An accountant and a lawyer are the two professionals that a business cannot do without. Hiring an accountant is pretty obvious because someone has to take care of the accounts, review numbers periodically, and prepare all the tax accounts for the local and federal governments. However, the reason for hiring a lawyer is not always apparent unless the business gets sued.
The importance of hiring a lawyer for a business
Many businesses overlook the importance of hiring a lawyer until a sheriff is at the door serving them with summons. It is important for a business to have a lawyer before they are sued because once there is a complaint it is already too late to hire one for legal representation. Since the problem has already occurred, it will be very difficult for the lawyer to keep the business out of trouble. No business certainly wants to pay attorney’s fees, court costs, settlements, and other related expenses but it can no longer be avoided because the business is already “trapped.” Only a small fraction of the lawyer’s fees have to be paid to ensure that the business never gets into trouble with the law.
Choosing between a big and small law firm
Generally, the larger the law firm, the higher will be the retainer’s fees. While the retainer’s fees may not represent all the fees that the business will incur in a legal process, the business gains a consultant, adviser, and specialized services to avoid any legal issues. Larger law firms have many advantages. They have all the necessary legal skills under one roof. They have developed good relationships with the local, regional and national legal communities. A nasty letter from a powerful legal firm with offices in almost all the states is more intimidating than a letter from a solo practitioner.
Most large law firms have connections with other well-established law firms in the country. Their names can be used as references when seeking partnership agreements. If a fast-growing corporation wants to go public or sell out to a much larger company, the names of the lawyers are already well recognized to ensure a seamless transaction.
Types of lawyers that a business need
It is important to hire a lawyer who has specialized in business contracts. Standard form contracts can be easily prepared as well as responses to contracts that need to be signed by other people. A lawyer who is knowledgeable with business laws can decide whether a corporation is better than a limited liability company to organize the business. Even if the responsibility of filing tax returns is the task of an accountant, the lawyer can provide the necessary advice on the tax consequences of basic business transactions that the company may engage in.
It is probably time to get a lawyer for your business if you want to take care of a small issue before it becomes a big problem. Substantial sums of money can be saved by having a lawyer to take care of employer-employee relationships so that they do not result to costly disputes and negotiations.
