Working With a Business Lawyer
By Angela M. Russell, Attorney at Law
Originally published on www.mamapreneursinc.com (now The Power MOB) in 2008
It is said, “Wisdom is learning from your mistakes. True wisdom is learning from someone else's mistakes.” Often a business person’s perception of lawyers is that lawyers correct mistakes. However business lawyers see themselves preventing mistakes. Having a business lawyer is like performing routine maintenance on your car. The goal is to catch issues when they are small and easily corrected.
My first tip on working with a business lawyer is to find someone you trust. You want someone whose advice you want and are willing to follow. You should interview a few lawyers before hiring one. As when you are hiring employees, good qualifications do not necessarily mean that the lawyer will be a good fit for you. Look for someone with whom you can establish a long-term relationship. As a part of building trust, make sure you understand the lawyer’s fee structure and billing practices. Do not be shy about talking to your lawyer about payment arrangements. Make sure you are comfortable asking lots of questions.
Second, do not be afraid to work with your business lawyer. My grandmother used to say, “an ounce of prevention is worth a pound of cure.” Ask your lawyer to train you on common legal issues. For example, have your lawyer provide some training and general advice on common employment issues if you have employees. When setting up your billing practices, get some advice. Your lawyer can help put systems in place to minimize legal issues. If you draft agreements yourself, have your lawyer review them. If you are considering a change, again ask for some general advice from your lawyer. If you are having minor problems, get advice on how to correct the issues before they become big problems and big legal bills. Taking small steps early can help avoid costly problems later.
Third, remember your business lawyer is part of your team. Keep your business lawyer up to date on what is going on in your business. Most business lawyers enjoy seeing their clients succeed. In addition, it allows the lawyer to raise possible issues that you may never think of. For example as your business grows and you hire more employees, different federal laws may become relevant. Another example would be if you open an additional location in Vancouver, your lawyer could make sure you knew that it is necessary both to file a master business application with the Department of Licensing and an application for authority with the Secretary of State.
If you are still in the planning stages of your business, consider getting an hour or two of preventative legal advice. Ask for information on common mistakes that new businesses make and how to avoid them.
The goal of a business lawyer is to keep clients out of legal trouble. You will get out of your relationship with your business lawyer what you put into it. If you are willing to be proactive on legal issues, working with a business lawyer can immensely benefit you and your business.
Circular 230 Disclaimer: If any portion of this communication is interpreted as providing federal tax advice, Treasury Regulations require that we inform you that we neither intended nor wrote this communication for you to use in avoiding federal tax penalties that the IRS may attempt to impose and that you may not use it for such purpose.
