Do Not Pay Too Much For Your Small Business' Legal Services

​So you are thinking about legal services for your business, ask yourself a few questions:
 
How Much Will It Cost For An Attorney?
How Much Should I Set Aside For a Lawyer's Fees?
Am I  Paying Too Much Or Too Little For An Attorney's Services?

The answers to these questions can vary depending on the circumstances.  That said, there are some ground rules you can follow. In 2015, an annual survey showed that most companies of different sizes spent around 0.38% of the company's revenue for legal expenses.

Based on the 0.38% Spent On Legal Services:

$250,000 Revenue - $950 Legal Services
$1,000,000 Revenue - $3,800 Legal Services
$5,000,000 Revenue - $19,000 Legal Services

If your business is spending less than what is considered average, ask yourself if you are running risks by dealing with issues on your own vs getting advice from an attorney.  If you are spending more, that doesn't mean you are dealing with an expensive law firm or you are giving them more work than needed.  Ask yourself what legal issues your law firm handles over the year.  If your business is involved in litigation or a major project, you might be paying above average.

Another step you can take to determine what your budget is for legal services is to compare one law firm's legal rates with another law firm.  According to a survey, the average hourly rate for an attorney's services is $536.  Also, take into consideration where they are located and how large they are.  Bottom line, smaller law firms in lesser populated areas will charge less.

You need to find a firm that is a good fit for your business before jumping on board the first one you run into.  Simply put, small businesses should look into small firms, large corporations should look into large firms.

Small law firms usually have 50 or fewer lawyers and small businesses usually have revenues that are less than $10 million.

Best advice, get on the internet and search for lawyers and law firms that deal with business law and will work well with your budget.  You obviously want to narrow your search down to firms that are in your area.  Until you become a huge corporation, steer clear of large, very expensive law firms. If you have friends who are owners of small businesses, see if they have any suggestions.  This might all take a little time but in the long-run, it will be well worth your time to protect your business.
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Starting and running a small business is no easy matter.  It takes a lot of work and making sure you have everything lined up that will protect your business and help you grow.  Having a good attorney is imperative to ensure you are covered from any future issues or helping you understand all contracts and other legal paperwork.