when should my small business get a lawyer

• Plans for big growth. Anyone that has BIG PLANS for their business really needs to talk to an attorney. ...
• Considering outside funding. Outside funding could mean structured debt or private investors. ...
• Artful and fanciful names that need protection. If you have developed a unique and innovative brand, you will want to make sure that you have protected it. ...
• Generating over $25,000 per month in gross revenue. $25k is an arbitrary number. Maybe the number should be $10k or 50k – it doesn't really matter. ...
• Quickly opening multiple businesses or brands. If you are quickly opening multiple businesses or brands, chances are you are planning for big growth and are generating some money. ...
• Is it too late? Many people wait until it is too late to hire a lawyer. ...

Full Answer

Do I need a lawyer for my Small Business?

It should be stated that if your business is well-funded or you feel that you need the assistance of an attorney, you can always retain a lawyer to help you with everything listed above.

How much does it cost to hire a small business attorney?

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?

Where can I find legal advice for starting a law firm?

( Rocket Lawyer, LegalZoom and Nolo are three popular resources to check out.) For most startups, choosing a business structure and forming company can be handled this way.

Do I need a lawyer to let someone leave my business?

To avoid putting your business at risk of a lawsuit—an issue that 30% of small businesses worry about—the lawyer can advise you if you need to take additional steps or gather more documentation before letting the person go. If you’re hit by a lawsuit yourself—which can happen to even the smallest businesses—you’ll need a lawyer on your side.

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

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

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

A sole proprietorship is the simplest business form. It doesn't require that you register your business with your state, so no, you probably don't need an attorney to start this type of business.

Should I speak to a lawyer before starting a business?

But meeting with a small business attorney before starting a business can be one of the smartest moves you'll ever make. A business lawyer can explain how to start a business and answer your business law questions. But more importantly, a lawyer can identify the risks you face and help you minimize them.

What are multiple reasons you need a lawyer for a startup?

For this and other important reasons, you most likely will need a lawyer for your startup.Contracts. Most businesses execute contracts for space, services, and supplies. ... Registering, Licensing, and Permits. ... Business Form. ... Multi-State Business. ... Strict Conformity. ... Capital. ... Variety of Entities. ... Autonomy.More items...•

What does a business lawyer do?

A business lawyer is responsible for assisting corporations with legal matters. Their role is to ensure everything done at the company is legal and above board. From mergers and acquisitions to incorporations and bankruptcies, every legal aspect related to the company's business activity will be under your purview.

Why is it advisable to an entrepreneur to hire a lawyer?

A business attorney isn't just there to represent you in court. Rather, your business lawyer is trained to advise you in a variety of matters concerning your company, including contract formation, mergers, taxes and more – all without you having to hire him/her as a new employee.

Why do small business need an attorney?

Why do small businesses need a lawyer? Small businesses rely on lawyers to provide legal expertise in some areas, which they might not be well-versed. These include the knowledge to: Ensure compliance: A lawyer can help make sure that your business opens and operates by federal, state and local laws.

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.

Why is there a need to hire a lawyer in any partnership or corporation business?

By hiring a lawyer, your legalities (such as contracts, tax documents, and the likes) will surely be in order, reducing the chances of getting sued by your employees or other entities. All your bases will basically be covered so you can just focus on the things that can improve your business better.

Does A Small Business Owner Need A Lawyer?

The above is not an exhaustive list of legal tasks which small business owners can do on their own. It should be stated that if your business is well-funded or you feel that you need the assistance of an attorney, you can always retain a lawyer to help you with everything listed above.. Issues Where You Will Need a Business Lawyer. Most of the issues outlined above can be handled by any ...

When Do Start-Up Businesses Need to Hire a Lawyer? | Nolo

Once you have a great idea for your start-up business, do you need to hire a lawyer to help you get started? Not necessarily. A lot of the initial steps related to choosing and forming your business entity you can do on your own.

Business Attorney: When & How to Hire Lawyers for Your Business

When you are starting or running a small business you are faced with many problems, obstacles, and worries. One of the most important questions that inevitably pops up is: when and how to hire lawyers for your business? We all know that attorneys charge pretty step fees and many startups don’t have much extra cash for legal services. Because of that, many small business owners scramble to ...

