This article should provide a small business owner with the information they need to hire the right small business lawyer for their company’s needs. Hiring the right lawyer will protect a small business both now and in the future, giving a business owner peace of mind.
Brad Nakase, Attorney
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John is the owner of a small business that sells office supplies. Recently, one of John’s employees has sued him for wrongful termination. John feels that he did the right thing in firing the employee and believes he did nothing wrong. However, John is afraid of going to court. He has heard that wrongful termination suits can result in small business owners paying hefty fines. John does not want to lose his business, the result of years of hard work. He begins to research different lawyers, looking for someone who can defend him in the wrongful termination suit. However, John is quickly overwhelmed. A simple Google search shows hundreds of lawyers, all of them specializing in different types of law. Who should John hire to represent his interests?
There are many reasons why people sue small businesses, and it is very likely that a small business owner will face a lawsuit at some point during their career. Because of this probability, it is essential that small business owners are familiar with the different types of small business lawyers that can help a business facing legal action.
While hiring a lawyer can certainly be expensive, especially for small business owners, retaining their services is crucial in the event of a lawsuit. So, while the costs may be intimidating, failing to invest in a lawyer may result in a business-ending lawsuit. And one should remember that losing a lawsuit may result in heavy fines or damages, which could be far worse an amount that any paid for a lawyer’s services.
When considering what lawyer to hire, a small business owner should ask themselves plenty of questions. The goals should be to evaluate how each lawyer has helped other similar businesses, and therefore whether they have the relevant experience to help a small business owner in a particular situation or industry.
One of the benefits of hiring an attorney for one’s small business is that the attorney can ensure that the business is operating in accordance with all laws and regulations. A business owner does not want the stress of managing legal issues all on their own, and a lawyer can help make sure that the business is in good legal standing. For example, attorneys can review contracts and documents to make sure that they are legally sound. Perhaps a business owner is about to sign a contract, thinking it is legitimate. His or her lawyer examines it and finds that it is flawed and signing it would result in legal problems down the road. In this instance, the lawyer is saving the business owner stress, time, and money.
Some lawyers are well-versed in tax issues, even if they themselves are not trained as accountants. In some cases, they have managed legal tax issues for business owners in the past and can help a small business owner avoid legal problems related to taxes. When hiring a lawyer to manage a company’s tax issues, it would be wise to have them consult with the company accountant.
Often, small business owners are not aware of the different types of lawyers available for hire. Typically, lawyers either specialize in personal law or business law. A small business owner, therefore, should look for lawyers who are trained in and practice business law. The more experienced the attorney the better. Of course, a small business should also have their budget in mind, so financially there should be a balance.
There are six main types of lawyers available for small businesses. There is no one right answer when it comes to which is best. The answer will depend on the business, its issues, and its goals.
A general business lawyer, as the name suggests, can offer legal guidance on many different subjects. The general business attorney has experience in almost every legal discipline, and therefore is familiar with a wide variety of issues that a small business may come across. If a small business is not dealing with any specific issues that require specialist knowledge, then a general business lawyer may be a wise choice. He or she can advise the business in many areas: contracts, employment, real estate, liability, etc.
If a small business owner is considering hiring a general business attorney, he or she should be prepared to ask questions about different scenarios that might come up. It is important to ask about all elements of running the business, because a general business lawyer should feel comfortable dealing with these matters. If a small business owner is concerned that a general business lawyer is not confident enough in a particular area, then he or she should consult a more specialized lawyer. For example, if the business produces and signs contracts on a regular basis, then the owner may wish to have a lawyer with particular corporate experience. Perhaps the general lawyer he is interested in is strong in most areas, but only has a basic knowledge of contracts. In this case, the small business owner would be better advised to find a lawyer who is very experienced in contracts, since this is an essential part of the business.
An employment and labor lawyer is useful for businesses that have employees because they deal with employment regulations and labor law. Therefore, if a business is composed solely of an owner or partners, there is not any reason to hire an employment and labor lawyer. However, if a small business has employees, then it must comply with federal and state labor laws. An attorney specializing in this area of law can help write employee manuals and make sure that safety standards are put in place.
Various employment issues can affect a small business, including wrongful termination, sexual harassment, and workplace discrimination. There are many more problems that can impact a business, and these matters are often too serious for a business owner to manage on his or her own. Issues such as those listed above often result in lawsuits or hefty settlements, and it is therefore advisable that a business owner hire an employment lawyer to prevent problems from spiraling into major financial losses. Essentially, an employment and labor lawyer can help keep a business protected.
Let’s say that a small business owner plans to terminate an employee. He or she can discuss the matter with their lawyer. This way, they can be prepared to handle the situation and any fallout that might occur. If a legal issue occurs, then the employment and labor lawyer can step in to represent the company in the event of a lawsuit.
On both the federal and state level, employment and labor law is often changing. However, a small business owner does not need to keep track of these changes on his or her own. A law firm can monitor these changes on behalf of the small business and make sure the company is compliant with current statutes and laws.
When a small business owner decides to buy or sell businesses, he or she will be involved in negotiating for the assets and property of those companies. These negotiations will not always be simply. It may be hard for a business owner to know what he or she is entitled to. In this situation, it is helpful to have a mergers and acquisitions (M&A) lawyer on one’s side, representing the owner’s interests during these major transactions.
