How to choose a lawyer for your consulting business

Just about any business can benefit from the advice of a lawyer—even a business of one. Solid legal guidance can save you time, help you maintain compliance with the laws and regulations that pertain to your business, and reduce your risk exposure. For many independents, the process of choosing your own personal Michael Clayton doesn’t come with a clear playbook: You know that you need an attorney, but you might not be entirely sure how to find one who suits your needs—or what your legal needs even are. 

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The guidance below can help you vet and hire an attorney in a few straightforward steps. Use it to guide your search for the perfect lawyer—so that you get the right legal help at the right time for you. 

When is the right time to bring on a lawyer?

Generally speaking, it’s good to have a lawyer from the beginning of your independent journey. The wrong time to find a lawyer would be when you’re in a rush. Seeking legal help upfront can help you avoid costly mistakes like signing an unfavorable contract or incorporating your business in the wrong place. It also ensures that you’ll have quick access to support when you need it. If you find yourself in a contract dispute or need an answer to an employee classification question later on, for example, you’ll already have a trusted lawyer at the ready. 

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Formalizing a relationship with an attorney early on also won’t necessarily increase your upfront costs. Many attorneys only charge when you use their services, so you can find one right away and hold off on using their services until you need help. If an attorney you’re considering charges a fee to start an engagement, you may be able to negotiate; some are willing to waive or reduce upfront costs when establishing long-term professional relationships. 

How to choose a lawyer

Choosing a lawyer takes a decent amount of leg work. You’ll build your legal knowledge base, identify specific use cases that apply to you, and identify and interview multiple candidates. You can use the following process to find a reliable partner with skills you need to protect and grow your consulting business.

1. Know enough to be slightly dangerous

As an independent, you’re the CEO, COO, and CFO of your business—and until you bring on an attorney, you’re also general counsel. You don’t need a law degree, but you do need a basic understanding of your legal obligations as a business owner. 

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Building your legal knowledge base can help you identify your needs and communicate them to prospective attorneys. This can reduce your costs: You’ll be able to ask targeted questions, increasing the efficiency of your legal spend. You’ll also be able to resolve basic issues on your own and reserve paid counsel for matters that require an expert. 

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Use free resources to read up on your legal requirements. 

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• The US Small Business Administration publishes a legal compliance overview and detailed guides to processes like registering for state and federal taxes and navigating licensing and permitting requirements. 
• You can also consult your state’s Department of Revenue, Secretary of State, or Small Business Assistance Office for state-specific information. 
• Many large law firms publish content aimed at building trust and authority with an audience of business owners, and you can use these resources to build your knowledge base whether or not you’re considering hiring the firm. 

2. Identify your legal needs

Next, identify your areas of potential need. It’s okay if you aren’t certain if a particular regulation applies to you or if you’ll need help in a specific area—that’s the expertise your attorney will provide. The ideal lawyer is experienced with independents and with your specific industry. They’ll know the unique risks and challenges associated with your practice, and they’ll be able to fill in any blind spots you have. You might be able to build your own website, but we’d recommend writing your own contracts from scratch. 

Here’s an overview of common areas of support for independents:

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• Contracts and contract review
• IP protection
• Legal structures and incorporation
• Hiring, payroll, and employment law
• International clients and incorporation
• Worker classification
• Industry regulations
• Tax matters
• Payments and collections
• Professional liability and insurance
• Negotiations
• Stock options

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Create a list of needs that are (or will become) relevant to your situation. Plan ahead: You may not need to incorporate or hire workers now, but if those developments are possibilities, it’s good to have legal counsel who can assist you down the line. Choosing a firm that has attorneys across specializations or a large subcontractor network can allow the relationship to scale with your business. And if you might ever need your lawyer to help you negotiate contracts, having a firm with a solid reputation can give you an edge.

