when to get a lawyer for a small business

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?

When should you hire an employment and labor lawyer?

Using an employment and labor lawyer only makes sense when your business has employees. If it does, your business should comply with state and federal laws. An attorney in this area of the law can help you draft employee manuals and ensure safety standards are in place.

What are the different types of small business lawyers?

People sue businesses for many reasons, and it’s likely that most business owners will experience a lawsuit during the life of the business. Due to this, you should fully understand the types of small business lawyers that your business could work with. 1. General Business Lawyer 2. Employment and Labor Lawyer

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 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.

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 is better LLC or sole proprietorship?

A sole proprietorship is useful for small scale, low-profit, and low-risk businesses. A sole proprietorship doesn't protect your personal assets. An LLC is the best choice for most small business owners because LLCs can protect your personal assets.

What is required for starting a small business?

Open a Business Bank Account Your Employer Identification Number (or Social Security Number, in the case of a sole proprietorship) The formation documents for your business. Your business license. Ownership agreement documents.

Why do small business need 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 does an entrepreneur need a lawyer?

Lawyers have connections and a clientele base like you Lawyers will offer insights that may prove very useful in the long run to a start-up. In addition to offering legal services, they can be a marketing tool for your business as they speak of your business to potential clients.

What's the difference between a lawyer and an attorney?

People often confuse the words attorney and lawyer, believing them to serve different functions. However, the only real difference between the two is the region in which the word is used. They are effectively the same thing in terms of law, whether that be commercial, corporate, commercial law or contract law.

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)

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 can an attorney do for a business?

An attorney can assist you with partnership agreements and corporate bylaws. Contract review: A lawyer can help you in drafting and negotiating contracts. Handling employment issues: As a business increases its workforce, a business attorney can help keep up with labor laws and lawsuits.

Why is it important to invest in a small business attorney?

Because of that, many small business owners scramble to find the right business attorney only when faced with a grave legal problem (for example, getting sued by an employee or a customer.) That’s why it’s essential to know that investing in a small business attorney early on will often save you a bundle and help your business thrive in ...

What is flat fee for business?

Good Business lawyers charge flat fees for simpler projects like setting up your entity and drafting short contracts. Flat fees are usually less expensive than an hourly rate for the same project and help you save money. Monthly retainer fee.

What is the second common issue we help clients with that could’ve been avoided?

The second common issue we help clients with that could’ve been avoided is when they look to sell their business or acquire another company. Most people think that when they purchase a company, it is implied that they will receive all of that business’s assets. However, depending on how a company is structured, you may only be receiving the supply side of the business when you were also expecting to acquire the storefront or other real estate assets.

Should I consult an attorney for a business?

You should definitely consult an attorney to help you work through the issues stated above. However, your real focus should be put into preventing legal issues from ever even happening. While you may not require an attorney’s help to mitigate every issue, a knowledgeable and experienced business attorney will play a key role in securing your business overall. Preventing legal issues before they happen will be crucial to your business’s success as once you are sued, the only question you will have left to answer is how much will the damages, court fees, and attorney’s fees cost you.

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.

What is a general business lawyer?

1. General Business Lawyer. As the name suggests, a general business lawyer can provide legal advice on a wide range of matters. This type of lawyer has a hand in every legal discipline. If your business doesn’t deal with special circumstances, a general business lawyer may be well suited to your purposes.

Why is it important to hire a lawyer?

However, if your business is subject to a lawsuit, you’ll be relieved that you hired a lawyer. When evaluating lawyers, you should ask a lot ...

What is a CPA for a business?

Taxes for businesses can get complicated. For this reason, it pays to use a qualified tax professional, such as a Certified Public Accountant (CPA). While a CPA can be beneficial when your business gets audited, there could be a situation where the tax authority decides to take legal action against your business.

What kind of law do lawyers specialize in?

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.

What is an employment lawyer?

Employment and Labor Lawyer. Using an employment and labor lawyer only makes sense when your business has employees. If it does, your business should comply with state and federal laws. An attorney in this area of the law can help you draft employee manuals and ensure safety standards are in place.

What happens when you buy and sell a business?

When you buy and sell businesses, you’ll negotiate for the property and assets of those businesses. It may not always be clear what you’re entitled to during these negotiations. It pays to have a mergers and acquisitions (M&A) lawyer representing your interests in the transactions.

Can a lawyer review a contract?

In addition, some lawyers are knowledgeable about tax issues, even if they aren’t accountants. They may have handled legal tax matters for other business owners and can make sure you don’t run into the same issues.

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