In this series, we’ve briefly examined important issues to consider when looking for an attorney for your small business. As we already discussed, some of these issues include knowing the reasons for hiring an attorney, and knowing the types of services they offer. In the final part of this series we’ll take a look at the types of fees you may see when it comes to working with an attorney, and other areas of concern when it comes to payments. The majority of lawyers will charge a one-time flat fee for routine matters, such as forming a corporation or LLC. However, many will not necessarily volunteer this information unless you ask for it. So when you discuss your needs with a prospective attorney, ask if a flat fee is available, and if it includes disbursements, which are the lawyer’s out-of-pocket expenses, and when the flat fee payment is expected. See if the attorney requires upfront payment of this fee. Make sure that if a payment is expected upfront, you withhold a percentage (10 to 20) in case your needs are not meant or the job is not well don’t. There are various additional ways that an attorney might choose to bill you. It helps to be familiar with the language of attorney fees before you start your research. Here are some basic ways that lawyers might bill their time: Flat fee. As was discussed earlier, many attorneys will be willing to agree on a flat fee for certain routine matters, such as reviewing a contract or closing a loan. Hourly or per diem rate. For extensive services, most attorneys bill by the hour. They may bill by the day if travel is required to do the job. Monthly retainer. If you anticipate a lot of routine questions, ask if you can pay one monthly fee, which will allow you to obtain routine legal advice as needed. Contingent fee. For lawsuits or other complex matters, lawyers often work on a contingency basis. Basically, this means that if they are successful with your case, they receive a percentage of the proceeds (usually between 25 percent and 40 percent). If they fail, they receive only out-of-pocket expenses. Value billing. Some firms bill at a higher rate on business matters if the attorneys obtain a favorable result, such as negotiating a contract that saves the client thousands of dollars. This is also called "partial contingency," and isn’t recommended by business management experts. Before you meet with your potential attorney, knowing these types of payment methods will not only make you sound knowledgeable, but can give you an advantage when discussing payment methods. Most attorneys will be willing to consider options or allow for a flexible arrangement, if needed. If you need to find an attorney, you can find valuable resources through the American Bar Association, under Find Legal Help, at http://www.abanet.org
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