3. Determine your budget

Legal fees vary widely. Many small business attorneys charge between $200 and $700 an hour, but rates can be significantly higher in major metropolitan areas. Fee structures also vary. Some attorneys charge flat fees for specific services (where you pay a fixed price for a service like preparation of operating agreements) or work on retainer (where you pay a lump sum from which they deduct the cost of services as provided) or contingency (where they work for a percentage of the money you receive when you win or settle a case). If you’re on a tight budget, finding an attorney who offers productized, flat-fee services can help you minimize costs. 

4. Identify options

Your next step is to identify lawyers to interview. The most effective way to compile a list is to ask for referrals from people in your network. Reach out to friends, family members, former colleagues, and professional acquaintances to share information about what you’re looking for and ask for recommendations and rate benchmarks. If you’re a Pollen member, you can also leverage the Pollen community for targeted referrals from people who understand your legal needs as an independent. 

5. Interview attorneys

Next, arrange interview calls with the attorneys on your list. Your objective is to get a sense of whether the lawyer’s area of expertise, communication style, and fee structure is appropriate for your business. 

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Remember that the person selling a firm’s services may or may not be who you’ll work with day-to-day. Partners at large firms are often responsible for signing accounts, while associates handle day-to-day client correspondence. Ask for clarification, and request to meet your primary point of contact if they aren’t already present. 

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Here’s a list of questions to consider asking:

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• What’s your experience working with businesses like mine?
• Who will I be working with day to day?
• What is your pricing and billing structure?
• Do you have any productized offerings, such as flat-fee entity formation or contract drafting?
• How do you communicate with clients, and what are your turnaround times?
• What specializations do you have in house? Which do you contract out?
• Can you walk me through how we’d get started?
• Are there fees for setup?

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You can also get a sense of a lawyer’s communication style by asking the attorney one of the questions on your list. If a specific catalyst led you to seek legal help, use that: For example, you might ask for advice about navigating negotiations for a particular contract clause or creating legal terms and conditions for an online class. 

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The ideal partner gives you the attention you need and can act swiftly on your behalf when the situation requires it. You can get this kind of service from a quality firm of any size, but if personalized care is particularly important to you, you might opt for a boutique firm: You won’t have access as extensive an internal resource set as you would with a larger company, but you’ll be able to build personal relationships with a relatively small team. Larger firms offer extensive capabilities and a powerful brand name, but they may provide a less personalized experience.

6. Formalize the engagement

When you’re done, select a lawyer. Typically, your attorney will send an engagement letter, which is a legally binding document that details the scope of services, fees, and compensation structure. You’ll review, sign, and return the document to initiate the relationship. Your attorney or a representative of the firm will then walk you through the rest of the onboarding process and schedule your first meeting, if applicable.

Tips for working with a lawyer 

Once you’ve hired a lawyer, focus on making the most of your relationship. Here are four tips to keep in mind:

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• Ask pointed questions. Avoid broad, general questions like “Is this contract okay?” or “Should I launch an app?” You’ll burn billable hours without necessarily getting the information you need. Instead, do your homework, and bring your attorney specific queries like “Does this recently revised contract clause protect my business’s intellectual property?” or “I want to launch an app that helps users make the perfect soft-boiled egg. How can we limit my product liability risk exposure?”
• Organize your legal documents. Keep all of your legal documents in one place, and organize them so that it’s easy to find what you need. Pay special attention to version control: A professionally revised contract can’t help you if you accidentally use an older version for client engagements. 
• Be proactive. Plan ahead, and reach out immediately if you anticipate an issue or have a question you can’t answer on your own. It’s typically much cheaper to avoid a legal problem than it is to solve one.
• Keep your attorney in the loop. Notify your attorney of major developments and plans, including new lines of business, changes in revenue, and adjustments to your business structure or employment model. This will help your attorney provide better answers to your questions, and they’ll be able to plan ahead and schedule additional time for your account, if needed. 

Pollen’s legal resources for independents

A Pollen membership can help you make the most of your relationship with your lawyer. Members get access to legal playbooks, workshops, community discussions, a custom contract builder, and a legal expert-in-residence who holds regular office hours. You’ll build your document library, get quick answers to basic legal questions, and expand your knowledge base.

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