Terry A. Moore is the managing director at Krugliak, Wilkins, Griffiths & Dougherty Co. LPA, a post he has held for the past seven years. Moore is active in the firm’s corporate, banking, litigation and health care sectors.
Q. How can seeking and following legal advice save money for an average company?
Successful businesses generally do not proceed with decisions relating to major issues or projects without seeking legal assistance. Proper legal advice in the beginning will many times result in substantial cost savings in the long run. The recognition and avoidance of legal pitfalls avoid costly and time-consuming disputes with third parties and business associates, such as partners and shareholders. The temptation to minimize legal expense in making important decisions associated with a new business relationship many times results in the expenditure of significantly larger attorney fees in dispute resolution and/or litigation expense later because of poorly drafted documents or misunderstandings between the parties later due to failure to obtain competent legal assistance. An experienced and knowledgeable attorney will provide practical and legal advice that results in significant monetary benefits. The recognition of the appropriate entity selection many times results in substantial tax savings and the utilization of business expenses to reduce net income.
Q. When should a business seek legal counsel?
A business should seek legal assistance prior to proceeding with any major issue or event. A business is well served to obtain proactive advice in formulating their legal position on these issues, rather than establishing a legal position that is indefensible or poorly thought through, resulting in an adverse decision or result, which negatively impacts the financial or business performance of the company.
Q. Can a company negotiate a flat rate for some services?
A company is able, in certain circumstances, to negotiate a flat fee for services in situations where the expenditure of time and commitment is reasonably quantifiable by the law firm. The alignment of the law firm’s time and commitment with the financial interests of the business can result in savings for the business.