When Do You Need a Lawyer?
Hey there, fellow entrepreneurs. Today we're diving into a topic that's absolutely crucial for every business owner: knowing when to bring in the legal experts.
I love educating myself and learning all aspects of business, but at a certain point you may be putting yourself at risk if you don’t delegate to an expert. Trust me when I say that knowing when to tap into legal expertise can make or break your business. And when I saw my business FUBU turn from an idea then into a reality and then into a huge brand bringing in $350 million a year in revenue – I definitely needed attorneys to help navigate these waters. This team of attorneys helped me out with problems in my business that I didn’t even know were problems. And not only would they help me take these tasks off my plate, but they also leveraged their knowledge from practicing law for so long to give comparable deal structures – so I knew I was making good deals.
One area where I leaned into my team of attorneys in particular for me was dealing with counterfeit products – and probably not for the reason you’re thinking. You see, when FUBU was really at the top of its game and pulling in a lot of revenue, of course there were some people making fake, shoddy FUBU product and selling it for much, much cheaper than it would typically cost a customer. As a business owner that had worked extremely hard to launch FUBU out of my mother’s home, had countless sleepless nights in front of a sewing stream, and had really risked it all to make my business a reality – I took the counterfeit product personally and wanted to completely stop them. And I spent a ton of time and money obsessively trying to do this. While we had some initial success shutting down some of our biggest counterfeiters, there were still a lot of people selling fake FUBU.
Even though I was completely right that people were illegally using my trademark, it was because of conversations with my legal team that I had to recognize that I probably wasn’t going to 100% stop counterfeit clothing and instead I had to focus on what was achievable. Instead of going all in and trying to completely stop this illegal activity, we made a plan to stop what we could, still fight back too, but not keep throwing money, time, and resources away against an unwinnable battle.
Who would’ve thought that a lawyer would tell you that the law can only go so far before you chalk it up to a part of business. This really cleared my head on the problem, and allowed me to get back to focusing on the areas of the business that I could have an impact on.
But don’t be like me in my early days. Here are some key situations where you should definitely consider bringing in a lawyer:
These first few may seem like no brainers. They are Business Formation and Structure, Drafting and Reviewing Contracts, and Dispute Resolution and Litigation.
With business formation, a lawyer can help you determine if a limited liability company, partnership, or corporation is the best structure for your company and guide you through the pros and cons for each. For example, you’ll want to understand the legal implications and tax consequences of each option, as well as what state is best to incorporate in. The pros at Rocket Lawyer can help you with all of that.
Then there’s contracts, which are the lifeblood of business. But a bad one? That's a time bomb waiting to go off. Use Rocket Lawyer to draft unlimited legally binding contracts. Then have one of their attorneys review them to make sure they are legally sound, protect your interests, and minimize potential risks. Plus, they’ll bring their broader knowledge and experience to the contract. For example, they will know whether or not to seek things like indemnification or limitations on liability to protect you against potential scenarios you never would have thought of.
Now we get to litigation, which is not something to try and navigate on your own. Disagreements will unfortunately happen, especially in business. It’s always the goal to keep disagreements from escalating. But in the event they don’t, you want a lawyer in your corner to provide advice on potential resolutions, negotiate settlements, or represent your interests in court if necessary.
The next two situations fall into the financial category. They are Taxes and Bankruptcy & Debt Management.
Taxes. Just the word can give you a headache. But with a lawyer, you can navigate the tax maze, ensuring you save where you can and comply where you must. An attorney well-versed in business taxation can help you navigate tax planning, deductions, credits, and compliance - helping to minimize your tax liability. And if you get into tax trouble, they can help you there too. They can even assist with filing for non-profit status at a state and/or federal level.
Then you’ve got bankruptcy and debt. Two more words we never want to hear, but the reality is that tough times hit even the best of us. If you're facing financial storms, a lawyer can be your anchor, guiding you to calmer waters. An attorney can help you make smart decisions about restructuring, bankruptcy, or negotiations with creditors.
The five remaining situations are each very different, but all equally as important to navigate carefully with the help of a Rocket Lawyer network attorney. So, let’s go one by one.
First is Intellectual Property Protection. Got a killer product, unique process to do something, or a brand that everyone loves? Make sure you protect it! From trademarks to copyrights to patents, a lawyer ensures your hard work doesn't get ripped off. Your brand and ideas are your gold and protecting them is crucial for maintaining a competitive edge. An attorney will help you register, enforce, and defend against infringement by helping you lock down your intellectual property and keep your business ahead of the pack.
Next is Employment Law and HR Issues. I’ve been managing a team for decades, so I know that navigating the HR maze can be tricky. And trust me, you don't want to trip up here. This includes matters related to hiring, firing, workplace policies, discrimination, harassment, wage and hour compliance, and other HR-related legal matters. While technically separate, Workers Compensation is another practice area that an attorney could help out with. A lawyer can be your GPS through this terrain, keeping you compliant and your team thriving.
After that is Commercial Leases and Real Estate. Whether you're setting up shop or expanding, the right space matters. But lease agreements are not always straightforward. They can be complex and confusing. Negotiating and understanding commercial leases, purchasing or selling property, and handling zoning or land use issues require legal expertise. Get a lawyer to decode the fine print and to bring their experience to the table.
Number four on this list is Regulatory Compliance. Every industry has its rules. And playing by them is non-negotiable. A lawyer ensures you're always on the right side of the line and that your business meets all those industry-specific regulations - like licensing, permits, and compliance with local, state, and federal laws. You not only need to know all the regulations already in place, but in many industries, these laws change often. So having an attorney that stays on top of all these changes is essential.
And finally, we have Exit Strategies and Succession Planning. Every journey has an end. Whether you're passing the torch or selling your legacy, a lawyer can help you navigate the legal aspects of the transition, and make sure you get the best deal
Now, I know lawyers can be pricey. But think of them as an investment, not an expense. Work with an attorney from the beginning to make sure everything is properly set up and you have the right legal foundation.
That’s where Rocket Lawyer comes in. They're a game-changer, offering affordable legal services tailored for us - the hustlers, the dreamers, the entrepreneurs. A Rocket Legal+ membership gives you access to a network of attorneys for personalized help and with up to half off savings on fees. They’ll answer your legal questions, review contracts, and advise you on any legal dispute you may face.
Don’t wait. Take that next step and try Rocket Legal+ with a free 7-day trial. Your business deserves it.
