In my last blog post, I concentrated on the importance of a specific question an attorney should ask their client before forming a business for them. In this entry, I’ll concentrate on what a client should ask their attorney. Many questions come to mind, but I’ll focus on which questions a client should ask an attorney before hiring them to form a business entity for them. The first question I believe every client should ask their prospective attorney is what kind of experience the attorney possesses. It might sound awkward, but a client should feel comfortable with the experience level of their attorney. A client’s confidence in an attorney comes from the confidence in the attorney’s ability to do the job they’re being asked to do. It’s a fair question to ask, whether the attorney has formed that type of business before is important.
The second question a client should ask their attorney is who exactly will be performing the work. Many firms have associates, interns, and paralegals that can handle the business incorporation paperwork. The attorney might not know who in particular will be drafting the operating agreement/corporate by-laws. If the attorney will be performing the work themselves, that information can really put a client at ease by putting a face to the work being performed.
The third and final question a client should ask their attorney is what, in exact terms, they will be receiving for the amount they’ll be paying for their business incorporation. It’s almost like sticker shock when a client receives a bill for services rendered, when those services cost substantially more than what they were expecting. A client should ask for a detailed breakdown of the costs associated with the incorporation. Ask whether the flat fee will include the incorporation fee (usually around $105), a corporate binder and seal, even postage.
These questions should be ones that a client should start their first conversation with a prospective attorney before hiring them to form their business entity. There are many questions that a client should ask of their attorney: but these are a few of the questions a client should make sure that they ask.
Good Luck, and if you’re interested in discussing this matter further or if you have questions about filing for the formation of a California business entity, a dissolution, please contact my office at 1-844-695-1487. I appreciate the opportunity to answer your questions and concerns.
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