Surprisingly enough, one of the most important allies in independent
contracting is one of the most overlooked. This trusted friend is none
other than A. Ttorney, yes, your favorite law man. Contracting without one
of these is akin to tightrope walking without a safety net, in other words,
just plain dumb.
When should you consider getting an attorney?
Right about now. Seriously. This is a matter that you should consider when
filing your papers or choosing an accountant. You’ll want an attorney or
firm that is willing to work with a) people starting out and b) small
businesses (aka: one-man shops).
It’s essential that you tell a potential attorney about points A and B.
There is no guarantee of how much work you will bring them per year, so
this may be a potential concern.
What will it cost?
The price will depend on your attorney/firm and their level of expertise.
Some attorneys may require a deposit (I’ve seen as low as $500, as high as
$2000) that keep them on call until you need them. When a service is
rendered, they will often apply the retainer to your bill.
You should count on one of two things when it comes time to pay the bill:
The attorney may consider this an “open and shut” affair, and you are no
longer represented by the firm until you request additional representation.
That said, you will need to re-pay the retainer at a later date.
The attorney will apply your retainer to the current bill, but will require
you to “fill up” the retainer to its initial level. In other words, if you
spend $1200 of your $2000 retainer, you will need to pay $1200 to fulfill
the initial retainer requirements. In short, you pay your legal bill and
go forward with the knowledge that your company is represented 24/7.
When should I use their services?
This can be a tricky question that is ultimately up to you. For a short
freelance project, you may just wish to use a project quote with payment
terms signed by both parties. In addition, you may wish to use our favorite
term here at LAC Media: indemnify. A paragraph or two acting as an
indemnity clause *should* be sufficient.
However, for beefier projects or full-blown contracts, you will definitely
want an attorney on your side to protect your company’s interests. Figure
it this way - your client probably has an attorney working for him, why
shouldn’t you?
Where can I find an attorney?
Umm… Yellow Pages? I’ve found that attending societal conferences has
often led to meeting an attorney or some sort of legal service contact.
Otherwise, ask around. Ask us. The FHF Network (Friendz helpin’ Friendz)
can be very helpful in such matters.
In a later post, we will discuss contracts and how attorneys fit into the
equation. One of the key points, kids, is to let their attorneys do as much
of the work as possible so that yours doesn’t have to, which, in turn,
keeps more money in your pockets. Keep in mind that some clients will be
surprised you have an attorney, or don’t want to get them involved - those
are two red flags, but we’ll get to that later!