What Do Business Lawyers Do?
For many business owners, the time to hire a lawyer comes only when faced with a lawsuit or other legal conflict—but if you want to avoid serious future problems, you should seek out an experienced business lawyer much earlier in the process.
Failing to do so means potentially getting into serious trouble later on—incurring liability for business details you didn’t understand or on contractual obligations you were previously unaware of.
Some of the most common responsibilities of business lawyers include:
Business law is a broad practice area, and because of that there are many different types of lawyers available. In Maryland, we have lawyers who specialize in nonprofit law, small business law, intellectual property law, employment law, consumer rights law and many other niche practice areas.
But where does commercial and corporate law fit in? The terms business law, commercial law and corporate law are essentially synonyms. Although there are some aspects of corporate law that are distinct from other forms of business law, both handling LLCs and small/midsize corporations are considered to be prime examples of commercial and corporate law.
When your company has only a handful of employees, it may not be necessary to audit every single one of your standard contracts. However, these contracts need to be prepared correctly , and a business lawyer can help ensure this happens. These contracts are integral to your financial future and your ability to navigate conflicts in business.
Often times, entrepreneurs and other businesses use large-scale contract template providers. This is not to say that the drafts and templates offered by those services are not useful—they are often extremely helpful in saving time—but they are almost always worth at least reviewing by a business attorney. The attorney will be able to offer insight on what provisions of the contract are important to focus on, including potential liability issues.
Your business may be running smoothly now, but at any point you could come across a conflict with a client, a partner or a vendor that demands an escalation to the legal level. Experienced business lawyers can help you navigate these processes successfully, addressing the issue before it becomes a full-blown dispute.
Typically, the first step is mediation, during which the parties involved in the situation can discuss issues and see if they can find a resolution without needing to involve legal action. Your business lawyer can help you determine the best approach for the situation.
Should a dispute end up being completely unavoidable and lead to litigation, your business lawyer will effectively be your legal advocate, working to present your case and get you favorable outcomes.
Why You Should Hire a Local Maryland Business Lawyer
While it’s possible to engage the services of an attorney in another state or country who may have a greater depth of experience in corporate law than any Maryland business lawyer, such a person would necessarily lack knowledge of Maryland specific corporate and contract law. A Maryland lawyer can draft contracts that will be enforceable under Maryland’s contract law, file articles of incorporation in the appropriate forum (either State Department of Assessments and Taxation or Clerk of Court, depending on the type of entity), whether a proposed company name is usable under Maryland corporate law (the State Department of Assessments and Taxation publishes an online database for this purpose); determine whether to include a registered agent for service of process and create an operating agreement, shareholder agreement or other corporate governance document that meets Maryland statutory requirements and lawyers can use their connections to Maryland government and business influencers to their clients’ advantage.
Common Legal Services Provided by Maryland Business Attorneys
When selecting the right business lawyer in Maryland, it’s important to understand the specific legal services they provide. An experienced attorney will offer a broad range of services tailored to the unique needs of your business. Here is an overview of the key legal services a Maryland business lawyer can provide:
Entity Formation: One of the primary services provided by a Maryland business lawyer is entity formation. Whether you’re forming a corporation, limited liability company (LLC), or partnership, an experienced lawyer can help you choose the right structure for your business. They’ll file the necessary paperwork with the state, draft your organizational documents, and guide you through the entire process.
Contracts and Agreements: Every business relies on contracts to establish relationships and protect its interests. A knowledgeable business lawyer can draft and review contracts for all aspects of your operations, from supplier agreements to employment contracts, licensing agreements, and non-disclosure agreements. They can also advise you on potential legal issues in your contracts and help you avoid costly disputes.
Intellectual Property Protection: Protecting your intellectual property (IP) is essential to the long-term success of your business. A business lawyer can help you secure trademarks, copyrights, and patents for your IP assets. They can also advise you on licensing agreements, franchising, and sales of IP, ensuring your interests are protected.
Employment Law Compliance: Navigating employment law can be a complex undertaking for any business. A business lawyer can help you comply with federal, state, and local labor laws. They can draft employee handbooks, advise you on employee classification, and provide guidance on employee benefits issues. They can also assist you in handling layoffs, terminations, and other workplace issues.
Disputes and Litigation: All businesses face the threat of disputes. A business lawyer can help you settle disputes before they turn into costly litigation. If litigation is necessary, they will represent your interests in court or arbitration proceedings. A business lawyer can also advise you on alternative dispute resolution strategies for avoiding litigation.
