Do I Need a Business Lawyer?

Common times to talk to a business attorney include buying, selling, or managing a company; buying or leasing commercial space; and hiring or firing employees. Read on to learn what business lawyers do, when you might need one, and what to expect when you work with one.

What does a business lawyer or corporate lawyer do?

A business lawyer, also called a corporate lawyer, focuses on the legal matters businesses face. They might work on staff at a company, be kept on retainer (paid upfront for ongoing work), or be hired for one specific transaction. Some focus on one area, like setting up your business structure, while others help with a wide range of your business's legal needs.

Transactional lawyers

Many business lawyers are transactional lawyers, meaning they handle the legal side of running your business outside of court. They tend to work on things like:

• Setting up your business and its structure
• Mergers and acquisitions (buying or merging with another business)
• Corporate compliance (following the legal rules that apply to your business)
• Leasing and licensing property
• Managing employees
• Drafting and reviewing contracts and other legal documents
• Taxes

Business litigation lawyers

These lawyers represent your business in court when legal challenges come up. For example, if someone breaks a contract with your business or you need to sue someone, a litigation lawyer can step in. They generally pick up where transactional lawyers leave off.

Overall, business lawyers help make sure your business follows the law and runs smoothly. And if something goes wrong, they can guide you through lawsuits or disputes.

How do I know if I need a business lawyer?

Ask yourself these questions:

• Do you need help choosing the right business structure, like an LLC or corporation?
• Are you drafting or reviewing business contracts?
• Are you hiring employees or independent contractors and need agreements for them?
• Are you facing a lawsuit from a customer, employee, or business partner?
• Have you been accused of breaking business laws or regulations?
• Are you buying or selling a business and need legal guidance?
• Do you need help negotiating a business deal or partnership?
• Are you expanding your business into new locations or markets?
• Do you need help reducing your tax burden legally?
• Are you concerned about business liability and want to protect your personal assets?

If you answered yes to any of these, a business attorney may be able to help.

How much does a business lawyer cost?

Business lawyers charge in different ways, so costs can vary. Most charge by the hour, but some offer a flat fee for simple tasks like reviewing a contract. Keep in mind that hourly rates usually don't include extra costs, like filing fees.

Some businesses keep a lawyer on retainer, which means they pay a set amount upfront for ongoing legal services. This can make sense if you need legal advice regularly. Larger companies may even have lawyers on staff full-time.

Since fees depend on where you live and how experienced the attorney is, it's always smart to ask for a clear agreement that explains all costs before you hire anyone.

What should I expect when working with a business lawyer?

When you first meet, your attorney will ask about your business's history, your goals, and a few details about you. Small business owners and their businesses are often closely connected, so this helps them understand the full picture.

Once they understand your needs, your attorney will explain any legal risks and opportunities, put together an agreement that outlines costs and tasks, and start working on your legal matters, with regular updates along the way. A good attorney can help you protect and grow your business while keeping things running smoothly.