A mergers and acquisitions lawyer understands the complexities associated with acquisitions and mergers, as well as the fine details of these transactions. Obviously, the opposite party in one of these negotiations will try to get the best deal that they can. A business owner needs an experienced lawyer who can argue the best deal for the business. Because M&A is a particularly difficult process, small business owners are best advised to hire an M&A lawyer for representation.
Another complex part of M&A deals is the documentation process. If a small business owner tries to handle a merger or acquisition on his or her own, it is likely that they will forget required documents or supply incorrect paperwork. Luckily, M&A attorneys know precisely what documents and filings are needed and can advise a business owner about what paperwork to provide. M&A lawyers also know a lot about the laws related to pensions and employee rights involved in deals.
However, if a deal involves intellectual property, such as an invention or trademark, then a business owner would be better advised to hire an IP lawyer, who has specialized experience in this field. Certainly, some M&A lawyers may have experience in this area, but one should not assume that every M&A lawyer does.
No one likes taxes and paying taxes for a business can get complicated very fast. Because of this, it may be wise to hire a qualified tax professional who is experienced in this area of law. One such professional would be a Certified Public Accountant (CPA), who is well-versed in helping in the event of a tax audit.
However, while a CPA can help a business in the event of an audit, a situation might arise where a tax authority chooses to take legal action against a small business. In this case, a CPA cannot help. To help with legal issues surrounding taxes, a small business would be best advised to engage the services of an experienced tax lawyer.
Sometimes, a business owner may decide not to hire a CPA, and as a result, their business faces the consequences of an audit. Or perhaps the hired CPA turned out to be unqualified or corrupt. Either of these situations could persuade the Internal Revenue Service (IRS) to take legal action against the business. In the event of a lawsuit or legal action, a small business will need to engage the services of an experienced tax lawyer.
When looking for a tax attorney, a small business owner should choose one that is experienced in dealing with tax law. This individual should be licensed to act as a lawyer. They should also have gone through training related to tax law. Ideally, they will have a master’s degree in the subject. If a business owner belongs to an association for their business or industry, they may consider asking colleagues for a tax lawyer referral.
Small companies whose business relies on trademarks and patents will likely need the services of an intellectual property (IP) lawyer. This type of attorney is qualified to deal with issues related to copyrights, patents, trademarks, and concerns about brand recognition.
An IP lawyer can also work with a business to make sure that it is not infringing intellectual property rights of other companies. In general, the average business owner does not know when he or she is violating a patent or trademark. This makes an IP attorney immensely valuable to a business with a focus on intellectual property. For these types of businesses, these lawyers can also be lifesaving. This is because IP violations often result in the highest payout for lawsuits.
Information itself may qualify as intellectual property. Often, people think they can trade information freely on the internet, and without consequence. However, these individuals often find themselves on the end of a lawsuit for sharing protected data.
For example, an individual may use the phrase “I’m lovin’ it” as a catchphrase on their online store. In this situation, the person is likely to be contacted by an IP attorney from McDonald’s, because the restaurant chain has trademarked that term and is therefore very protective of it.
It is common for business owners to use online templates to create contracts for their companies. While these contracts may turn out to be legitimate, they could still result in legal problems for the business. This is because templates will not cover specific topics related to one’s company. Also, a business owner unfamiliar with writing contracts may unintentionally pick a faulty template that leaves the business open to legal action or financial losses.
An experienced contract attorney can help a business owner produce legitimate contracts for their company. They will help ensure that contracts cover the specific provisions that a company requires. One should note that online templates often do not cover the provisions needed for most deals.
Also, using templates could limit a business by forcing it into unnecessary obligations. The typical contract contains legal language that is unfamiliar to the average person. A business owner, therefore, may not realize what obligations he or she is agreeing to by signing a certain contract. A mistake in this area could cost a business a significant amount of money and time.
Mistakes are expensive. It is important to remember that the cost of unnecessary provisions is far greater than what one would pay for a contract attorney. Businesses that rely on the use of contracts should strongly consider hiring a contract lawyer. This attorney can review contracts and ensure that the small business is represented in the event of legal issues.
The information provided above can help a small business owner decide what attorney to hire in the event of a legal proceeding. When a small business owner faces a lawsuit, he or she can use case details to figure out what kind of lawyer they will be facing in court. Educated in the subject of business lawyers, a small business owner can then choose the business lawyer best suited to the case.
Small business owners will most often face general business lawyers in court. This can be a good thing. With this type of lawyer, damages are likely to be minimal.
If a small business owner faces an employment lawyer in court, there may be more risk. States are protective of their employees, so employment lawyers are often empowered to go after businesses. These attorneys pay special attention to the changing landscape of labor law and will try to use these changes to their clients’ advantage.
Lawsuits based on intellectual property violations are not very common. However, intellectual property law is a subtle field. It is possible to violate an IP law without even knowing it.
Contract law and mergers and acquisitions (M&A) are only relevant to businesses that are involved in these areas. If a business often deals with contracts, then it is at greater risk of violating contract law. In this case, it would be wise for the owner to hire a contract lawyer to ensure the business is protected. Similarly, if a business owner is regularly buying and selling businesses, then he or she is more likely to face an M&A lawyer in a lawsuit. While it is rare to face an M&A lawyer in court, they can cause significant financial harm to a business. This is because M&A deals often involve large amounts of money. Being on the losing end of an M&A lawsuit, therefore, can cost a business owner a lot of money.
Learn more about: Business | Corporate | Employment Law
See all articles: Business | Corporate | Employment
See all articles: Business | Corporate | Employment