Find a lawyer to represent your business

When setting up your own business, finding a lawyer isn't usually top of your to-do list.

Yet getting the right legal support - from setting up the right company structure to initial employment contracts - can prove vital in the early stages of a start up.

Knowing how to find a lawyer can help you avoid legal issues as your business grows.

Many small business owners initially take a do-it-yourself approach to legal issues.

Using off-the-shelf templates for business contracts can be an economical way to get started.

However, trying to understand or solve legal issues by yourself can cost more in the long run than seeking professional legal help.

According to an Legal Services Board report, small businesses lose around £40bn each year due to legal issues - many of which are avoidable.

Why you should find a lawyer for your business

A lawyer can help your business in a number of ways including:

• Setting up your business - Legal advice is important in the early stages of a business start up, such as choosing the best structure for your business. Contractual agreements between shareholders should be professionally drafted.
• Trading licences - Business owners can apply directly for licences covering street trading, selling alcohol and operating food premises. However, certain licences, such as overseas trading, require advice from a specialist licensing lawyer.
• Property and premises - Legal advice when signing rental leases or buying or selling premises is essential. Commercial property law can be complex, so get a solicitor to look over any contracts you sign.
• Hiring employees - Employment legislation is extensive, with hefty penalties for getting it wrong. A solicitor can help draft employment contracts and ensure you're aware of your legal obligations as an employer.
• Contracts - While it can be tempting to repurpose existing contracts or simply sign contracts with suppliers or clients, it's worth getting legal advice to ensure your business isn't left open to unacceptable liabilities.
• Franchises - Entering into a franchise agreement or franchising your business requires legal advice. Understanding your legal obligations and putting in place favourable terms when franchising is essential.
• Raising capital - Many start ups and small businesses need capital to grow their business, either through debt or equity financing. 
• Protecting your business - It's important to find a lawyer to ensure that your business and brand are protected or defend your business should it be subject to legal action. Obtaining patents or trademarks may require the help of an Intellectual Property (IP) lawyer.

The importance of ‘good’ legal counsel

While it may be tempting to cut corners and rush to find legal counsel without adequate research, remember that your chosen lawyer will be interacting directly with your investors. 

You certainly don't want to waste their time or create unnecessary complications.

More importantly, decisions made on your behalf in legal documentation could prove detrimental if they weaken your negotiating position in future funding rounds or expose you to challenges on critical terms.

Therefore, it's essential to seek counsel with appropriate experience in your specific sector or transaction type.

What you need is the highest quality legal advice within your budget. 

Think of it as an investment in your company's future.

What constitutes quality legal advice?

Quality legal counsel refers to lawyers who possess the combination of expertise, experience, and professional attributes necessary to effectively serve their clients' needs.

Quality legal counsel delivers substantial benefits that extend far beyond document drafting:

Validation

Respected legal firms are selective about their clients. Being represented by such a firm signals professionalism and credibility, potentially boosting your reputation and making your business more attractive to partners and investors.

Cost efficiency

While you may pay higher fees upfront, experienced lawyers typically save you time and money through efficient negotiations and by helping you avoid costly pitfalls. 

Ideally, your lawyer will understand your business model, know standard investor terms, and grasp the nuances of your market sector.

Strategic business guidance

The best start-up lawyers become trusted advisors who understand your business and provide strategic guidance that extends well beyond legal technicalities.

Access to networks

Experienced lawyers at respected firms often have extensive networks within your industry. 

They can facilitate introductions to investors, partners, and consultants they personally recommend, potentially opening doors that would otherwise remain closed.

Choosing the right legal counsel isn't just about getting documents signed—it's about building a foundation for sustainable growth and successful fundraising.

How to find a lawyer to represent your business

While heading straight to the nearest high street solicitor is tempting, it pays to look for an experienced corporate lawyer.

Many solicitors specialise in specific industries or types of legal issues, such as employment law and corporate contracts.

Referrals and recommendations by business associates and your local British Chamber of Commerce is a good starting place.

Your accountant may also be able to recommend a lawyer.