Tax Assistance: Tax planning is an integral part of managing a business. A business lawyer can provide advice on the tax implications of your business structure and help you navigate complex tax laws. They can also represent your business in disputes with tax authorities.
Succession Planning: For family businesses or closely held corporations, succession planning is essential for long-term stability. A business lawyer can help you develop a succession plan that ensures the future success of your business and protects the interests of your family members or business partners.
Bankruptcy and Reorganization: Sometimes businesses face financial hardships that require bankruptcy protection. A business lawyer can help you understand your options for reorganizing or liquidating your business through bankruptcy or other restructuring alternatives.
Choosing the right business lawyer in Maryland requires a solid understanding of the services they provide. A skilled business lawyer can be a valuable partner in the success of your company.
How to Select the Ideal Business Lawyer for Your Situation
Experience: Look for a lawyer who has a solid track record with businesses in your industry. They should have dealt with legal issues you may face. Their experience can give you confidence in their ability to handle your business’s unique needs.
Specialization: A lawyer who specializes in business law will have a deeper understanding of laws and regulations that apply to your business. If you are in a highly regulated industry, or one that requires specific legal knowledge , a specialized lawyer can be a person who knows about the relevant laws and regulations.
Reputation: Research potential lawyers and law firms for their reputations. Seek out reviews from other professionals and clients. Ask other business owners in your field if they have recommendations. A lawyer’s reputation can tell you a lot about their abilities and how they treat clients.
Communication Style: Every lawyer has a different communication style. Some are more responsive while others might take longer to respond or to act on your behalf. Ask your potential lawyer how they prefer to communicate. Make sure their style is a fit for your needs. You want to work with someone who makes you feel comfortable and listened to.
Considerations Regarding Business Lawyer Fees
There are several pricing models frequently used by business lawyers in Maryland. The most common is an hourly rate, where the lawyer bills for a certain amount of time spent on the case (for example, $250 per hour). In some cases, retainer fees may be charged, requiring advance payment to cover projected expenses. Project-based fees are another option, where the lawyer provides a clear-cut quote for a particular task or service (such as an incorporation service, which would include filing formation documents with the state, preparing operating agreements and other startup documents, etc.). Hourly rates, retainer fees and project rates all have their pros and cons, so it’s important to talk with your attorney about their approach to billing and find out from the outset what you can expect.
Some clients make the mistake of thinking that the expense of an attorney will automatically bring inconvenient and unwanted results that positively impacts the cost/benefit ratio. – but this is not always the case. As with many things in life, you get what you paid for. This is especially true when dealing with legal matters. Because legal matters are often confusing and complex, qualifications are key to getting it right the first time. The cost of hiring a poorly credentialed lawyer can be high indeed. On the other hand, paying a high rate does not guarantee superior quality. There are plenty of highly qualified and experienced attorneys out there who offer great value for their services.
The best way to ensure you’re getting good value for your money is to do your homework before hiring a business attorney. Ask for reviews and recommendations to find out the experiences of other clients. Look for an attorney who places a high priority on open communication, timely feedback and is concerned with achieving the best possible results in your case. Keep in mind that your lawyer is an important advocate for your business, so putting in a bit more time at the beginning will pay off in the long run.
Case Studies for Hiring a Maryland Business Lawyer
Small Venture, Big Relief: A local restaurant struggles with lease negotiations. They were being pressured for a more expensive commercial space that did not suit their needs. After bringing on board a business lawyer with experience in real estate, the new lease was negotiated on favorable terms. Two years into the lease the restaurant is thriving and has begun expanding to other locations.
Corporate Governance Saves the Day: A growing tech startup begins to face growing pains. An important investor sits on the board. The board is deadlocked in a contentious meeting regarding expansion of the startup into another state. Tensions begin to rise as the investor believes his startup knowledge is being ignored . When the first CEO leaves the company, the remaining CEO brings in an attorney well versed in corporate governance to ease the board’s tensions. A third independent board member is recruited. The investor agrees to hire the attorney to mediate the board’s proceedings. Within two weeks, the board discusses their disagreements amicably and proceeds with their expansion plans.
Intellectual Property Protection Saves Money: A manufacturing company loses big after their production is halted by a business patent dispute. The company unknowingly used an existing patent in the production of wheels for bags and luggage. An experienced Maryland business lawyer is able to amicably reach a settlement for the client at a nominal cost.