Are you trying to decide whether to hire an attorney for your small business legal needs? There are more than 31 million entrepreneurs in the United States – most of which operate a small business.
While you may have a wide depth of knowledge and experience in the business world, legal know-how is crucial to your success too. This makes hiring an attorney one of the things you can’t afford to overlook.
Read on to learn about how much it will cost to hire a small business lawyer!
Flat Fee vs. Hourly Rate Billing
A conversation about hiring the best business lawyer starts with an explanation of flat fee billing and hourly rate charges. Many attorneys use one of these billing practices to charge their clients. learn more here.
Flat Fee
Sometimes, lawyers will charge a flat fee for their services. For example, if you need an attorney to draft a partnership agreement for your business, he or she may tell you it will cost $2,500. This means that regardless of how much time they spend on the task, your out-of-pocket cost will be $2,500.
Hourly Rate
Most of the time, a small business attorney will bill his or her clients at an hourly rate. Using the same example about a partnership agreement, the attorney may quote you their hourly rate of $300 per hour. This rate is billed in six-minute increments.
If the partnership agreement takes your lawyer five hours, it will cost you $1,500. If it takes them 10 hours, you’d pay $3,000. Some clients like the certainty of a flat fee arrangement, so speak to a prospective attorney to get more information about their billing practice.
Small Business Experience
It’s not uncommon to pay a higher rate for an attorney with more experience in the small business realm. You shouldn’t confuse paying a higher hourly rate with getting better quality representation.
Some clients want to retain a small law firm, while others want a bigger firm with many attorneys working in the office. It’s not uncommon for larger firms to charge a higher hourly rate. There are more costs for a bigger firm to maintain the practice, and these attorneys can often command a higher rate.
How Where You Live Impacts Legal Costs
You should expect to pay higher legal fees than others depending on where you live. For example, hiring an attorney in New York City will typically be more expensive than retaining a lawyer in Jacksonville, Florida.
This discrepancy in hourly rates is because of the demand for attorneys in an area and the cost of operating a law firm there. The prices you pay for legal services will be a combination of the kind of lawyer you hire and the price for their legal help in your community.
Retain a Small Business Lawyer Today
Retaining a small business lawyer is a great way to avoid problems with your company in the future. A corporate attorney will help you to plan for issues down the road. This will help you navigate through uncertainty with more confidence.
Do you have another need for legal services in your life? Check out our blog post on five steps to take during a car crash recovery case with your lawyer!
