As we all know, running a small business can be both challenging and rewarding. Most of us are in it for just these reasons but sometimes we get in over our heads when it comes to legal matters.
It may not seem quite fair to us but the complexities of running a small business are complicated by the legal requirements that stem from taxes, incorporation, employee management, workman’s compensation, OSHA, business licenses, local ordinances, etc. These legalities must be dealt with and they must conform to existing statutes. Otherwise, we might be headed down the path to failure.
How do we know if we are meeting federal, state and local business requirements and if we are meeting all of these applicable statutes and laws? We can tackle these problems ourselves or we can seek professional advice from a qualified attorney.
Should I hire an attorney? Where do I find one? How much will it cost? Can’t I do it myself? These are all questions that we small business owners have asked ourselves at one time or another. This article deals with the answers to these questions from the viewpoint of experience.
Whether or not we plan a small business start-up or we operate an existing small business, legal issues are of major importance if we are to keep from encountering unneeded stress and undue time restraints in the future – not to mention the added expense that legal mistakes may cost us down the road.
It is indeed wise for all of we small business owners to hire an attorney to guide our business decisions and to handle the myriad of paperwork and filings that are part of a well run business. Legal issues are just too important to our success. To assume that we can handle legal issues by reading up on the law is a mistake that far too many of us experience.
A common mistake is to assume that all attorneys are just out to take our money for performing simple tasks that we could easily do ourselves. The fact is that there are plenty of attorneys who are small business owners themselves and they are very familiar with the struggles that we encounter each and every day. They have been through the same things that we are going through and their advice and guidance is well worth the fees they charge.
Finding such and attorney is not as difficult as it may seem. If you have an accountant, start there. Accountants often work very closely with attorneys and they are aware of which ones will make the best fit for your small business.
One of the best and most often overlooked resources is our local Small Business Administration (SBA) office. This government organization can be found in the local telephone book. The SBA can provide you with the names of several qualified attorneys who are familiar with small business requirements and who have the expertise to understand our special needs. Other sources include referrals from existing small business owners, the local Bar association and nearby Law Schools. Refer to the list at the bottom of this article for useful references.
Attorneys from larger firms may be able to handle your legal affairs efficiently and effectively but smaller firms that are small businesses themselves may be your best bet. Once you have the names of several attorneys, it is very important to interview them to find out if they are the right fit for your small business.
References form existing clients are very important. If the attorney is truly what they say they are, their clients will back them up and they will be happy to do so. If the attorney you are considering balks at having client referrals, simply drop he/she from your list and go on to the next attorney.
The questions to ask begin with their experience. How long have they been representing small businesses? How many small businesses do they represent? How many have failed and how many are successful? What products and/or services do they provide? What will it cost?
You should look for an attorney who has been representing small businesses for more than just a few years. Your attorney should represent no more than a handful of clients who have all been successful at businesses similar to your own. You are looking for a proactive attorney who is not overworked and who has the time to work closely with you to address the special needs of your small business.
Andrew Rothstein of the Boston law firm Cushing & Dolan says, “Business owners should choose an attorney who specializes in representing small businesses. These attorneys generally have a tremendous amount of knowledge and experience to draw upon in guiding their clients.”
The big question that we all have is the cost. The best small business attorneys will charge a flat fee to set up your small business legal administration and then charge an hourly fee for ongoing services. Depending upon the level of expertise and the location, you should expect to pay anywhere from between $3,500 and $10,000 for the initial business setup. The hourly fee should range between $100 and $300 per hour and the attorney should be able to tell you how much time any particular legal project will require before it is undertaken.
The best advise for small business owners is to definitely utilize the services of an attorney but to make sure that you have hired the right one for your particular enterprise. Take the time to research available attorneys, ask the right questions and above all talk to current clients who have been successful while using the attorney you are considering.
R.Dale Bowyer is a graduate of Oberlin College with a degree in economics and East Asian Studies. He has been involved with Internet e-commerce since 1994 when he created the National Institute of Industrial Management web site for occupational safety and health issues. Mr. Bowyer also founded LindaleUSA, a national charity helping to feed hungry children in America.
