What Are Legal Support Services?

What are legal support services?

Legal support services help small business owners achieve their goals with expert advice and skilled representation. It is best to have law support on your team before problems arise so your business is taking the proper preventative measures to avoid legal disputes. 

Legal professionals can assist companies with general or specific business-related legal issues. The type of business you conduct will reflect the legal services you’re most likely to need. Here are a few examples of legal services businesses often require:

• Choosing a business structure: Don Worley, president and managing attorney at McDonald Worley law firm, said an attorney should be consulted before forming your business to choose the best type of legal entity for liability protection. “This will help protect you should something go wrong with the company, such as a lawsuit or bankruptcy,” said Worley.
• Drafting contracts and agreements: Creating legal and binding contracts and agreements with business partners, clients and vendors is an important part of your business operations. An attorney can help incorporate the proper legal language to protect your interests, especially if you’ve formed a business partnership. “[A lawyer can ensure] each person’s role and shares [are] clearly defined in the partnership agreement to avoid disagreements in the future,” said Worley. 

Mike Schmidt, an attorney and founding partner at Schmidt & Clark LLP, added that a lawyer can ensure your agreements are clear, enforceable and aligned with your business goals. “Without proper legal input, you might miss out on critical clauses that could safeguard your business or, worse, agree to terms that could put you at a disadvantage,” he said.

• Navigating regulatory compliance: Depending on your industry, your business may be required to follow local, state and federal regulations that govern everything from licensing and labor laws to operational reporting. A legal expert can help keep your business in good standing and avoid legal penalties, explained Schmidt. “They can assist in interpreting regulations, preparing necessary documentation and implementing practices that adhere to the law,” he added.
• Handling human resources (HR): There are many HR compliance legalities surrounding the hiring and firing of staff. Without the right legal protections in place, your business can be open to lawsuits. A lawyer can also help you manage any employee harassment and discrimination claims that occur within your business.
• Protecting intellectual property: If you have a logo, trademark or sensitive intellectual property, work with legal support services to avoid violating any copyrights as well as protecting yourself from anyone infringing upon your copyright. “Seeking guidance on safeguarding trademarks, copyrights and other intellectual property assets is essential for maintaining an advantage in business,” said Robert Scott, an attorney and co-founder of Monjur, a cloud-based, artificial intelligence-powered legal solution.

If you’re unsure whether you need the help of a legal support service, Mark Wilhelm, a partner in the corporate practice at Troutman Pepper, recommended asking yourself, “If I get this wrong, will I still have a company?” 

“If the answer is ‘no,’ then [you] need a lawyer,” Wilhelm said. “However, many matters that fall short of ‘bet the company’ decisions need a lawyer as well.” Wilhelm added that a lawyer should be involved if your company is making any ownership changes or entering into a large or important contract, as well as if you’ve been asked to sign a document with a provision or clause you don’t understand.

Why should you use legal support services?

The most obvious and important reason to have a go-to legal professional for your small business is to identify and avoid potential legal issues before they become serious problems, said Schmidt. “[An attorney] helps in ensuring compliance with various laws and regulations, which can save you from potential fines, penalties or legal disputes that could threaten the stability of your business,” he added.

However, an attorney can help with more than just crises. Here are a few benefits you’ll get when you hire a legal professional for your business:

• Personalized guidance for strategic business decisions and deals: Schmidt noted that a lawyer’s involvement can be invaluable in strategic decisions like structuring business deals, protecting intellectual property and managing employment issues. “A lawyer who understands your business can help you draft contracts that safeguard your interests and advise you on the implications of various business decisions,” he said.
• Expertise in navigating industry-specific challenges: Scott said a legal professional’s expertise can help your business stay up to date with current industry and regulatory standards. “In sectors like IT-managed services, small businesses encounter challenges that can be effectively managed with specialized legal support,” said Scott. “This ensures compliance [and] safeguards them against potential legal challenges.”
• A trusted advisor and resource: According to Wilhelm, a good business lawyer should be someone you can go to both for legal advice and as a sounding board for important non-legal decisions. “Experienced lawyers, in particular, are able to answer many common questions quickly and cost-efficiently,” he said.

Good law firms are also well-connected and can put you in touch with other clients and professionals in their network if a mutually beneficial opportunity arises. “Building a strong working relationship with a trusted advisor and then leveraging that working relationship can pay huge dividends for a company,” said Wilhelm.

Tips on choosing legal support services

It’s best to hire a lawyer before any issues arise. More protections are in place if you have an attorney in place before a situation like a business lawsuit occurs. Here are some tips to help you narrow down your options and select the right legal service for your business.

Research your options.

Take time to research support options before hiring any type of legal counsel. The most important thing is to confirm that the legal team is licensed to provide services in your state. Once you’ve confirmed this, you’ll want to consider whether you want an in-person attorney or an online legal support service. 

Online services are often free or low cost but may not provide adequate coverage. Some online service providers offer one-time legal counsel, or they can be hired for ongoing needs. In this case, you pay a monthly fee for access to legal support options like unlimited attorney consultations. 

“Seek out pricing models that allow small businesses to access top-notch legal services without breaking the bank,” Scott said. He also recommended looking for a service that can adjust to your business’s changing size and scope without compromising quality or compliance standards.

Consider the attorney or firm’s experience with your type of business.

Schmidt said one of the most important things to consider when choosing an attorney is their track record with businesses of your size and type. For example, as a startup, you might want to look for a legal service that has helped other new businesses navigate issues like funding rounds and equity agreements. 

“A legal team with experience handling small to midsized businesses will understand the specific challenges you face, such as limited resources or unique industry regulations,” Schmidt said. “They’ll be familiar with the common pitfalls and can offer tailored solutions that align with your business’s scale and needs.”

Wilhelm noted that lawyers have become increasingly specialized, so it’s rare to find a lawyer who is truly an expert in every industry or area of the law. He advised doing your due diligence and finding a legal support service that can serve as a trusted advisor.

“[A good firm will] know and inform their clients of the lawyers’ limitations and also assist clients in forming a network of advisors for specialized questions and advice,” said Wilhelm.

Meet with potential lawyers before hiring.

When choosing your business lawyer, set up phone calls and meetings with every option. This person will likely have access to the most sensitive aspects of your business. They should be someone you trust and feel reasonably comfortable with. If taking recommendations, only consider lawyers suggested by people you trust who have worked with their lawyer for a long time. 

Treat these meetings like an interview where you are doing the hiring; prepare a list of questions pertaining to their time practicing law, their availability, when and how they will update you on legal matters, their fees and what is included in these costs. Just like in any other interview, stay away from someone who avoids answering any of your questions or rushes through your meeting.

If you are seeking legal counsel in a particular matter, bring any information and documentation you have relating to the issue. Make sure the lawyer understands your needs and can make recommendations on how to move forward. Ask them if they have worked on similar cases or if they are familiar with the forms you’ll need in the process. 

Interviewing law firms is a good way to get a sense of their approach to client relationships. Schmidt advised looking for a legal support service that provides personalized attention and treats your business as more than just another client in a large portfolio.

“They should be committed to investing time in understanding your business’s unique circumstances and offering advice that is not only legally sound but also practical and actionable,” he told Business.com. “This personal touch ensures that the legal strategies they propose are tailored to your specific business goals and challenges, rather than a one-size-fits-all approach.”

Sean Peek contributed to this article.