11/ 30/ 2007
by Beth Milito
How to know when to hire legal help
How to know when to hire legal help
Hiring a lawyer can be costly for small businesses, but obtaining sound legal advice can result in huge cost savings down the line. When should small-business owners consider hiring a lawyer, and how should they go about doing it? The general rule of thumb is that it is never too early to consult with an attorney, but it can certainly be too late.
Seek help early.
Business owners can and should seek legal advice before problems arise. It's like going for a checkup at the doctor's office. A lawyer can identify potential problems with proposed business plans and help you develop strategies that will not only prevent headaches in the future, but also provide unexpected benefits.
Richard Dezio, an attorney in Alexandria, Va., who specializes in business and corporate matters, says that when it comes to business formation "there are a number of areas of concern about which an attorney can advise a client, including estate-planning issues, business succession planning and powers of attorney in the event of disability."
Dezio also points out that "many business owners haven't considered the ramifications of doing business in different jurisdictions." For instance, Dezio's clients often plan to operate in Virginia, Maryland and the District of Columbia--all of which have different filing and licensing requirements. "Usually, clients have not given much, if any, thought to a lot of these issues and are normally glad that they have considered them before they set up their company," Dezio says.
Liz Baumgart, owner of Bob's Flags in Pineville, N.C., found that consulting with an attorney when she and her husband purchased their business gave them peace of mind. "I felt we really needed to have a lawyer help us," Baumgart says. "It ensured that both parties were protected from a legal standpoint and also guaranteed that everyone was playing it straight." In addition to reviewing the sales contract, the Baumgarts' attorney also set up their limited liability company.
Practice full disclosure.
Business owners should seek immediate legal advice if they are served with a legal complaint. A lawyer can assist small businesses in responding to complaints and navigating the procedural pitfalls that accompany all lawsuits. To keep legal costs down and get better results, small businesses should stay organized and work collaboratively with their attorney.
Tim Schumann of Schumann Law Office in Milwaukee frequently represents small-business owners involved in litigation and reminds his clients that they are the gatekeepers of information.
"Lawyers provide the most effective representation when the client has provided the attorney with all the information related to the case," Schumann says. "It's important to be organized and keep good documentation, and then make sure you provide your attorney with copies of everything--don't hold back documents."
If you are involved in litigation, make a list of current telephone numbers and addresses of witnesses and interested parties, and write a clear statement of your position, including as many details as possible. Finally, Schumann advises business owners to "stay involved in the process by communicating honestly and openly with your lawyer."
Finding counsel.
Finding the right lawyer for your business is not as daunting as it might seem. Ask friends or business associates for recommendations or call your state bar association, most of which offer a lawyer referral service. These referral services help business owners determine whether their particular situations warrant hiring a lawyer and then refer them to attorneys for an initial consultation. The average cost is around $30 for a 30-minute consultation.
NFIB.com
For more information on how to find the right lawyer for your business, see the NFIB Legal Foundation's "Helpful Tips for Hiring a Lawyer" at www.NFIB.com/legal. Additionally, NFIB and Ogletree, Deakins, Nash, Smoak & Stewart, P.C., a nationally recognized labor and employment law firm, have partnered to offer a helpful benefit for NFIB members--the toll-free Employment Law Hotline. Members who need answers to basic employment law questions can call 866-678-NFIB. Please have your NFIB member ID number available when you call.
