by Barbara A. Frantz, Attorney at Law
Some entrepreneurs wait until they have a legal problem before consulting an attorney. Others make an attorney part of their business team, just like their accountant, banker and marketing and sales force. Analyzing the legal costs over a five year period for companies who use attorneys preventively, shows a dramatic savings. The faster your business grows, the more likely you will need legal counsel to protect the wealth that you are building through your business.
Here are some guidelines for when you should hire an attorney:
• A regulatory agency (such as the Health Department) contacts you.
• You are going to sign your first big contract.
• You buy or lease your first office space.
• Someone wants to invest in your company.
• You're not sure about your insurance needs.
• You want to standardize your contracts.
• You are sued or are thinking of suing someone.
• You want to patent, trademark or copyright something.
• You're designing your employee policies and procedures manual.
• You plan to export products or set up offices outside your home state.
• New legislation is adopted that you think might have an effect on your business.
Look for an attorney that you feel comfortable with who emphasizes "business transactional law" or who calls him or herself a business and corporate lawyer. Some attorneys who call themselves corporate lawyers only specialize in "securities" (stock investments in corporations). For the most part, you will be paying an unnecessary premium for their expertise on your simple business matters. Do not be afraid to have several attorneys for different needs.
Whether you make an attorney part of your team or wait until you have a specific legal problem, you must set aside money for legal fees from every item you sell, or service you provide. That money may ultimately be used for your company's expansion, or to pay a small claims court judgment instead of lawyers' fees, but it should be budgeted. The type of business that you have and where you are located (Large city attorneys charge more than in suburban or rural areas) determines how much you set aside. A good rule of thumb is 1-1.5% of the retail price or hourly rate that you charge.
Finally, if you develop a relationship with an attorney before you need one, you will have the opportunity to share your business goals, your philosophy, and some company information that will allow them to do a better job for you.
So, when you are faced with a situation that fits the need for an attorney call Barbara A. Frantz of Alvis Frantz and Associates PLC
(925) 516-1617 email: info@alvisfrantzlaw.com or for more information visit: http://www.alvisfrantzlaw.com/
Disclaimer: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
