If you’re looking for a lawyer for business, start with a different question: ‘What expertise do I actually need this lawyer to have?’ This is an often underappreciated aspect. Business law is a broad field, and different lawyers bring different skills and specialisations to your situation. This guide walks through how to work out what you need and how to assess a lawyer before you engage them. If you’re still deciding what kind of legal support your business requires in the first place, our overview of legal advice for business owners is a useful starting point.
Key takeaways
Choosing the wrong lawyer for your business can result in increased expenses and wasted time.
Prepare a list of questions before meeting with a lawyer for a consultation.
Look out for common red flags that can signal a lawyer isn’t right for you.
There are initial steps you can take to find the right representation.
Why getting this choice right matters
As a business owner, you’re concerned about the financial implications of any decision. Choosing the wrong lawyer can cost you twice. You’ll pay the fees for the service you received, and you’ll also face the long-term cost of your legal needs still not being met. The right lawyer can help your business in many ways, such as:
Foreseeing potential risks before they become legal issues.
Performing contract negotiations and reviewing contracts prior to signing.
Advising on partnership arrangements.
Providing practical advice that aligns with business objectives.
Signs you're ready to bring in a business lawyer
You don’t necessarily need a lawyer on retainer from day one of starting your business. Many small businesses operate successfully without a dedicated legal professional for some time. However, there are circumstances that can carry significant risk if not handled properly, which can make having a lawyer act on your behalf very important. Situations where you may want to consider getting legal support include the following:
If you’re entering more complicated contracts, such as a joint venture agreement, getting a lawyer to review it can be critical.
New business partnerships involve a lot of important considerations. You need to be clear on how ownership will be managed, each party’s decision-making responsibilities, how you’ll handle exits and disputes, and other crucial factors. A lawyer can help you establish clear partnership terms.
As your business grows, you’re likely going to face more complex issues. You might be taking on your first full-time employees or dealing with matters like intellectual property to protect your brand. This raises the risk of legal difficulties, and bringing on a lawyer at this time can help you avoid costly mistakes.
Going from being a sole trader to a company structure comes with additional compliance, reporting, and governance requirements under the Corporations Act 2001. It can be hard to keep on top of your obligations without expert advice.
Waiting to engage a lawyer can raise the chances of facing legal disputes. Depending on the severity, it can be imperative to respond with proper legal support so a matter doesn’t escalate into a significant liability later.
What to look for in a business lawyer
Many clients come to firms like ours looking for an ‘expert business lawyer’. It’s important to get past vague concepts like ‘experienced and professional’ and understand what your unique circumstances require. Here are some factors to consider:
Has the lawyer handled specific legal matters relevant to your situation?
Do they understand the commercial and regulatory environment your business operates in?
Can they explain services related to your needs without using jargon?
Will they provide you with a comprehensive and transparent quote for their work?
Do they consider your strategic goals when reviewing documents and agreements?
How accessible are they going to be when you need to reach them?
Which type of business lawyer do you actually need?
‘Business lawyer’ is often used as a general term that covers a number of different specialisations. Understanding which one you need can save you time on consultations with professionals who don’t handle your requirements. Specific types you may be interested in include:
Corporate lawyer
A corporate lawyer, as the name suggests, works with business entities that are subject to the Corporations Act 2001. They may also speak with a sole trader about whether a company structure could benefit them. They typically handle matters such as:
Business restructuring.
Assisting with governance compliance.
Managing mergers and acquisitions.
Negotiating how company ownership is structured.
Commercial lawyer
Commercial law mostly relates to the transactional side of a business’s operations. It can also deal with issues like employment matters and leasing property. A commercial lawyer could help with activities such as commercial contract advisory, including:
Reviewing agreements with suppliers.
Drafting customer contracts.
Drafting commercial leases.
Negotiating employment contracts.
Fractional in-house counsel
Fractional in-house counsel provides ongoing legal support as an embedded part of your team. This can suit growing businesses that need access to professional legal advice on a regular basis. They can help with a variety of matters, including:
Contract reviews.
Risk management.
Compliance oversight.
Questions to ask before you sign on
Speak with a lawyer before formally engaging them. Meeting them is vital to help determine whether their services are the best solution for your needs. It’s useful to have a list of questions ready from the outset so you recall the essential points you want to discuss. The right questions may vary based on your particular business, but common queries include:
Have you worked with businesses in my industry?
What major legal risks do businesses like mine typically deal with?
How are your fees structured?
How will communication be handled?
Will I communicate directly with you, or with someone else on your team?
Red flags for small businesses to watch for
An initial consultation is a good time to identify any red flags that may suggest a lawyer isn’t right for you. Common issues include:
They can’t adequately explain the legal issues around the matters your business faces.
Their focus is more on legal technicalities than connecting strategies to your business objectives.
They’re not able, or are unwilling, to provide a transparent quote for their services.
They promise outcomes rather than explaining the realistic scenarios you may face.
Getting started with the right fit
As your business progresses, your interaction with Australian law may become more complex, which can make professional assistance more helpful. Instead of engaging someone simply because it feels like the right thing to do, have a clear understanding of what exactly you need help with. Some basic initial steps to consider:
Think about your immediate legal issues.
Gather important information, such as contracts, licensing applications, or other documentation you need assistance with.
Consider what outcome you’re looking for to safeguard your business.
Prepare questions regarding experience, recommended strategies, and other issues you want to discuss.
Set up an initial consultation with different firms to understand your options.
Assess whether the lawyer combines relevant legal knowledge with an understanding of your position and business goals.
Melbourne has a large and diverse legal market, from large national firms to boutique practices. Some assume a major firm is better placed to provide resources across various specialisations. However, a smaller firm with strong roots in its local community can offer valuable qualities, such as:
More direct and personalised attention.
A tailored strategy for your situation, rather than a one-size-fits-all approach applied across many clients.
Greater flexibility in adapting communication and the legal approaches taken.
Seeking the right lawyer for your business
Our Mount Waverley team has extensive experience assisting businesses with a range of legal matters, such as reviewing commercial leases and negotiating contracts. You can see the full range of our business legal services, or contact us to arrange a consultation.
Disclaimer: This article provides general information only. It is not legal advice. Legal outcomes depend on your circumstances. You should speak with a lawyer before making decisions about your matter.
