Choosing a lawyer for your small business is a pivotal decision that can greatly impact your future success. Ideally, this relationship evolves into a mutually beneficial partnership, providing you with a trusted advisor who ensures your business thrives. Imagine having the confidence to seek guidance whenever uncertainty arises, knowing your lawyer is steadfastly looking out for your best interests. When conflicts inevitably arise, envision candid conversations that swiftly resolve issues, leaving you more confident in facing whatever challenges come your way.
This dynamic doesn’t develop overnight, but the rewards are immense once established. Here are some actionable tips to guide you in fostering such a relationship with a small business lawyer:
Start Developing the Relationship Before You Need an Attorney
Before the need for legal counsel becomes urgent, begin cultivating a relationship with a lawyer. As your business expands and risks increase, having a trusted advisor in place becomes invaluable. Attorneys skilled in risk assessment can identify potential threats to your business and help mitigate their impact.
Look for Attorneys with Flexible Payment Arrangements
Opt for lawyers who offer flexible payment options tailored to your business’s needs. Instead of committing substantial funds to retainers, explore arrangements where you pay for consultations as needed. For long-term projects like litigation, negotiate hourly rates, while flat fees might be suitable for shorter tasks like document drafting.
Use Legal Document Providers Only Where They Make Sense for You
While large-scale legal services have their place, exercise caution and seek personalized advice, especially if you’re a first-time business owner. Standard contracts may not adequately address your specific circumstances, potentially leading to costly errors such as misclassification of workers. Investing in tailored legal guidance can prevent financial setbacks down the line.
I often negotiate reductions in penalties assessed against small businesses who, for example, purchased “standard contracts” for independent contractor relationships and didn’t know there is a very narrow definition of an independent contractor in New York State. These businesses unintentionally misclassified their workers.
This caused them to make other costly errors, such as failing to:
- Secure workers’ compensation, disability and Paid Family Leave insurance
- Pay overtime wages or mandatory sick pay
- Comply with the Freelance Isn’t Free Act
The money they thought they were saving quickly disappeared.
Use Clinics When You Can
Take advantage of low-cost or free legal clinics offered by law schools, bar associations, or small business centers. These resources provide valuable guidance, particularly for entrepreneurs operating on a tight budget.
Know the Rates for Your Market
The rates of attorneys charging by the hour vary greatly. In small towns or mid-sized cities, attorneys might charge $200.00 to $300.00 per hour. Attorneys who operate in metropolitan areas might charge $450.00 per hour and up. In Manhattan, prices can be far higher.
All attorneys practicing in the state in which you are operating have met the same criteria for licensure. They swore to uphold the same laws. Shop around for someone who can provide the services you need within the budget you have.
Don’t Forget Your Interviewing and Screening Skills
During initial consultations, assess whether a lawyer aligns with your business needs. Effective communication, plain language explanations, and a genuine interest in understanding your concerns are key indicators of a suitable fit. If doubts persist, continue your search until you find the right match.
Remember, selecting the right lawyer is an investment in your business’s future. By prioritizing compatibility, communication, and expertise, you can forge a lasting partnership that ensures your small business thrives in the long run.
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