Small business owners know the value of having an attorney by their side to offer advice and manage legal obligations can be priceless; but finding one may take some time. Here is everything you need to know to find the best small business attorney for your needs.
What is a small business attorney?
A Small business attorney is a lawyer who specializes in representing small companies and their owners. Sometimes known as commercial or corporate lawyers, these specialists assist any legal hurdles their owners might encounter when starting and running their businesses.
Types of small business attorney
Here are examples of small business attorneys
General Business Attorney
The type of attorney offers general business advice that typically covers a broad variety of subjects. This type of attorney is suitable for companies that don’t require special legal guidance or representation.
Employment and labor attorney
If your small-scale business employs staff or is planning to hire employees, hiring them, an employment and labor lawyer can assist you in observing the laws of labor in your state and local areas. They can also help protect your company from wrongful terminations, and discrimination lawsuits.
Merger and acquisition attorney
Before combining with a business, or making an acquisition, ensure that you’re represented correctly by an attorney with expertise in merging and buying. Many business owners aren’t aware of the full extent of their obligations and allow their party to negotiate for a deal that is beneficial to them. Small-business attorneys can help them through this process and ensure that the negotiations are fair.
Also read: Legal Requirements for a Startup Business
Tax lawyer
If you’re a small-sized business, you are required to pay federal and state taxes. Tax requirements can become complicated and can lead to errors. Tax attorneys can assist you in resolving these errors if the IRS decides to take legal action.
Contract attorney
If you’re entering into an arrangement for business, which requires a written agreement, a contract attorney is to help create a legal contract that does not lock your business into unnecessary obligations.
Intellectual property attorney
This lawyer will help protect any trademarks, or patents that your small business owns. They can also aid you in avoiding costly legal issues and lawsuits that stem from IP violations by ensuring you adhere to IP laws.
What are the benefits of having a small business attorney?
A trusted attorney will help you navigate the legal facets of your business but also provide you with protection during the entire process.
“A small business needs the right representation to ensure that the person who owns the business is legally protected, both personally and professionally,” explained Jennifer Schenker, an Attorney at Tarter Krinsky & Drogin. “If a business owner guarantees anything financially, as a personal guarantee on behalf of the business, then that person would be deemed personally liable.”
When you are in the beginning stage of your company, an attorney for small businesses will ensure that it is properly structured and legally enforceable. They can also provide advice on the most common business issues such as tax and legal issues and starting up operations.
When your business grows, the need for a small business lawyer will help you protect your assets, including property and cash. They make sure that your employment contracts are legal and fair. They may draft contracts for clients, employees, and suppliers. If there are disputes, they are also able to handle the enforcement of contracts.
If your company requires representation, a small-business lawyer can assist you through the legal procedure. They assist with bankruptcy as well, helping you to deal with financial issues by determining the most efficient option.
Cost of hiring a small business attorney
The cost of retaining a small-business attorney can vary based on a variety of factors, including the budget of your company’s requirements, the lawyer’s experience, and the firm’s reputation. The complexity of the case and the regional rate will also affect the overall price. A smaller firm will probably come at the lower price, but larger firms have greater resources, which can result in faster results and more professional care for your case.
Typically, you will be able to pay anywhere between $125 and $225 per hour for a small-business attorney. This type of structure is typical for more complicated cases. However, for simpler situations, some lawyers prefer to charge a flat fee.
Where can you find a small business attorney?
One of the easiest and most efficient ways to find an attorney for small businesses is through referrals from your network. Communicate with other members or owners within your circle who own businesses similar to yours and ask them for referrals of lawyers they have worked with or who have relationships with – be sure to ask about their experience, so you can determine whether it would be suitable for your own.
Another method of finding the most suitable lawyer for small companies is to use online sources, for example, social media platforms such as LinkedIn. Although it might seem easy to simply read the reviews posted on these platforms, however, you should be aware that they could contain fraudulent sources. In addition, directories and online services may connect you to a lawyer who is local to the area you live in, depending on your specific legal requirements, if your network does not offer recommendations and you aren’t confident in online reviews.
Also read: 8 Funding Options To Raise Startup Capital For Your Business
When you need a small business attorney
Although lawyers and guidance are essential in certain situations, but there are instances in which you don’t need a small-business attorney, such as:
- Writing a business plan.
- Submitting IRS forms.
- The process of setting up your firm (registering the domain, bringing on employees, and filing permits).
- Updating a current partnership agreement.
However, it is recommended to hire a small-business lawyer to help you deal with more significant legal issues, like:
- Environmental issues that impact your company.
- If you decide to sell your business or buy a new business.
- If the state, local, or federal institutions lodge an action against your business.
Tips for optimizing your relationship with your small business attorney.
After you’ve located an attorney for small businesses that is a good fit for your needs and wants to stay in touch, here’s how you can keep the relationship:
- Communicate openly. In a client-attorney relationship, keeping secrets benefits nobody. Regularly communicate with your attorney and reply to their messages promptly. Discuss what each of you wants to get out of the relationship and inform them of any significant changes in your company.
- Trust their advice. If your lawyer offers suggestions, listen to them, lawyers often have more knowledge than their clients, who have figured out the lessons made by others who have faced similar situations. Schenker recommends discussing strategies with your lawyer by asking them questions. This will help you gain an understanding of all legal issues.
- Pay them properly. Insufficient payments can damage your reputation and damage your relationship with your attorney. Instead of putting off payments, contact your attorney for advice about possibilities of resolving the issue.
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