Hiring a Business Lawyer: 6 Questions That Match the Lawyer to the Problem

A lawyer handles a company’s most sensitive problems, so it’s worth making sure you get one you can trust. When you look for a corporate lawyer, you want to hire a “counselor at law,” one who can advise on how the law applies to your business. Before you hire one, ask six things:

• First, have they worked on problems like yours?
• Second, will they settle, sue, or a mix of both?
• Third, who will work on the problem, and how fast will they answer questions?
• Fourth, are there conflicts of interest?
• Fifth, how will they bill?
• Sixth, what’s their professional reputation?

The Match Matters

Your industry makes a difference. Intellectual property, franchise agreements and service contracts need special knowledge and skills. Has the lawyer worked with a company similar to yours? Ask to speak with a couple of previous clients. The lawyer may be offended at the idea, but shouldn’t be.

When the problem is debt, the match matters even more. The United States Supreme Court has ruled that a corporation or Limited Liability Company can appear in federal court only through a licensed lawyer. That means that the owner of a corporation can’t represent the company in federal court. A Chapter 7 bankruptcy discharge only applies to individuals, not corporations or partnerships.

The faster ”Subchapter V” bankruptcy, Chapter 11, only works if the total debts are $3,424,000 or less, and at least half come from the business. You have to file your repayment plan within 90 days. A sole proprietor usually must complete credit counseling within 180 days before filing. SBA loans are different. A federal agency generally sends accounts 60 to 180 days late to the Treasury’s ”Cross-Servicing” program, which can withhold or “offset” federal payments, garnish wages and turn collection over to the Department of Justice to sue.

Want a lawyer who sues or one who settles? Ask your lawyer about the ratio of the hours they spend in litigation to the time they put into settlement conferences. It’s important to hire a lawyer whose style fits your own. Lawyers who are highly litigious are sometimes hard to control when you tell them to tone down the rhetoric and settle the case.

Your work may go to a paralegal. The cheapest hourly rate may not be the lowest cost. Explaining things twice isn’t cheap, and is a prescription for confusion. Be clear who does what. How quickly do they answer the phone? Do you have to go through their paralegal? A lawyer who always wants you to wait until your next scheduled meeting before answering your question will leave you twiddling your thumbs. You want someone who can help solve problems as they come up, not a week later.

A lawyer who works for competitors or your former partners could be a problem. Do you feel comfortable sharing highly competitive information with someone who may work for the “other side” one day?

The Fewer Surprises the Bill Will Hold

The more questions you ask, the fewer surprises the bill will hold. Ask about minimum increments. For example, some charge in at least 10-minute blocks, others in full hours. Ask about billing for time researching and for work done by paralegals. Your lawyer must tell you the scope of the work and rate, preferably in writing, before or soon after they start work.

Some lawyers work for a contingent fee, an amount that is a percentage of your recovery. You have to sign a contingent-fee agreement stating the percentage and how expenses come out. But for hourly work, Clio data says the average cost of a lawyer is $349 per hour in 2025. Court costs will be on top of the lawyer’s fee. Filing fees are $338 for a Chapter 7 and $1,738 for a Chapter 11 bankruptcy. Even if the hourly rate seems high, ask what you can do to cut costs. For example, you could get documents for the lawyer or even write out a summary of events. If the lawyer won’t give you a chance to help get the job done more quickly, it may be a red flag.

Active License in Your State

Lawyers are licensed by the state. Before you hire a lawyer, look the license up on the State Bar website. Make sure they have an active license in your state, and see whether they have discipline on their record.

Ask your lawyer whether they belong to the local bar association or chamber of commerce. Solo lawyers sometimes become “monks” who work by themselves. So when you interview a lawyer, make sure you ask, “If I have an issue outside your expertise, are you willing to refer me to another lawyer to get the issue taken care of?” If the lawyer will not refer you for an issue outside his or her expertise, you may not be dealing with the right lawyer for you.