|
Monday, March 20, 2000
Choosing and Using an Attorney Wisely
by Kurt English
Good legal support is important and necessary for any home business, but you must keep a close eye on costs. This article gives you key tips for choosing and using an attorney in your home business.
Choosing an Attorney
Your relationship with your company's attorney is similar to the relationships you establish with your customers, vendors, employees and service providers. By nurturing and strengthening these relationships, you can change the level of service you receive.
Your attorney should be someone with whom you can communicate. It should be someone who can understand your problems. All other things being equal, I believe that attorneys with business experience provide better business advice. Meet the attorney before you make a selection. Take the time to get acquainted. Ask people for referrals.
There are dozens of specialties in the law. Business lawyers negotiate, review and write contracts, and help clients establish partnerships and corporations. Patent lawyers help you to protect your inventions. Estate planning lawyers help you protect your home business from the government and preserve your privacy. Select a lawyer who is an expert in the area you need assistance.
Legal Fees
Legal fees can be charged by the hour, by fixed price, or based upon a percentage of a judgment which is called a contingent fee. A wrongful death or severe injury lawsuit where you or your family are suing the wrongdoer would be a candidate for a contingent arrangement.
Attorneys handling home business matters are likely to charge either a fixed price for a fixed amount of work, or an hourly rate. Many attorneys are hesitant to charge a fixed fee for any matter that isn't routine. For example, some attorneys charge a fixed fee to incorporate a company. But, in my experience, most legal fees are charged by the hour for work on business matters. Examples of this kind of work include negotiating contracts with employees, contractors, and suppliers, drafting written terms of sale for your invoices and purchase orders, or sending letters to people with whom you're having a dispute.
Use a Written Agreement With Your Lawyer
Most ethical lawyers do business with their clients in writing. The contract they use between their law firm and the client (you) is called a retainer agreement. Lawyers will bill by the hour against the retainer fee in this arrangement. If you're uncomfortable with the terms of the agreement, shop around or get a second opinion. Over time, if you have a good enough relationship with your lawyer, he or she may be more lenient about getting money from you in advance, or about replenishing the retainer fee when it is used.
In California, you have a right to terminate an attorney-client relationship at any time. But you're still liable for the bill up to that point. Other states may differ.
Ongoing Use of an Attorney
Be prepared when you bring an issue about your home business to an attorney. Describe in writing the legal services you desire. Before you meet with an attorney, research all background information and do as much preparatory work as possible on your own to minimize costs. Gather up documentation and contact information.
It is risky to sign any important contract without having an attorney with expertise in the appropriate area give it at least a cursory review. Be careful using preprinted forms. You don't know how good or how up to date the forms might be, or the exact purposes for which they were prepared.
Conclusion
In choosing an attorney for your home business, treat the decision like any other business relationship. Seek to make it a long term relationship. Choose your attorney(s) with care and educate yourself.
DISCLAIMER: This article is a general commentary, and is not intended to provide legal advice. An attorney familiar with your specific business can provide you advice tailored to addressing your specific issues. Each state licenses attorneys to practice law in that state.
Mr. Kurt English is the legal editor for HBM.
Full Author Profile -->
|
PRINT THIS
