Do I Need a Business Lawyer?
Find out when you can do it yourself -- and when you should call in an expert.
For most businesspeople, deciding whether to call a lawyer should be like deciding whether to go to the doctor. If you have severe chest pain, odds are you're not going to hesitate to call your physician or hightail it to the emergency room. But if you just have a bad cold, you might wait a few days to see if it turns into pneumonia before you drag yourself to the dreaded doctor's office.
Likewise, you should call a lawyer when you have a serious legal problem -- for instance, you're being investigated for securities fraud by the SEC or a customer is severely injured by one of your products.
But in other instances it might not be so clear. For instance, do you need a lawyer when you're starting a business? Dissolving one? Buying or selling a business? Hiring high-level employees? Since legalities seem to pervade even the most basic business decisions -- and lawyers have helped this perception along -- you might be afraid to tackle a "legal" issue without a lawyer. Or, on the flip side, you might have had a bad experience with a lawyer that was enough to put you off them forever, no matter what the cost.
If you're the "always need a lawyer" type, there is actually a lot you can start to do for yourself. But if you're the "no lawyers for me, thanks" type, it's important to recognize when you're in over your head and need the help of a competent lawyer.
When You Probably Need an Attorney
There are a few situations when you'll want or need the advice of a good small-business attorney. Here are just a few examples of serious legal issues that require the help of an experienced lawyer:
- You and your business partners want to make so-called "special allocations" of profits and losses in your partnership agreement or LLC operating agreement (this is a tricky area that needs the help of an experienced tax attorney).
- You and/or your business partners want to contribute appreciated property to a partnership or LLC (this also requires the assistance of an experienced tax attorney).
- You're buying a business and a major environmental issue comes up (environmental protection laws carry heavy penalties for landowners, even for those who didn't cause the contamination).
- An employee or former employee threatens to sue your business for discrimination or one of your managers for sexual harassment.
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Copyright 2006 Nolo
