Startup Business Lawyer Fees and Other Legal Expenses
How much are attorney fees for startups? What are the monthly legal fees for a small business? Most small business owners believe hiring a lawyer is not worth it, they argue that it is too expensive, do you also agree with that line of thought? No matter how small or big a business is you need a business lawyer to help keep things in shape both in your presence and absence and help legalize the affairs of your business.
It is very easy to kill a business at its initial stage when it has little or no backing by a lawyer; even your competitors want you dead for their own good. Hence the need to hire a lawyer who will help stabilize things.
IMPORTANCE OF A STARTUP LAWYER
How important are lawyers for any business start-up? Most don’t recognize the big impact lawyers have on business until they test it. Selecting the right lawyer is as important as any other factor for any business setup, in fact, it can be equated to selecting a business partner and both are very important.
A good lawyer helps you deal with getting your business model, getting you an exit strategy, and linking you with the best business opportunities. Most business though makes lots of mistakes while selecting their lawyer.
In this article, we would be looking at the process of selecting a lawyer for business start-up near you, the benefits and how to go about it. And at the end, you will be set to select the best fit for your business.
Factors to Consider before Selecting a Lawyer Near You
- Industrial Experience
It is important that the person you are selecting as your lawyer has lots of business experience. Your business problem begins when your lawyer understands little or nothing about business; it becomes hard for him to coordinate the affairs of your business.
If their experience is not checked, you might end up wasting resources, time and your money, since no matter how you complain he won’t understand.
- Does He Meet your Needs?
You don’t manage, you don’t groom, No! If you will run a successful business with your lawyer, you must make sure he satisfies what your business needs. If you are forming your business, you must make sure he understands what formation of business entails.
If you will need some introduction to the business, make sure your lawyer can facilitate the medium for these introductions and is known for such among his co-workers if he does not meet the need of your business, you just can’t go on with it.
- Availability, Is He Always Available?
As much as possible, ensure that the lawyer you will be using for your start-up is readily available. Selecting a local lawyer is also very important as you will be able to meet him face to face and he will understand the local requirement of the authority around you.
There are times when urgent situations arise, the availability of your lawyer to settle the problem quickly will present your business with the success needed.
- Transparency with Money
If he can’t handle money well, he can’t handle your business well. Several financial discussions must be made for your business, especially when at the startup level. Arrangements must be made for those fees to get your business in the best and perfect way.
If your lawyer always shies away from discussing finance related issues or prefer handling those on his own without carrying you along, then you must be ready to show him the exit door. Financial information must be demanded and your lawyer must be ready to provide such information for you as soon you need them.
- Make Use of Referral
Considered by many as the best way to develop your business, referral of lawyer is very important. It is very important that a personal relationship is built with your supposed lawyer since most information to be discussed is confidential and important.
When making use of a referred lawyer, a measure of trust is built as one will believe that for him to be referred he is known to be very successful and best at what he is doing. And in fact when someone is referred then it is normal to believe that he is experienced and has a good record.
- The Financial Impact on your Business
Will hiring a lawyer to your start-up have a negative impact on the financing of your business, if yes you may need to consider other less expensive options. It is very important to go for a quality lawyer ready to dispense his service at a cheaper price.
Why Does your Start-up Need a Lawyer?
Lawyers are needed in business set up to deal with three important groups;
- The Government:Your business at the start-up needs to deal with the government to get some needed license and permission. You don’t want to go against any law set by the government, your lawyer will lawyer see to that. Your tax will also be checked by your lawyer regularly.
- Third Parties and the Public:In your start-up, you will need to contend with third parties and the general public. There is risk attached to your association with third parties and failure to understand these risks spell the end of your business. So your interaction with your users, suppliers, employers and the general public will be controlled by your lawyer.
- Interacting with other Business Partners:This is why most feel selecting a lawyer for your business is more important than the selection of business partners. When more than one person owns a business, the right of each individual must be discussed beforehand so as to avoid problems in the future. In case of disagreement, the lawyer is the first to be contacted to help provide solutions.
Your start-up is bound to be successful as long as you hire the best lawyer to help keep things in check. Make sure you don’t manage bust you find what your business need. Check the financial impact and weigh the cost. With this done, your start up is bound to stay relevant.
Choosing the Right Lawyer For Your Businesses
How would you go about finding a lawyer for your business? Hiring a business lawyer is crucial for any successful business, and yours is no exception. But how do you identify your unique business needs and how to select a lawyer for your business? Take a look at our tips below to help you identify the qualities and skills you should be looking for in your ideal business lawyer.
If you’re being sued, it’s already too late. Having a business lawyer means having someone on board with your business for a period of time, to help you handle any legal issues before they arise. If you’re already being sued, from then on it’s simply about the amount of time and money you are going to have to spend in court.
When your business is starting to grow and branch out, and reach beyond the limits of what you can control on your own, then it’s time to bring in a lawyer to help you look over the finer details and make sure everything checks out. It’s an investment, but it could save you a lot of time and money in the future.
Choose the Right Firm
Should you go with a solo lawyer, a small firm or a large firm? Without a doubt, when you’re choosing a larger firm, you’re paying for more overheads and more paychecks, so the cost is going to be higher. But if you have a large business that needs a range of lawyers with different skills behind it, then you need a larger firm.
