05/ 06/ 2005
by Judy Artunian
So you find yourself ready conduct a trademark search or draw up a complex sales contract, but not so ready to deal with the legal fees? Fortunately, there are ways to keep legal expenses in line without sacrificing the quality of the legal counsel you receive.
Before you hire a lawyer, check his credentials and specialties to ensure that he has experience in the area of law you need. This will help you avoid the cost of consulting a second or third attorney because your first choice didn't get the job done. The Web site of your local bar association should list members' credentials and specialties. Also, ask your accountant and other professionals for referrals.
When you find a lawyer you like, ask how he typically structures his fees. If his service sounds too costly, see if you can negotiate a more affordable plan. Always get a written fee agreement before you authorize a lawyer to do any work on your behalf.
If you find yourself entangled in a dispute that could evolve into a lawsuit, most lawyers recommend trying mediation first. Mediation gives you more control over the outcome than you would have in a trial. The mediator is usually a retired justice, judge or lawyer. Both parties and the mediator gather in a room and come up with a way to resolve the dispute. Your lawyer could still be involved, but his fee would be far less than it would if you had gone to trial.
There are many business questions, such as those related to workers' compensation or collecting on bad debts, that you may be tempted to grapple with on your own. For example, as a budget-minded business owner, you might cobble together contracts and other legal forms by combining your competitors' forms with blank forms you buy from office supply stores or the Internet. But without legal training, you may unwittingly end up with a contract that contains two paragraphs that seem to contradict each other, or paragraphs that don't quite relate to the matter at hand.
Then there are the small companies that don't bother with government filings and licenses, either because they are unaware of them or because they hope they can stay under the radar and not get caught. In the long run, you will probably save money by asking a lawyer who is familiar with your industry about these obligations rather than risk fines and late fees that may be imposed by government agencies.
Prepaid plans can be a practical option if you need to consult with a lawyer on a regular basis. Such plans can pay off handsomely if they are affordable enough for you to talk to a lawyer about those routine legal matters that you might typically handle yourself and later wonder if you made the right decisions.
A legal clinic that specializes in working with small businesses is another low-cost alternative to hiring an attorney. Law schools often offer such services. Typically a law student teams with a faculty member who supervises the project.
Finally, there is the Internet, that font of free advice. Most legal experts advise that you proceed with caution as you peruse Web sites. It can be a good place to familiarize yourself with legal terminology and read about how other businesses have handled problems similar to yours, but using the Internet to decide on your course of action is risky. There may be legal nuances about your case that make it different from the cases you are reading about. It usually takes a lawyer to recognize those nuances and know how to proceed.
