Hiring a business lawyer for your start-up?An entrepreneur’s guide

For upon |No matter the size of your start-up or the nature of your business, there are two people you won’t be able to do without – even before Day One.  First, an accountant to ensure your tax affairs are in order and to advise whether you have adequate finance or need to source additional funding.

Equally important is finding the right lawyer to protect your interests and advise you on areas of the law you may not be familiar with –leases, partnerships, regulatory requirements, and employment. This may not be a single individual, as choosing a firm you trust, with several different specialists, can be a logical choice.

Here are some of the factors to consider before hiring your first business lawyer.

Take your time to do your research

While nothing beats a great reference provided by someone you can trust, it’s still worth digging a little further when you receive a referral. If you’re hiring an employee, it’s unlikely that you’d employ someone just based on a recommendation.

In addition to Google searches, go to sites such as Top Researched and Linkedin to check out bios and get an idea of their areas of specialization and professional history. Look for experience in corporate and commercial law, and perhaps intellectual property. If possible, identify their clients via reviews and testimonials, but beware, as even lawyers are not above creating imaginary clients who’ll praise them to the skies!

Arrange an initial meeting

This should be free of cost and is a great opportunity for you to decide whether the lawyer or the firm feels like a good fit for your business. It’s an opportunity to get to understand their philosophy, but also ensure that you get to meet the person with whom you’ll actually be in most contact. Will you be working with a senior partner, or a junior who’s still learning the ropes?

It’s also essential to know how much work they’ve done with start-ups, as opposed to more stable, established businesses. What specialized support can they provide to someone in your position?

Finally, how transparent are they about their fee structure? Do they charge by the hour, is there a flat fee per assignment, or a monthly retainer?  Do they charge for phone calls and if yes, how much? How well will that meet your needs? Are they willing to negotiate a lower rate, at least for an initial period –especially if they’re assigning you someone with less experience to work with? Ask for a schedule of their charges in writing for later reference.

By the end of the meeting, you should have a good idea of how well they’ll fit. However, avoid making a too-rapid decision, and make it clear that you’ll need time to consider.  Compare with the other potential business lawyers you’re considering.

Hopefully, by taking your time, choosing a lawyer with the right expertise at a cost you can afford will pay dividends in the long run, as the advice they can provide will help you avoid legal risks and maximize the benefit of business opportunities that come your way.