July 2016

July 2016
THE VALLEY BUSINESS JOURNAL
www.TheValleyBusinessJournal.com
25
by Robert B. Rosenstein
When is it Time to Consult a
Business Attorney?
One of the questions potential clients
frequently ask is, “When should I consult
an attorney?” The answer to this question
is really quite simple. A business owner
should consult an attorney early on and
should find an attorney who they can
speak with when the need arises.
What this means is that every business
owner or operator should make an
appointment with an attorney at the very
beginning of deciding to open a business,
and then keep in touch with the attorney
on a periodic basis to make sure that the
business is operating within a proper legal
framework, which will help prevent
future problems. The initial consultation
with an attorney should be at no charge
(about one half of an hour), and a potential
client should ask all the questions
of the attorney to make sure they are
satisfied that the attorney is a good fit
for them. Ask for references if you feel
it is necessary and be sure to discuss
fees. You should find an attorney who
charges reasonable fees, but remember,
don’t choose your attorney based upon
the lowest fee being offered.
Use the attorney to help you decide
how to protect yourself, your family and
your business from potential liability. If
you are not incorporated or operating
under some other form of business entity
which protects your assets, you need to
correct this immediately. Incorporation
fees can vary between $1,000 and $2,000.
Compare the services being offered and
what you are receiving for your fee. Some
firms, like ours, will have a special fee for
forming the business (either an incorporation
or an limited liability company),
as the attorney is anticipating providing
additional services in the future to the
client when the need arises.
It is important to remember, while
your accountant may be an expert when
it comes to tax planning and accounting,
do not rely on your accountant for legal
advice or for protecting your assets by
creating your business entity. While an
accountant may have your best interest at
heart, I can only relay the fact that most
corporations formed by an accountant
usually do not provide the protection desired,
and could subject you to personal
liability and loss of many tax benefits.
You would not go to a mechanic for a
medical problem, so use an attorney for
legal matters, not an accountant.
If you have not had a meeting with
an attorney since opening your business,
I urge you do so as soon as possible. If
you are seeking a free consultation, be
aware your appointment may be scheduled
for the future, as a good qualified
attorney usually has a full calendar.
Once you meet with the attorney and if
you decide to use the attorney, let them
know. Have the agreement reduced to
writing so you are not surprised by a bill,
and find out if the attorney charges for
simple phone calls.
My recommendation, when interviewing
an attorney, is to determine their
skill level and the areas that they practice
in. A good business attorney should be
well versed in general business, business
litigation, taxes, estate planning and also
have referral resources to refer you to, if
the need arises, in an area outside of the
attorney’s expertise.
Robert B. Rosenstein is an experienced
litigation attorney who also is involved in
providing business and estate planning
assistance. Robert B. Rosenstein has
over 35 years of experience in assisting
clients with over 20 years in Riverside
County. Mr. Rosenstein can be reached
at Rosenstein & Associates (951) 296-
3888, or visit www.thetemeculalawfirm.
com
connect: www.thetemeculalawfirm.com
All successful people have a vision. They have the
ability the “see” clearly what they want before it exists.
- Bill Gates, Co-founder and chairman of Microsoft Corp.
The City of Murrieta’s new web site features beautiful photos from around Murrieta. PHOTO: Cy Rathbun
www.murrietaca.gov