Each week as @Smallbizlady, I conduct interviews with small business experts on my weekly Twitter talk show #SmallBizChat. This is excerpted from my #SmallBizChat interview with @Corpnet Philip Akalp who is Founder and CEO of www.CorpNet.com. Philip is a trained lawyer who created his first business MyCorporation.com in 1997, which was acquired by Intuit after forming over 100,000 small businesses and LLCs. Today, through CorpNet.com, he helps small business owners incorporate, form an LLC, and maintain corporate compliance. *Legal Disclosure and Disclaimer Below.
Smallbizlady: How should a small business owner hire a business lawyer?
Philip Akalp: For most small business owners, “Budget” is the first concern. Obviously, we’d all prefer to hire the toughest law firm, equipped to handle any kind of case or transaction, staffed with a team of attorneys that will respond to our needs immediately. Most start-up small businesses, however, can’t afford this “full-time legal dream-team.” So, I suggest hiring a lawyer who is experienced in business matters, local to your business, with affordable legal rates.
Smallbizlady: What kinds of things should a lawyer do for my small business?
Philip Akalp: The key is to at least have a relationship with a business lawyer BEFORE you get sued. An attorney experienced in small business matters should be able to assist you with things like selecting a business structure (i.e. incorporating or forming an LLC), executing a lease for office space, hiring and firing employees, registering your trademark, etc.
Smallbizlady: What is the best way to find a business lawyer?
Philip Akalp: Ask your friends or relatives for references of any good lawyers in your immediate geographical area so their office is easily accessible. Your lawyer should have enough business and legal experience to handle your routine work and to represent you effectively in case of any legal problems.
Many lawyers specialize in different aspects of business. Try to find an attorney with experience in your specific area of business. He or she should have the ability to solve problems quickly to avoid excessive fees.
Smallbizlady: How much should a small business owner expect to pay for a lawyer?
Philip Akalp: Some entry-level solo practitioners will make themselves available to you (“on-call”) for a small retainer (deposit), usually about $1,000. Their hourly rates may range from $125/hour and up. A larger law firm, on the other hand, will require a more substantial retainer ($5,000 and up depending on your relationship, size of business, and other factors) and may charge between $300/hour to $700/hour and up. When meeting with your lawyer, whether in person or over the telephone, be sure to have all of the required documents and talking points ready to go. Most attorneys charge in 6-minute increments. An attorney’s most valuable asset is his/her time.
Smallbizlady: Should I hire an attorney from a big firm or small firm?
Philip Akalp: This decision depends on your specific budget and the complexity of your business. For most small business owners, a small firm or individual practitioner is the best solution. A large law firm will be more expensive. However, all the legal skills necessary to help your business may be “under one roof.” In addition, and this is from my personal experience, a “cease and desist” letter from a “powerhouse” law firm often carries a much greater impact and generates a much quicker response than a letter from an unknown practitioner.
Smallbizlady: What sort of qualifications or expertise should a small business lawyer possess?
Philip Akalp: An attorney, licensed in your state that has a broad base of experience in real-life business matters, is the ideal candidate. Equally important is a good reputation in the business and legal community. I’d want my attorney to be experienced:
General and Commercial Contract Law
- Organizing and forming businesses
- Commercial leasing
- Intellectual property
- Some small business tax and licensing experience
Smallbizlady: Where should I start looking if I want to hire a small business lawyer?
Philip Akalp: First, I’d talk to friends and other local business owners. Getting a referral will help with the “Trust” factor and save you a lot of time in shopping for an attorney. The next option is to try the local chamber of commerce or a small business development center to get a referral. If you still come up dry, I’d research attorneys and their profiles in your local area via your state bar website or the American Bar Association.
Smallbizlady: If I decide to hire a lawyer, what should I expect out of the relationship?
Philip Akalp: Expect definite, honest answers and legal opinions to your questions or issues. Expect a clear explanation of the reasons why a certain course of action may be best for you. Expect to be fully informed and thus, hopefully, make informed business decisions based on your attorney’s advice.
Also, expect to be billed for every meeting, every phone call, and every email correspondence.
Smallbizlady: How should you handle a lawyer who gives unsolicited business advice?
Philip Akalp: The key is to be able to differentiate “business” advice from “legal” advice. Be wary of an attorney who tries to second-guess your business judgment. Hopefully, you’ll find an attorney who can focus on being an attorney.
Smallbizlady: How well should my lawyer communicate with me?
Philip Akalp: The best business lawyers are those that can communicate clearly about your legal options. You need to understand the different laws that apply to your situation given a specific set of facts. Don’t settle for a simple “yes’ or “no” answer. The legal field is a customer service business, and a good attorney will outline your available options and recommend a course of action in a way that you can understand.
Smallbizlady: Should my lawyer’s office be conveniently located?
Philip Akalp: A lot can be handled over the telephone or via email. However, when dealing in the small business context, I found that it’s best to have an attorney close to your business location.
Smallbizlady: Do I need to like my business attorney?
Philip Akalp: “Liking” your attorney is always a bonus; you should be able to openly and honestly speak with this person. Follow your instincts and feelings when deciding on who to retain as your attorney.
*Legal Disclosure and Disclaimer: Philip K. Akalp is a licensed attorney only in the state of California (Cal. Bar No. 197982). The discussions herein are NOT intended as a substitute for legal advice as they are NOT tailored for your specific legal issues or concerns. All responses are intended to serve as a “generalized discussion.” For “legal advice,” please contact an attorney licensed in your jurisdiction.
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For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at www.succeedasyourownboss.com.
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