Your startup will face unnecessary legal issues and tax liabilities when you pick the wrong business structure. These things will destabilize it and may lead to its demise. Hiring a business lawyer is one of the strategies for avoiding these problems.
You’re worried about the fees this business lawyer will charge your startup. You’re uncertain about whether you can afford to pay these fees. Also, you’re doubtful about the need to seek legal services at this stage.
Keep reading to discover the various fees a business lawyer you hire will charge your startup.
Retainer Fee
Although you don’t want a small business lawyer now, the need may arise in the future. It’s hectic looking for a lawyer when facing a legal problem. The rush may cause you to pick an incompetent attorney who renders inferior services.
The proactive measure is to establish a relationship with a competent business lawyer. To do this, you’ll need to pay an upfront fee for future legal services. By receiving the retainer fee, the lawyer agrees to represent your startup when the need arises.
Your startup will pay $2,000-$100,000 as a retainer fee to the business lawyer. The amount will vary depending on the attorney’s specialty and experience level.
Hourly Fees
For ongoing legal issues that the lawyer does not know when they’ll end, he may charge an hourly rate. Your startup will pay $150-$325 per hour to access these legal services. The amount is influenced by the complexity of the work and the lawyer’s qualifications.
Junior lawyers tend to charge lower hourly rates than senior corporate attorneys. It’s up to you to decide whether to hire a junior or senior business attorney. It’s better to pay the higher hourly rate of the senior business lawyer for serious legal problems.
Flat Fees
For one-off tasks like filing the business registration papers, the lawyer may charge you a flat fee. The amount ranges from $500 to $2,000, depending on the nature of the task. Compare the flat rate different business lawyers charge for the various tasks to know the one to hire.
Check the value your startup will get from paying this fee to determine if it is worth it or not. For example, you can pay a business lawyer to help you draft incorporation documents.
Hire the Best Business Lawyer near You to Avoid Legal Issues
As a startup owner, you’re new to business contracts and managing various legal issues. If you’re not careful, you may face lawsuits that can bankrupt the business. That’s why it’s worth incurring the cost of hiring the top business lawyer.
The lawyer will educate you on various business structures and recommend the one to choose. Also, you’ll get legal counsel when signing a business contract with other entities. The objective is to protect your startup from legal problems that disrupt operations.
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