Questions To Ask An Attorney Before Starting A Business
Launching a business? Don't make costly mistakes. Consulting an attorney is critical, but knowing the right questions to ask is paramount.
This article provides essential questions every entrepreneur should ask a business lawyer before taking the plunge, safeguarding their venture from legal pitfalls and ensuring a solid foundation for success. Ignoring these crucial inquiries could lead to devastating consequences later.
Critical Questions for Your Business Attorney
Experience and Expertise
Does the attorney specialize in business law, specifically for startups in your industry? Inquire about their experience with companies of similar size and stage.
Ask about their track record: what's their success rate in similar cases? Knowing their specific expertise will help you determine if they are the right fit.
Business Structure and Formation
Which business structure – sole proprietorship, LLC, S-corp, C-corp – is best suited for your needs and goals? What are the legal and tax implications of each?
Can the attorney handle the entire formation process, including registration and obtaining necessary permits? Understand all the steps involved and the associated costs.
Contracts and Agreements
Can the attorney draft and review contracts, including those with vendors, customers, and employees? Comprehensive contracts are critical for protecting your interests.
What is their process for ensuring these agreements are legally sound and enforceable in your specific jurisdiction? Reviewing sample contracts is a good practice.
Intellectual Property
How can you protect your intellectual property – trademarks, copyrights, patents? Early action is essential to prevent infringement.
Does the attorney have experience with intellectual property litigation? Knowing their capabilities in this area is a must.
Compliance and Regulations
What are the relevant federal, state, and local regulations that apply to your business? Failure to comply can result in hefty fines and legal trouble.
Can the attorney provide ongoing compliance advice to ensure your business stays within legal boundaries? Ask if they offer compliance audits or training programs.
Liability and Risk Management
How can you minimize your personal liability as a business owner? Understand the steps you can take to protect your assets.
What types of insurance are necessary to protect your business from potential lawsuits or other liabilities? Discuss your risk tolerance and coverage needs.
Fees and Billing
What are the attorney's fees – hourly, flat fee, or retainer? Get a clear understanding of the billing structure upfront.
Are there any additional costs, such as filing fees or court costs? Transparency is key to avoiding unexpected expenses.
Dispute Resolution
What is the attorney's approach to resolving disputes – negotiation, mediation, or litigation? Understand their preferred methods.
What are the potential costs and timelines associated with each dispute resolution method? Consider the implications of each approach.
Ongoing Legal Support
Will the attorney provide ongoing legal support as your business grows? Having a trusted legal advisor on hand is invaluable.
What is their availability and response time for addressing urgent legal matters? Knowing they can promptly address concerns provides peace of mind.
Taking the Next Step
Don't wait until a legal crisis hits. Schedule consultations with several attorneys to find the right fit for your business. Proactive legal advice can save you time, money, and stress in the long run. Remember, investing in legal counsel is an investment in your business's future.
Due diligence and careful selection are crucial. Ensure your attorney understands your business goals and is committed to protecting your interests.