Does Your Small Business Need a Lawyer? - SCORE

Rieva Lesonsky is president and CEO of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBusinessCurrents.com.

Do you really even need a small business lawyer for your online business?

So many online entrepreneurs think that they don't need a lawyer to help them with their online business. And you know what?

When to Hire a Lawyer for Your Online Business?

Here is a shortlist of people that would be well-advised to hire a lawyer to handle the legal needs of their online business.

Things to consider when hiring a small business lawyer

If you have decided that it is probably worth your while to talk to a lawyer, then here are three considerations you need to think about before you write that big check:

Questions you should ask yourself and the lawyer

So as you venture forth into the project of selecting a lawyer for your online business venture, here are a couple of questions you should consider.

What about questions to ask the lawyer?

Here is a quick list of questions you should ask any small business lawyer you are considering hiring:

Other Online Resources

When to Hire a Lawyer for Business Matters (and when to Do it Yourself)! (SBA)

Why do I need a lawyer for my business?

An attorney will protect your interests when it comes to trademarks, copyright, and anything else that needs protection. A small business lawyer will benefit your business in more ways than you may think, especially when it comes to the success of your ventures.

What should an attorney do for a business owner?

As a business owner, you have more important things to do, so your attorney should handle worker’s compensation issues, draft the necessary agreements for independent contractors, deal with hiring new employees and even fire them safely without legal repercussions. When Filing a Patent.

What does it pay to have a professional?

It pays to have a professional going through the legalities and handling things according to the law. There are so many implications that come with the selling or buying of a company. You need someone to help you value it, write the purchasing and acquisition agreements, and transfer any licenses or permits necessary.

What is the best thing about an attorney?

When it comes to legal matters being investigated, a professional attorney can help you reduce any potential losses but the best thing about an attorney in this situation is that they can actually help you avoid them in the first place. When You Are Dealing With Properties.

What to do if you don't have your tax?

Taxes are the bane of small businesses, and if you don’t have yours in order, things can get out of hand quite quickly. Beyond that, your employees, if you have any, may accuse you of something, and a small business lawyer will help you navigate the situation. When it comes to legal matters being investigated, a professional attorney can help you ...

What can a lawyer do to help you?

A professional attorney will help you out of many sticky situations, and even though they can’t protect you from every lawsuit, they can help reduce your exposure or get out of it without losing your business. When You’re Being Investigated.

Do I need a lawyer to incorporate my business?

When Incorporating Your Business. If you need to incorporate your business, it’ll take more than just signing a check and filing a certificate.

When does a startup need a lawyer?

Business structure: Plenty of legal self-help resources can be found online that can help you form a corporation, partnership or LLC on your own. ( Rocket Lawyer, LegalZoom and Nolo are three of the most popular legal self-help websites.) In general, most startups can handle their business formation this way.

When does an existing business need a lawyer?

Debt collection: Unfortunately, at some point or another every small business owner has a client or customer who doesn’t pay their bill. Debt collection may not work, so if you need to take the client to court, you may want an attorney to offer advice or represent you (if it’s a larger claim).

Knowledge is power

Legal issues can be intimidating for small business owners. Knowledge is power, so educate yourself as much as possible. Legal self-help sites such as the ones I mentioned above will give you an overview of legal issues that affect small businesses, as well as forms, templates and other tools you can use to handle simple legal matters yourself.

What do small business owners spend most of their days on?

Small business owners spend most of their days focused on the nitty-gritty, like marketing their businesses, managing employees and serving customers. One area that tends to take a backseat: legal concerns.

What to do if you are hit by a lawsuit?

Having a relationship with a lawyer before you need one can ensure you have someone to turn to in an emergency.

Why do you need a contract?

Make sure your contract is clearly written, outlines the scope of work and payment, and covers all the possibilities that could go wrong.

Can an attorney represent you in court?

If you need to escalate the situation and take the client to court, an attorney can either represent you or offer advice.

