Small Business Lawyer Cost: Everything You Need to Know
Any small business owner who wants to protect their business should consider hiring a lawyer. A small business lawyer, depending on specialization, can help the company in terms of accounting and finances, employer-to-employee disputes, and other customer concerns. They can protect and mediate for the business in some instances where an issue can arise and can accrue documents needed to process these concerns.
However, some entrepreneurs may worry about the cost of hiring a small business lawyer. As a professional, lawyers have the impression that they’re highly paid, and some companies can’t simply afford to hire them on a regular basis. In this post, we will be looking about how much it costs to hire a small business lawyer and everything else you need to know about it.
Small Business Lawyer Cost: Everything You Need to Know
1. Small Business Lawyer Cost: Junior Lawyer and Senior Partners
There are two main types of lawyers that you can hire for your small business. These are the junior lawyers and senior partners. According to Lawyers of Distinction, a membership group for esteemed lawyers, the junior lawyers are newer to the profession and may have fewer experiences. However, their professional fees cost a lot less compared to the senior partners. Most junior lawyers try to work on their case individually, which can typically range from $100-200 per hour.
A senior partner would be described as a lawyer or a group of lawyers in a major city. You would find them in one company, often called a “law group”. These senior partners have more background experience, and some of them may have garnered recognition in the past for their work. Hiring a law group or senior partners would typically cost around $1000-1,500 per hour. They are best to hire for dire situations where you need guaranteed expertise.
2. Determining the Issues that Your Lawyer Will Handle
Since small business lawyers are quite known for their high professional fees, it is important to consider which types of issues you need to hire them for. In some instances, it is very crucial to hire them to win your case. But for petty issues, you may just be better off handling the situation yourself. Here are some example issues that the small business lawyer can help with:
When you are being sued by a customer or employee: If it’s an issue that needs to be settled because your company is being sued for violation of rights, it may be best to hire a professional small business lawyer.
Safety and environmental concerns are being complained about your company: Your small business may be in jeopardy if concerned citizens in your community try to file a complaint about your establishment for safety and health issues.
Selling, merging, and acquisitions: If you are thinking about selling your company to another owner, or if you plan to buy another company. This also applies to merge agreements and acquisitions. The small business lawyer can help in determining valuation, setting terms and conditions, as well as assisting your company through the documentation of the whole process.
Assistance in succession: The small business lawyer can also help in setting agreements between the previous president, CEO, or owner, and the successor.
Lawyers of Distinction suggest that companies who are going through these situations should heavily consider hiring a reputable small business lawyer.
3. How to Pay Your Small Business Lawyer
Some small business lawyers can offer you a free consultation, or one with only a minimal fee. Upon checking your case, it is important to ask how much time the work needs to be done, so that you can set a budget for hiring them. If the work will take 2-3 weeks to complete, then an estimated cost of your small business lawyer is their hourly rate multiplied by 7-8 hours. To help set a good budget, both parties should know what they are expecting from each other.
Another way to pay your small business lawyer is through flat rates. Ask a reputable group if they offer flat rate services for your case. If they do, compute if it’s more sensible to pay the flat rate vs. the hourly rate.
4. Mistakes to Avoid When Hiring a Small Business Lawyer
Before hiring a lawyer for your company, it is important to remember that there are some red flags that you need to avoid. Firstly, you should hire a company within your business’ local area. Most likely, your attorney should know the laws of your community in order to be best effective. Another one to consider is checking their certifications and credentials. Lawyers of Distinction pieces of advice small businesses to always check if the attorney they are hiring is accredited or someone who isn’t suspended or retired.
A small business lawyer is helpful for your company in a lot of situations. Make sure to assess your issue, and do your research before moving forward.