Is it Worth Having a Lawyer on Retainer for Your Business?

Anyone who runs her own business will probably, at some point, need to retain the services of a lawyer. Many business owners need to hire an attorney when they start (to create articles of incorporation) or review a commercial lease agreement, contracts, or other legal documents. Some businesses require legal advice on a regular basis. But is it worth your while to pay a monthly fee for such services? The answer partly depends on how frequently you need legal advice. Here are a few pros and cons to consider.

Pros

Possibly the biggest advantage of having an attorney on retainer is the fact that paying an attorney a monthly retainer fee entitles you to priority service when it comes to obtaining legal advice or having documents drawn up. Being at the front of the queue means your legal work will be performed more efficiently and with less hassle. You won’t have to look for a competent lawyer every time you have a legal need or wait for an attorney that you work with on an ad hoc basis to finish a task for someone else. Of course, there is a catch to this as retainers can be expensive and you still have to pay monthly, even when you don’t use any legal services. Some attorneys construct retainers so that you pay the fee upfront for a specified period of time. You need to ask them questions similar to ones you would ask any service provider like what services are included in the retainer, what services aren’t included, and how fast they will respond to you.

Cons

Disputes over what is included in retainer services or the scope of those services are a major drawback of keeping legal advice on retainer. The way to avoid such disputes is to make sure that both sides are clear on what the retainer includes. If you don’t pay your retainer over a dispute, you could be subject to additional non-payment fees. These disputes often happen because attorneys and clients sometimes avoid talking to one another. If you overestimate your need for legal services, you will be stuck with paying for the length of the contract.

Determine what your monthly or annual legal needs are before you sign up for a retainer with a lawyer and carefully assess what you will use. If you have a long working relationship with an attorney, getting legal advice on an ad hoc basis may be more economical. Be sure to consider your situation carefully before making your decision so you can make sure to do what is in the best interest of your business.

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