If you own or operate a business, you will inevitably find yourself in a situation one day where you are not certain whether to invest in an attorney or attempt to simply handle a matter on your own.
A good rule of thumb is what I call the “doctor test.” If you have searing chest pain, dangerously high fever or a severe wound, odds are you are not going to hesitate to call your physician immediately.
If you only have a headache or a bad cold, however, most people are content to take over-the-counter medication and see whether the problem resolves on its own before heading to the doctor.
Deciding whether to call an attorney should be the subject of a similar analysis. If you are facing a serious legal problem (such as being served with a lawsuit or notified of a fraud investigation), calling an attorney is a no-brainer.
Minor legal issues (such as applying for licenses and permits, leasing commercial space or forming an LLC) can often be handled on your own with minimal risk and expense.
Of course, there are always going to be gray areas where the question of whether to hire a lawyer is more difficult. Generally, I would recommend that you consult a skilled business attorney in any of the following scenarios:
• The legal issue may have long-term consequences.
If your CEO gets a ticket for an expired meter, it is unlikely that your company needs to call in the cavalry. Securities transactions, lawsuits, government investigations and other matters that may have long-lasting ramifications on the future of your business, on the other hand, should always be entrusted to legal counsel.
• The money at issue is significantly more than the cost of an attorney.
Any time a large sum of money is involved, it’s time to heed your grandparents’ warning against being penny wise but pound foolish. It is much more expensive to correct a mistake than to avoid it in the first place. If you are facing a legal issue in which a large amount of money is involved, it is often well worth the investment to hire an attorney.
• You feel outmanned or overwhelmed.
If you find yourself facing an opponent who is more established, has more money or is particularly versed in the law, an experienced and proficient attorney can even the playing field. These are circumstances in which you need a big gun: a skilled attorney who will act as your fierce and tireless advocate.
• You do not understand the law.
An experienced businessperson with firm knowledge of the applicable law can often comfortably handle most legal matters without assistance. If you are unsure of your legal rights and responsibilities, however, reaching out to an experienced business attorney for advice offers invaluable protection and assurance.
The longer you are in business and the more you strive to educate yourself on basic legal issues, the more adept you should become at handling most routine legal tasks on your own.
The ideal would be for you to develop the ability to handle most of the legal legwork on your own and then only reach out to your attorney when a specific question or problem arises.
Many entrepreneurs, for example, draft their own business contracts but then ask their attorney to review them to make certain they are legally sound and complete. This approach can be an extremely cost-effective way to utilize legal services.
The key is finding an attorney with whom you have a good rapport, who is responsive, and who is willing to let you handle your own legal issues when appropriate.
Finally, my best advice in determining if you need a lawyer is also the simplest: go with your gut. Even if an issue appears simple on the surface, listen carefully for that nagging doubt in the back of your mind telling you that something seems out of the ordinary or suspicious.
Gut instincts are remarkably accurate. Trust yours.
Charles Bowen is a business attorney who focuses on commercial, banking and manufacturing law and also offers comprehensive mediation services. He may be contacted at 912-544-2050 orcbowen@thebowenlawgroup.com.
By Charles Bowen