"What Should I Look for when Hiring a Business Attorney?"

Ronald J. Axelrod
Feb 6
3 min read

Updated: Feb 7

A Guide to Hiring a Business Attorney

Whether you’re in the formation stage of your business, or are an established business owner who needs experienced legal advice for critical matters, you may find yourself asking, “What should I look for when hiring a business attorney?” Finding the right fit not only requires diligent research but knowing what to look for is essential to help you make the right decision. While many business lawyers are available, finding one with relevant industry experience, good communication skills, and transparent fees can be daunting. To help you make an informed decision, consider the following tips:

Qualities and Experience

Good Communication Skills: Is the attorney speaking with you about legal terms in a way you can understand? Look for a business lawyer who translates "legalese" into clear language and is responsive to your questions.
Consider Accessibility: Ask the attorney, “Who will handle my day-to-day legal work?” Find out who you will be able to call or email if you have a question. Will it be the attorney you are consulting with or someone else?
Reputation and Trustworthiness: Verify the attorney’s status with the local bar association. Check reviews on their Google Business Profile and social media sites where the attorney is listed. You can also read online reviews in professional attorney directories. When in doubt, ask for references from the attorney’s current or past clients.
Relevant Experience: Ask if the attorney has had any experience with companies of your size and/or industry. Inquire about any current clients the attorney may have in your same industry that might result in a conflict of interest. Ask pointed questions and be comfortable with the answers you receive—or look for another business lawyer. For complex business issues that require knowledge and experience in your industry, a lawyer with experience in your business sector will better understand common pitfalls and specialized regulations.

Senior business attorney meeting with a business owner at a desk.

Understanding Fee Structures

Fee structures among attorneys change based on the type of services needed, and simplicity or complexity of the legal matter involved. The business attorney should be up front and totally transparent about the cost of their services for defined projects. Ask how you will be billed for legal services. Here is a list of widely used fee structures in the legal profession. Depending on the legal matter, the business attorney may use a combination of these fee structures.

Hourly Rate Billing: Business attorneys typically charge by the hour for complex or ongoing legal matters where the total time commitment cannot be accurately estimated ahead of time. Common scenarios for billing by the hour are for contract negotiations, general corporate maintenance, and litigation.
Flat Fee Approach: Many business attorneys use flat-rate (or fixed-fee) billing for routine legal services such as forming a new business (LLC/corporation setup), drafting and reviewing contracts, filing trademarks, and preparing documents. Although time spent for legal services outside of the scope of the work agreed upon are typically billed by the hour (lengthy phone calls and emails, additional document reviews, etc.).
Standard Retainers: A retainer for legal services ensures the attorney is available to handle legal matters without delays and to cover potential future expenses. Business attorneys often require an upfront retainer, which is drawn down as hours are billed. If the amount of the retainer looks like it will be exhausted with more work ahead, the attorney may ask for it to be replenished.

Watch for Red Flags

A young couple starting a business is confused and surprised at a meeting with an attorney.

Poor Communication Skills: They offer generic, template solutions rather than taking the time to understand your unique business goals and tailoring advice to your situation. They also do not explain legal terms in a manner than you can understand.
Unrealistic Promises: The business attorney makes promises that sound too good to be true—and most likely they probably are. Ask for details.
Unresponsiveness: The attorney is hard to reach when you have questions, is slow to reply to your phone calls or emails or fails to provide regular updates on the progress of your case.
Inexperience: The attorney lacks real world experience handling legal business-related matters or is fresh out of law school. Inexperience may lead handling your legal matters in an efficient manner—especially if you are on an hourly-fee billing structure. Lack of experience means the attorney could miss key tasks that are necessary to protect you and your business and may be costly.
Unpreparedness: The attorney comes to the initial meeting clearly not having researched your business or industry, which indicates a lack of preparation.

Conclusion

The law firm of Ronald J. Axelrod and Associates provides a wide range of legal services for businesses in Rochester, NY, and surrounding areas. With over four decades of focusing on business law, you can trust you will receive the highest quality legal services and the personal attention that you and your business deserves. For more information, call us at (585) 203-1020 today.

Learn More