3 Reasons Getting Small Business Law Advice Can Avoid Worry

How many small business owners worry that their legal documents are not air-tight?  Probably quite a few.  How many sit down in a comfortable chair and research recent small business law changes in Minnesota?  Probably very few.

Instead, you are busy managing interviews, payroll, signage, product, and customer service issues. Sound familiar?

Consequently, owners of cash-strapped businesses may be tempted to copy legal document templates. Then they typically cross their fingers that they will never have to defend them in court. However, legal complexity, business risk and finance concerns lead smart business owners to seek professional legal advice.

1. Business Laws Are Complex

Firstly, Minnesota’s small business laws are complex, constantly changing and may not  relate to every small business.  When setting up shop on a tight budget, many owners either don’t know or choose to ignore these facts.  If you decide to draft your legal documents by copying templates, consider the following questions regarding complexity: 

• What important aspects of your business/situation need to be addressed?
• Which current Minnesota laws and regulations relate to your legal document?
• What are the potential legal issues and risks to your business related to this document?
• Would this document impact your existing business documents?

2. Self-Help Can Increase Your Risk

In addition to complexity issues, drafting legal documents yourself can be risky for several reasons:

• A document that misses an important point could mean costly legal issues down the road and possibly the loss of your business
• Documents that are improperly witnessed or notarized could invalidate the documents
• Also, signature dates and the order of document submission can be critical to ensuring your intentions will hold up in court
• Template forms may not have been updated to reflect current Minnesota laws
• Copying generic templates, even modified for Minnesota, does not guarantee that your document will provide enough information to protect your unique business in the future

These risks may apply to any contract, client agreement, incorporation, and many other business documents.  Furthermore, once the document signing is completed it’s generally too late to make any changes. Depending on how your business is set up, you may risk losing not only your business but also your private assets.

Importantly, if you decide to use a template, look carefully at the disclaimers to better understand your risk.  Many state that the template creators:

• are not a law firm nor a substitute for an attorney
• may not provide any kind of advice about possible legal issues
• cannot even help you select the appropriate form for your situation

So, does that sound like the kind of support you’d like when you run into issues?  

3. Benefits Outweigh Costs

Therefore, getting personalized, professional legal advice can give you a greater peace of mind.  You can know that your prized business stands on solid legal footing. However, many owners are concerned about the costs of talking with an attorney.

The good news is that most attorneys offer a brief, complimentary chat to discuss your legal concerns.

If you decide that it makes sense to have an attorney draft your documents, you should understand the costs.  There are two common ways an attorney might charge for these services:

• Hourly – After you have discussed your needs, they will give you an estimate of the time it will take to prepare and sign your documents. They may ask for a “retainer”, or  money you pay upfront. These funds stay in a special account until the attorney does the equivalent work.  If it takes additional time to complete the project, you will be asked to increase the retainer amount.  But, if extra money exists at the end of the project, you will be refunded the unused portion.

The hourly rate depends on several factors.  You will generally pay more for the type and amount of experience, an urban location, and a larger firm.

• Flat rate – After they have discussed your needs, the attorney will assign a set dollar amount for the document creation. No matter how much time it takes to fully prepare and sign a document, it is included in the flat rate stated upfront.

How Can A Small Business Law Attorney Serve You Today?

Finally, in whatever stage your business exists — creation, expansion or day-to-day work — it pays to have a quick chat with a small business attorney.  In short, they can help protect your business and support your growth.

These attorneys ask the key questions to identify which legal documents are required for your business.  If you desire, they can tailor these important documents to your particular situation.

In addition, developing a rapport with your business attorney can often lessen your worry about the inevitable legal issues most small businesses face.  When the issues occur, your attorney will better understand your business and risk tolerance.  Moreover, you will feel comfortable asking questions.

A few services you may want to discuss include:

• determining a start-up legal strategy
• incorporating your new business
• restructuring your corporation
• drafting a buy/sell agreement
• planning for how you’ll eventually leave or sell your business

What’s the Next Step?

In conclusion, small business law attorneys can address complex laws, decrease risk, and save you money.  Start today with a brief, complimentary phone call with Brian to answer your basic questions.  Together you can determine if you need an attorney right now.  Importantly, you’ve started a relationship with a strong advocate for the future of your business.

You have enough on your plate as it is without being concerned about drafting documents and avoiding legal headaches. Schedule your time to talk with Brian today.

Leave the small business law pleasure reading to him.