Does the law intimidate small business owners?

The law intimidates many small business owners, but it doesn’t have to. The key is to educate yourself as much as you can. Use self-help legal sites such as those mentioned above to get a basic understanding of legal issues.

Can I register my business online?

You might be able to register online with your state or use an online service to register your business, but it might be a good idea to use an attorney if your business is at all complicated. Corporations or S corporations must register with the state as well.

Do I need an attorney to start a business?

The simpler your business, the less you'll need an attorney. A sole proprietorship is the simplest business form. It doesn' t require that you register your business with your state, so no, you probably don't need an attorney ...

Why do small businesses need a lawyer?

Small businesses rely on lawyers to provide legal expertise in some areas, which they might not be well-versed. These include the knowledge to:

When do new small businesses typically use a lawyer?

The specific scenarios when start-up small businesses often choose to consult a lawyer include:

Do I need a lawyer to start a small business?

Retaining the services of a lawyer is not required as a condition of starting a business. In fact, many of the steps of starting a business cited above can be performed without a lawyer. This means the decision to hire a lawyer or go the DIY route depends on your business entity.

Do I need a lawyer to start an LLC or corporation?

LLCs can benefit from a lawyer as these entities often require filing articles of organization (or a certificate of formation) with the state, the appointment of a registered agent and adherence to other regulatory requirements. Therefore, consider creating an operating agreement.

1. Solve legal disputes on time

Legal disputes can bring your business to a halt. If you already have a business lawyer in your team, you can save time solving most of the legal issues. Having a lawyer in your team means you have someone who understands your business in and out, and he can hit the ground running.

2. Avoid legal mistakes

There are a lot of mistakes a small business can make without being aware of. If you are just getting started as an entrepreneur, you will likely face pitfalls that may result in your business collapsing.

3. Refer you to experts when you need help

An experienced business lawyer will know when your business needs special assistance and help you get experts in that field. When you need additional help on legal issues like filing business taxes, an attorney can help you in time.

4. Improve your chances of getting paid

Dealing with debtors is one of the most challenging things for most small businesses. In most cases, when clients owe your company some money, and they are taking ages to pay, you may reach out to your lawyer to send a request on your behalf. When this happens, you can motivate your clients to take immediate action to pay.

5. Ensure all contracts and legal agreements are genuine

When you are getting to a contract or securing a tender, your business needs a lawyer. In most cases, small businesses forget the importance of having a solid arrangement until it’s late. When you get into a contract that you don’t understand, you are more likely to breach the contract and meet hefty penalties.

Final Thoughts

If you own a small business or you are looking forward to starting one, you should not forget to include a business lawyer in your team. Most business attorneys are well conversant with all the legal formalities required when registering your business.

What is a business lawyer?

A business lawyer can quickly help you realize when you need additional help – especially with complicated tax matters, or any other specialized assistance. A well-connected business lawyer will be able to quickly refer you to other professionals that can provide the assistance and the guidance that your business needs.

Why is it important to have a lawyer on your team?

Having a lawyer on your team can tilt the field to your advantage in the event of a lawsuit. If you are threatened with legal action, having a lawyer already on your team means that he already knows your business, which allows him to hit the ground running. Even more importantly, a savvy business lawyer will have constructed your business ...

What to do if a client owes you money?

If a client, vendor, partner, or other associate owes you money and is dragging his feet on the matter, by simply asking your lawyer to send a request on your behalf, you can motiva te immediate action. In the event that this alone is not enough to convince the individual to pay, your lawyer will know what your next steps should be in order to collect the money you are owed.

Is it good to have a lawyer for a business?

This proves true for both experienced entrepreneurs and young business owners who are just getting started. A good business lawyer, with specific knowledge of your business, will help you avoid problems that you did not know existed, which can save you huge amounts of money and stress.

Written By

Jane Porter is a freelance writer and editor based in Brooklyn, NY. You can find more of her work at Janeroseporter .com

Jane Porter

Jane Porter is a freelance writer and editor based in Brooklyn, NY. You can find more of her work at Janeroseporter .com

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.