When you are ready to start your own business and your thinking to yourself What do I do first? I recommend finding a good business lawyer. Lawyers are a scary bunch when they are after you, but on your side they are a tremendous asset. Their advice can save you a bunch of money in future costs. For example, the cost of litigation can cripple you if you are on the losing side of a lawsuit. A good attorney will be able to keep you out of the courts in the first place with their advice and this may save you your home, business and possibly huge settlements. Another example is your choice of business formation. Any lawyer worth their salt will tell you to avoid sole proprietorships and even worse, partnerships. You are liable for any of your mistakes in business as a sole proprietorship but as a partnership youre liable for your partners actions as well. This can cost you your home, savings and even future earnings. An attorney as a member of your team is a must. The money spent on fees can be considered well spent. Include your lawyer on decisions about contracts, agreements, loans and a whole host of other matters. Avoid any lawyer who wants an equity part of your business, this is not only a conflict of interest but the attorney may just turn out to be a frustrated business owner and attempt to control your business. Always remember, your attorney works for you not the other way around. His advice should be considered but you are the final decision maker. While your decisions will make or break your business, if his advice is bad he still has his practice. Dont let your attorneys advice become the word of god. Consider it and use it wisely. Interview your prospects for a lawyer before using them as a member of your team. Have they handled business formations before? Do they have experience in your type of business? Is he part of a firm or on his own? If part a firm, what is his role? Do you feel comfortable with him? These are just some of the questions I would ask before I decided to use a particular lawyer. Attorneys also can be sources of contacts that will help your business grow. They may know investors, a good CPA to use and many other people and companies your business may need or want. If you use a lawyer often in your business, be sure he is close by and easy to see. Who needs a long commute? |
