court. Also, attorneys tend to specialize in one or more legal practice areas, such as criminal defense or tax law.

What happens if you don't have an attorney?

If you're not an attorney, you may struggle with the deadlines and protocol for properly filling out and filing certain legal documents. One late or incorrect filing could derail your case, delay a given legal procedure or worse - have the case thrown out altogether (and not in your favor).

What is the disadvantage of being a non-attorney?

Non-attorneys are generally at a disadvantage when squaring off against opposing counsel or doing business with another party that has legal counsel. As explained above, the law is complicated and an attorney representing your adversary (or even a non-adversarial party entering into a legal agreement with you) will take advantage of this inequity.

Can a lawyer present your strongest case?

Most non-attorneys don't personally know the types of professionals who can help with discovery or challenge evidence or testimony by the opposing party. 6. A Lawyer Can Present Your Strongest Case. Pleading guilty or admitting fault isn't the only choice, even if there's evidence pointing directly at you.

Do I need an attorney for a speeding ticket?

Not every legal matter requires the use of an attorney. Fighting a speeding ticket and going to small claims courts are two examples. However, in many other situations involving a legal dispute, challenge, or deal, you may not wish to chance the risks of going it alone without the advice of an experienced lawyer who can help you out. In fact, while good legal representation may not be cheap, it can help get you out of a number of sticky situations, such as a bad divorce, lost job, or DUI violation.

Can a solid case unravel without a lawyer?

A solid case can quickly unravel without the help of a trained and emotionally detached attorney. Similarly, failing to hire a lawyer when starting a business, reviewing a contract, or embarking on other endeavors with potential legal ramifications can result in otherwise avoidable pitfalls. 2.

How much do workers comp lawyers charge?

Additionally, many states place caps on contingency fees in workers' comp cases. The percentage varies from state to state, but is generally between 15% and 25%. However, the fee can be as low as 10% and as high as 33% in some states . (For more information about fees, see our article on how much it costs to hire a workers' comp lawyer .)

What to do if you have a work injury?

If your injuries are not clearly work-related, require extensive medical treatment, involve long periods of time off work, or result in permanent disability, you should call a workers' compensation lawyer.

What to do if you can't work again?

If you can never work again, you'll need to maximize your workers' comp benefits and structure them in a way to last well into the future. If you need to change careers, you'll need to secure training in a new line of work. A lawyer can help you do both.

What to do when you have a dispute with an insurance company?

Any time you're in a dispute with the insurance company, you should consider hiring a lawyer to represent you. You will need to gather evidence in order to challenge the insurance company's position, which may include taking depositions, requesting an independent medical examination, and hiring expert witnesses—all of which require legal knowledge and skill.

Can insurance companies deny or delay medical treatments?

Insurance companies often deny—or delay in approving—expensive medical treatments, such as surgery. A lawyer can put pressure on the insurance company to approve necessary medical treatments in a timely manner. Your ability to work has been affected.

Can you sue your employer for a work injury?

For example, if you were injured as a result of your employer's intentional act, or if you're a crewmember on a vessel or an interstate railroad worker, you can usually sue your employer in court for a workplace injury.

Do lawyers get more settlements?

You're likely to get a much higher settlement offer when a lawyer is involved. Lawyers understand the law, know how to negotiate, and can use various tools to build up your case. Because of this, you will probably receive more in benefits if you hire a lawyer, even after the lawyer takes his or her fee.

What can a personal injury law firm do?

In some cases, a personal injury law firm may also have medical personnel on staff that can evaluate your claim and tell you what type of personal injury claim you have and also interpret the medical records that they receive from your physicians and serve as a buffer between you and the physicians. They will also be able to make sure that you are receiving the best personal care for your injuries and best serve your personal injury case by being thorough and professional.

How to avoid medical malpractice?

Avoid Medical Malpractice Statute of Limitation Issues. If you have a medical malpractice claim, time is of the essence. There are state statutes that require you to put the doctor on notice within a specific period of time. If you believe that you are a victim of medical malpractice, you should engage counsel as soon as you can.

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Advice on Employment Decisions

Representation in Legal Or Administrative Proceedings

  • Lawsuits.If a current or former employee sues you, speak to a lawyer right away. Employment lawsuits can be very complex. You have to take certain actions immediately to make sure that your rights are protected -- and to preserve evidence that might be used in court. The time limits for taking action are very short -- many courts require you to fil...
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Reviewing Documents

  • Contracts and agreements.A lawyer can quickly review and troubleshoot employment-related agreements you routinely use with your workers, such as employment contracts, severance agreements, or releases. A lawyer can check your contracts to make sure that they contain all the necessary legal terms and will be enforced by a court. If you have included any language that mi…
See more on nolo.com

Next Steps

  • If you have decided that it might be wise to speak to a lawyer, your next step is to find a good one. For tips and information on finding an attorney, read Nolo's article How to Find an Excellent Lawyer.
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