At some point, every business owner needs a good attorney. These legal eagles are essential when navigating increasingly complex business issues, such as launching a business or dissolving one. There's no doubt that hiring a lawyer is expensive. However, not hiring a lawyer can cost you far more. A good attorney can help you with a number of common small business issues, such as:

1. Business formation laws
2. Contract laws
3. Employment laws
4. Consumer protections laws
5. Finance and tax laws
6. Intellectual property laws

Action Steps
The best contacts and resources to help you get it done

Decide which type of lawyer you need

Are you looking for help with starting a business or setting up your company's legal structure? Or is it a contract, licensing agreement or employee lawsuit you need help with? Business lawyers specialize in specific areas, such as finance, real estate, intellectual property, employment, the Internet and general business.

I recommend: The "Find a Lawyer" search engine at Lawyers.com lets you select the type of business lawyer you want from an extensive pull-down menu that includes detailed sub-specialties within major categories. Or search for an attorney who specializes in small business law at SmallBusinessLawFirms.com.

Verify licensing and rating

See how lawyers you are considering measure up using the Martindale-Hubbell's Peer Review Ratings. The organization sends confidential questionnaires to other lawyers and judges to evaluate an attorney's ability. Lawyers are rated with a C (good to high), B (high to very high) or A (very high to preeminent).

I recommend: Verify licensing at the American Bar Association (ABA) Web site by clicking on your state and then on "Lawyer Licensing." When searching for lawyers at Martindale.com, click on the option to view "Featured Peer Review Rated Only" to see the ratings.

Investigate any disciplinary actions

Ensure that a lawyer is in good standing and free of any disciplinary or administrative actions that may affect their eligibility to practice law.

I recommend: Consult the ABA's Directory of Lawyer Disciplinary Agencies to contact your state agency with inquiries about the lawyers you're considering.

Small fry vs. big guy

One major consideration: whether to go with a small or large firm. Large firms generally are more expensive, but they have mighty connections and wide-ranging legal skill sets. Conversely, you may receive more attention from a small firm.

I recommend: Find major law firms listed in Vault.com's Top 100 Most Prestigious Firms. Small firms are featured within the online pages of Law.com's Small Firm Business.

Consider fees

Lawyers use a variety of billing methods, including hourly billing, flat rate, monthly retainer and contingency fee. Choose a lawyer who will give you a written estimate on costs for routine business services, such as reviewing contracts.

I recommend: Reduce fees by doing some of the legal legwork yourself. Download common business forms and contracts from AllBusiness.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Interview candidates in person to assess availability, compatibility, expertise and communication skills. An initial consultation is normally free.
• •  Don't confuse supportive attorneys with well-grounded expertise. Good ones should have both qualities.
• •  Make sure you won't be passed around to other attorneys, especially if you use a big law firm.
• •  Avoid hiring relatives or friends. They may not be the best choice.
• •  Discuss availability by discussing how much time you need and whether a lawyer can meet those needs.