Why Every Small Business Should Have a Lawyer

24 Jul Why Every Small Business Should Have a Lawyer

If you have the guts to start your own business, take the smart next step and hire a lawyer.  A business lawyer will save time, energy and money that you’ll need in order to run the company. As the owner, your main focus should be ensuring the loyalty of your partners, employees and customers not memorizing “Law for Dummies.”

Forbes.com recommends that you retain a lawyer to ensure your professional activities are executed correctly. Here are three areas that a lawyer can make all the difference in your business.

Obey and Pay

Steve Kaplan, a Virginia based start-up lawyer, reminds business owners that an attorney can help you stick to the law and pay the right taxes at the right time.  He or she can also pave the way for incorporating your business and raising capital.  Save money by filling out your own forms from a site like LegalZoom, but your lawyer is the best resource for identifying which documents to download.

Hire, Fire, Collaborate

Right from the beginning, it’s important to protect your small business from frivolous lawsuits.  A lawyer can help control the risk of working with customers, suppliers and your staff.  Developing clear written contracts with these groups is a must no matter the size of your business.

Keep Everyone Honest

Trust is a beautiful thing, and if all goes well, you’ll never have to dust off the contract you made everyone sign. However, it’s always a good idea to have expectations, ownership and equity rights in black and white.  There are too many businesses–Facebook comes to mind–where ownership became convoluted when they started to turn a profit.

The cost of hiring a lawyer at the beginning stages of your business creation will vary, but I recommend budgeting at least $2,000 to $5,000 for drafting or reviewing of documents, website review and general business questions. The money you spend will make all the difference as you grow.

If you can’t afford to make the investment now, connect with your local SBA office. They may be able to provide you with a lawyer pro-bono, depending on your specific company needs.

What business items could a lawyer help you with?