There may come a time in your company’s business when you must decide if you need to consult a lawyer. Here are some factors that can help you determine whether this is indeed necessary or not.
#1. What is the amount at stake? If you are looking at low dollars, it is probably not cost beneficial to involve a lawyer. You probably can afford to take the financial risk of any losses.
#2. What is the risk? What is your liability exposure? Are we talking about forming a company where your personal assets may be exposed? If so, you may lean towards hiring somebody to protect them. Or are we talking about something smaller, something less valuable? Maybe a small, few-thousand-dollar disagreement with your mechanic? Are there exposures beyond the dollars involved? It may be a good idea to involve experienced counsel early in the process to help protect you.
#3. What are the long-term implications? If the transaction that you are working on does not have long-term implications, perhaps you can afford to take the risk.
#4. What if things really go wrong? What is your worst-case scenario? Thinking through every scenario, whether right or wrong, can often point you in the right direction as to whether you should involve counsel.
What have been your thoughts? Have you been burned by not using a lawyer in the past? Or have you been fine without using counsel? Let us know what your experience has been in the comments below.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity. Freeimages.com/Photographer Tsu Nimh.
About the Author
Shawn McBride — R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride or call 407-517-0064.
Check us out on the web.
Add us on Twitter: @rsmlawpllc
Like us on Facebook.
Make sure you download our free reports on how to build your company the right way.