Legal
A good lawyer can become an important team member

Every business, whether large or small, is going to need a good lawyer at some point. So the sooner you find a lawyer and a law firm that fits your needs, the better off you'll be. The question is: What kind of lawyer? Most specialize or concentrate in certain areas, and so you might be better off looking for a capable law firm that offers the array of services you'll need. In many instances, there will be distinct advantages in hiring a firm that can, if needed, perform multiple functions for your business.

Starting your search
Begin your search by asking friends and business acquaintances you trust what lawyer or law firm they use. You can also tap into trade associations and other organizations that have ties to your business. The Virginia State Bar has a referral service designated by practice areas and location. You may also want to call the firm and have someone there send you an information package.

Lawyers from two practice areas in particular will be essential to you - business lawyers and litigators. A business lawyer will handle your business matters, such as assisting you with the choice of structure (corporation, limited liability company, partnership, business trust, etc.), forming that entity in compliance with statutory requirements, assisting you with any startup financing transactions and drafting or reviewing your contract forms and other legal documents. If, however, your business needs to take legal action against a third party, or if a third party takes legal action against your business, you may need a litigator. In addition, if your company will have employees, you will need the assistance of an employment attorney. All of these are specialized areas of expertise and require the services of a competent attorney practicing in that particular area of the law.

Also, as a small business you might be interested in obtaining financing through the U.S. Small Business Administration. Transactions funded through the SBA involve a fairly sophisticated process. Not every law firm is experienced in handling these transactions. Look for a law firm that specializes in meeting the needs of business owners, and you may find a partner that can help you and your business succeed.

Face to face
Once you have your list down to a manageable size you can set up visits to a few firms. Plan a meeting with an attorney with expertise in business law. During that meeting, find out if any of the lawyers at the firm have experience in handling businesses similar to yours. Find out if someone at the firm keeps up with statutory changes and judicial decisions that could affect your business. Ask who at the firm will be handling your business and request an introduction. The face-to-face meeting with your direct contact will give you the opportunity to interact with a person who may be very important to the future of your business.

Finally, it is always important to discuss fees and costs in advance. While law firms handle fees differently, a straight hourly fee is the most common arrangement. In some instances, however, a flat-fee arrangement is an option. It's not unusual for a law firm to require a fee-arrangement letter. That letter would spell out the expectations on both sides as a prerequisite to the commencement of legal work. This document benefits both parties, as it reduces to writing a very important aspect of the relationship. Depending on your needs, most law firms are open to a variety of arrangements in regard to fees and costs.

Along with the fees for legal services, there are other costs associated with dealing with a law firm, such as overnight delivery costs, long-distance telephone charges, photocopy charges and regulatory agency filing fees. It is important for you, as the potential client, to understand and agree to the arrangements for fees and costs in advance.

Alternative resolutions to disputes
If your business gets into a legal dispute, there are options besides going to court. One option is mediation, in which two parties meet with a neutral third party in an effort to reach an agreement without the expense of a trial. The mediator is a paid, unbiased referee whose objective is to help find a workable solution. Find a mediator through your local chamber of commerce.

The other method is arbitration, which is more like having your own private court. The two parties present their cases to an arbitrator or an arbitration panel. Arbitration is less formal than a court. Arbitrators can render decisions based on law or on what they consider to be equitable. They hand down a decision like a judge or jury but the process is much faster and less expensive than a trial. The key to arbitration is that the decision is binding, meaning both parties must submit to the outcome.