There are all kinds of situations in which legal advice or just education will be advantageous for a small business owner, even if not absolutely necessary. When a particular business, owner, or officer will actually seek legal insight often depends on a combination of issues such as whether there is money in the operating account, how risk averse they are, how proactive they are, whether they have had a bad/good legal experience, how much is at stake in the transaction at issue, and so on. There are no hard and fast rules for when to talk to a lawyer. It may be that your attorney is a great general advisor who happens to have a legal perspective. But at the very least, here are some examples (not an exhaustive list) of situations in which a business should seriously consider getting legal help:
- negotiating a franchise agreement;
- creating standardized forms that the company will use repeatedly in the business;
- buying or selling a business or business assets;
- negotiating loan terms;
- negotiating leases of land or equipment;
- buying or selling property;
- registering and protecting intellectual property rights;
- negotiating agreements or licenses regarding patents, trademarks, confidential information, trade secrets, copyright rights, whether they are your rights, or rights you are obtaining;
- negotiating and drafting independent contractor agreements, commission plans, consulting agreements, employment agreements or manuals;
- negotiating and drafting joint venture, strategic partner, service agreements, and similar contracts;
- responding to a subpoena, lawsuit, service of any kind, or any serious threat of legal action;
- filing a lawsuit on behalf of a business;
- dealing with the government on a serious issue like regulations or zoning;
- dealing with tax authorities on a serious issue;
- seeking new investors;
- opening offices or conducting business in other states or countries;
- exit, succession, disability, emergency, or legacy planning; and,
- strategies for dealing with troubled businesses (bankruptcy).
Many business only think to talk to their attorney when they perceive there is a problem. However, many of the situations where an attorney is most helpful are when there are opportunities.
