Starting and Managing a Business From Your Home

Your Lawyer

A lawyer can help you decide which is the most advantageous business structure (sole proprietorship, partnership, or corporation). He or she can help you with zoning, permit, or licensing problems; health inspection problems; unpaid bills; contracts and agreements; patents, trademarks, copyright protection; and some tax problems. Because there is always the possibility of a lawsuit, claim, or other legal action against your business, it is wise to have a lawyer who is already familiar with your business before a crisis arises. A lawyer experienced with your type of venture should also advise you on laws, programs, and agencies--(federal, state, and local)--that help small businesses through loans, grants, procurement set-asides, counseling, and other ways. He or she will tell you about unexpected legal opportunities and pitfalls that may affect your business.

In choosing a lawyer, experience and fee should be related. One lawyer may charge an hourly rate that, at first, looks cheaper than another lawyer's. However, because of a lack of experience in some area, the less expensive lawyer may charge a larger fee in the long run. Ask for a resume and check references. If you feel overwhelmed, take a trusted friend to the initial meeting to help you keep on track as you interview the lawyer about services and fees.

If you retain a law firm, be sure you understand who will work on your case and who will supervise the work. If junior lawyers handle your work, the fees should be lower. That's fine as long as you know an experienced attorney will be reviewing the case periodically.

Let your lawyer know that you expect to be informed of all developments and consulted before any decisions are made. You may also want to receive copies of all documents, letters, and memos written and received in your case or have a chance to read them in the lawyer's office.

Ask the attorney to estimate the timetable and costs of your work. You may wish to place a periodic ceiling on fees, after which he or she would call you before proceeding to do work that would add to your bill. Always have a written retainer agreement, describing just what you and the lawyer expect of each other.