By: Peter J. Lamont, Esq.
For most business owners they would rather go to the dentist than hire an attorney. Attorneys have the dubious reputation as being "blood suckers", deal breakers and opportunists. Additionally, many business owners would rather use the "do it yourself" method when it comes to legal issues in order to cut costs on what they view as non-essential expenses. Unfortunately, many "do it yourselfers" ultimately end up having to hire a lawyer to deal with a lawsuit concerning one of their homemade contracts or other "legal documents" which they created with the help of legal software or the Internet. Typically, businesses wait to retain an attorney until they are in trouble end up paying through the nose for legal services. Additionally, because of time constraints they do not research the attorney but rather rely upon the recommendation of their know-it-all brother-in-law, their favorite bank teller, their priest or landscaper. So, what is a cost conscience business owner to do? Does a business need an attorney and if so, when?
First, we need to determine whether you need an attorney. The short answer is "yes." There are two professionals every business will need early on: an accountant and a lawyer. The reasons for hiring an accountant are obvious. However, the reason for hiring a qualified business attorney may not be so apparent. A good business attorney will provide vital assistance in almost every aspect of your business, from contract creation, review and negotiation, back office support, and litigation prevention to employment issues, licensing compliance, copyright and trademark issues and lawsuits and liability.
There is no substitute for a good lawyer. No computer software or Internet site can provide you with the knowledge, skill and experience that can be provided by a qualified attorney. After all, you would not want a nurse performing major surgery on you, would you?
The time to hire a lawyer is when you do not necessarily need one. If you wait until you need one, then something went wrong that a qualified lawyer might have been able to insulate you from. Now you have to deal with litigation expenses which could range from $15,000 to above $50,000. Clearly, when it comes to your business the old adage, an ounce of prevention is worth a pound of cure, is highly applicable.
When you decide to hire an attorney, make sure that he or she has experience in the design/construction industry. It is critical that you find an attorney who is well versed in your industry. It does no good to hire an attorney for your design business who specializes in insurance law only. A qualified business attorney should be able to provide you with counsel on every aspect of your business. Shop around until you find the right match. It is important to note that many attorneys who specialize in the design/construction industry are with small to mid-size law firms. Their rates will be significantly lower than mega firms.
Ok, so you decided to hire an attorney - but what do you need him for? It is not necessary for an attorney to be involved with every aspect of your business. In fact, there are a good amount of things that you can do on your own. For example, if you are willing to put in the time, you can register and set up your business with your state without an attorney. Most state website provide you with step-by-step directions concerning starting a business and obtaining a tax identification number.
You can create store policies, selling guidelines, sales training programs, forms for your employees, office procedures, as well as negotiate with new vendors, suppliers, and partners. However, you should use an attorney to create, review and/or handle the following: your contracts and purchase orders; employee manuals, collection letters and guidelines, leases; subcontracts, state licensing, contractor registration and licensing, litigation prevention plans and procedures, trademark and copyright registration, insurance issues, sexual harassment policies and employee training. This is certainly not an exhaustive list, but it should give you a good idea of what aspects of your business should be handled by an attorney. Of course, all liens, arbitrations, mediations and lawsuits should be handled exclusively by an attorney.
For example, a qualified attorney can create a set of form contracts and documents for you which could help eliminate contract litigation. You could pay an attorney a reasonable fee to create your contracts and be insulated from lawsuits or you could draft the contract yourself and end up litigating, at high cost both in time and money to you, with numerous customers over unclear, unenforceable, and/or ambiguous contract terms.
Retaining the right attorney for the right tasks can end up saving you thousands in litigation costs.