These days each individual lawyer is quite specialized, so having just one lawyer is probably not going to cut it. If you choose a small firm, look at one that ‘thinks big’, with connections over a vast array of law specialties and a network of specialists on hand should the need for them arise.
Getting someone who is experienced, particularly in your area of business works wonders and saves you loads of time and money, because they already know exactly what you need, when, where and how.
Familiarity in an area of law that pertains to your business is a valuable resource, ensuring nothing is overlooked and you don’t get yourself into any situations you shouldn’t be in.
Find a Lawyer Who ‘Gets You’
A lawyer that understands your business sees your vision and is on your side is worth their weight in gold. You want to choose a law firm that’s willing to invest time and effort getting to know your service or product, so they can provide the right service for you. A lawyer who really shares your passion for what you’re trying to do with your business is a valuable thing because you know you can build a relationship and they’ll be looking out for you.
This is where a firm that’s on a smaller size, but still diversified, can be useful. Because they’re running a business themselves they ‘get you’ and what you’re dealing with, and will be more likely to build a personal relationship with you and the company.
Think About Value, Not Cost
It’s easy to look at the dollar value of hiring a lawyer (and perhaps suffer a shock caused by it), but this is not what you should be looking most closely at. The more important thing is are you getting value for your money.
A more reasonable business lawyer could be the perfect choice if they have plenty of industry connections and a lot of experience in your field, but if you a running a large-scale and diversified business a small firm just isn’t going to meet your needs.
Build a Relationship
Finding the right business lawyer means finding a connection on which you can build a partnership that’s mutually beneficial. Building a relationship with a law firm will make you feel more at ease as you deal with the essential legal operations of your business including marketing.
Having a lawyer that you can maintain a relationship with means there is good communication; they understand your needs and can serve you better. And that’s one of the best things you can find when choosing the right lawyer for your business.
What Factors Influence Small Business Lawyer Cost?
But how much would one need to hire a good lawyer for his business, what are the factors that affect the cost? These questions will be discussed in detail in this article.
When you ask a lawyer, how much his service will cost you, he might not give you direct answer owing to the fact that giving you a straight charging might affect him in the long run. You might present him with a straightforward case in the first instance, but with the arrival of complications, what seems simple might become complex and thus he will fall on the losing side.
The time a certain case might take will definitely be different from other cases, this can influence the cost of the lawyer. Most charge between US$200 to US$400 per hour, so you don’t judge them based on the weight of the project, instead, charges are based on the hours spent on those projects.
- Business Structure
The structure of a business is another factor that influences what the cost of a lawyer will be. If your business is planned and structured in the best and right way, the lawyer will have little to do to drive your business to a successful end. But with a staggering setup, it will cost you more to hire a professional lawyer.
- Level of the Lawyer
There are variations in price or the cost of the lawyer you will be using for your business due to the difference in their level. A junior lawyer can take US$150 per hour based on the fact that he might probably have fewer jobs or he is still looking for clients.
On the other hand, a senior lawyer can take as much as US$1,000 per hour for the same project even there might be no visible difference in their services or delivery.
- The Severity of the Project
There is a level of seriousness and severity of each case to be dealt with by a lawyer for your small business. This will influence the increment in the cost of their services, some issues that might be categorized under this include:
- Becoming sued by an employer (Finance related, hiring and firing etc.)
- Environmental happening involving your business.
- Complaint by the government against your business.
- Problem with other big business.
- Discussion on selling of your business.
- Determination of an exit strategy.
All this are severe cases that will take longer time and more expertise to solve, a junior lawyer might have his cost increased to between US$200 – US$400, while a senior lawyer might increase his from US$1,000 to US$1,500 or more.
How do Lawyers get paid for their Services?
Lawyers work mostly on two types of payment, the flat fee for a single service or you may be charged per hour of service. Each with its distinctive characteristic can actively influence what the cost for a small business lawyer might be. What does each pricing system involve? Here is a breakdown.
What are Hourly Fees Work?
How much do companies spend on legal fees? Most lawyers’ use this method to charge their clients, and most charge between US$150 and US$350 per hour based on their location, while other in some developed country offers something better. There might be a sharp difference in their charges.
This method involves paying your after every job completion for the day or accumulating the number of hours spent on several cases till the end of the month when you get paid.
What is a Flat Fee?
This is another method of payment where the estimate is done before hands. The price here might vary depending on the type of task to be done and how they will be quantified. But when a payment is talking about flat rates, it is mostly pre-arranged by both parties.
Most don’t like this method owing to the fact that it makes them spend more and you get to pay the lawyer whether he executes some project in the month or not.
It is obvious that the survival of your business is dependent on several factors that can actively help to reduce the forces of the eternal bodies trying to bring it down. It is very important to hire a skilled lawyer at the beginning of your business to help with all legal issues.
As discussed earlier, the price for a junior lawyer might be very cheap due to lack of experience or he is not conversant with the pricing process he will usually charge between US150 to US$300 per hour. On the other hand, the pricing by an experienced senior lawyer might range between US$1,000 to US$1,500.