Many accountants have professional relationships with law firms that they can introduce to business clients.

Alternatively, the Law Society offers two ways to find the right solicitor for your business.

• Online directory - If you live in England or Wales, head to the Law Society's Find a Solicitor website and search under ‘Company and Commercial' to find details of your nearest business solicitor. The Law Society has a database of over 175,000 legal professionals to choose from. Alternatively, use The Law Society of Scotland or The Law Society of Northern Ireland.
• Lawyers for Your Business - The Law Society runs a scheme for small business owners that puts you in touch with a local solicitor who will talk through your legal issues in a free 30-minute consultation. You call the helpline on 020 7405 9075 or email [email protected] including details of your postcode or town/city to receive a list of firms in your local area who are members of the scheme and can help.

Find a lawyer checklist

Once you've identified suitable candidates, you'll need to hone your choices.

It's worth ensuring a good match with your business needs, although you can always change law firms later if the arrangement doesn't work out.

• Expertise - Make sure the solicitor has the expertise you need. Corporate lawyers will be able to help with most aspects of running a business, but you may require a specialist in employment or IP law.
• Reviews - Read online reviews of the law firm or individual solicitor.
• Testimonials - Look on their website for testimonials from similar clients. Ask what types of clients they have and if they can provide any testimonials.
• Pricing and outcomes - Find out their pricing structure and estimated costs of resolving a particular legal issue, such as the typical cost of creating a contract. If discussing a particular issue, ask them to provide a range of options for resolving the problem and your chances of achieving your desired outcome.

When finding a lawyer, it's a good idea to arrange a face-to-face consultation.

Some law firms offer cheap or free initial meetings so that you can find out whether they can provide the right help for you.

To help your decision when choosing between two or more solicitors consider how helpful they've been in giving information and advice.

Check that they fully understood your problem and assess how confident you feel in their handling of your business.

How much will a lawyer cost?

As with most services, legal costs depend on what services you need and how complex they are.

Ask upfront what the likely fees are going to be. 

Solicitors must provide an estimate of likely charges and keep you informed of any changes in that estimate.

Most solicitors charge by the hour.

Alternatively, you may be charged a flat fee for work such as reviewing a contract.

Some lawyers will offer fixed price or monthly retainer options.

Solicitors' fees should be ‘fair and reasonable', so ask for a breakdown of costs if you don't understand a bill.

How to work effectively with your lawyer

Here are a few suggested do’’s and don’ts that should ensure you and your lawyer work effectively together from the very outset.

Here are practical guidelines for working effectively with your startup lawyer:

Do:

• be prepared and organised: come to meetings with clear agendas, relevant documents, and specific questions. This maximises the value of expensive billable time
• provide context about your business: help your lawyer understand your industry, business model, and strategic goals. The more they understand your business, the better advice they can give
• ask about alternatives and trade-offs: instead of just asking: "Can we do this?”, ask: "What are our options here and what are the pros and cons of each?"
• set clear expectations about timing and budget: Be upfront about deadlines and budget constraints. Most lawyers can work within parameters if they know them upfront
• use your lawyer strategically: focus their time on high-value, complex issues rather than routine tasks you could handle internally or with cheaper resources
• build a relationship over time: consistency with legal counsel pays dividends - they learn your business and can work more efficiently.

DON'T:

• wait until the last minute: rushing legal work leads to higher costs, more errors, and weaker negotiating positions. Plan ahead whenever possible
• micromanage the process: once you've given clear instructions, let them do their job. Constant check-ins waste time and money
• shop around constantly: switching lawyers frequently means paying for new counsel to get up to speed each time
• assume they understand your business priorities: be explicit about what matters most to you - speed, cost, risk mitigation, investor relations, and so on
• use lawyers for business strategy: they can advise on legal implications, but fundamental business decisions should come from you.
• be afraid to ask ‘dumb’ questions: it's better to understand what you're signing than to nod along and regret it later.

The best founder-lawyer relationships are partnerships where clear communication and mutual respect enable efficient, high-quality work.