WHEN TO CALL A LAWYER
Legal matters can be daunting for any organization, whether you’re a small business, nonprofit, or church. Many leaders avoid seeking legal counsel until an issue arises, but having the right legal support from the beginning can save time, money, and stress. Here’s what you need to know about working with lawyers and ensuring your organization is legally sound.
When Do You Need a Lawyer?
The short answer: from day one. Legal considerations begin with structuring your entity properly, creating employment agreements, and drafting customer or membership contracts. Without these foundational documents, organizations leave themselves vulnerable to legal disputes and compliance issues.
A good lawyer will help you:
Establish and maintain proper legal structure.
Draft essential agreements and contracts.
Navigate disputes, collections, and potential lawsuits.
Ensure compliance with state and federal laws.
How to Find the Right Lawyer
Many people turn to Google when they need legal assistance, but the best way to find a trustworthy lawyer is through referrals. Ask other business owners, church leaders, or nonprofit directors about their experiences and who they recommend.
Avoid hiring a lawyer from a billboard or online ad. Instead, look for someone with:
Experience in your industry.
A strong reputation among peers and clients.
The ability to explain legal matters in a way you understand.
A network of specialists they can connect you with when needed.
Maximizing Your Legal Support
Many organizations hesitate to hire a lawyer due to cost concerns. However, legal assistance doesn’t always mean hourly billing. A lawyer will typically only charge when they perform actual work for you—not just for having them on standby. Here’s how to make the most of your legal relationship:
Build a relationship early. Find a lawyer before you urgently need one.
Discuss billing expectations. Many lawyers offer project-based fees rather than unpredictable hourly rates.
Use their expertise wisely. Have them review contracts, agreements, and employment policies to avoid issues later.
Legal Must-Haves for Churches and Nonprofits
Churches and nonprofits have specific legal needs that differ from for-profit businesses. The most critical legal documents include:
Formation Documents: Churches need a constitution; nonprofits need bylaws.
Employment Agreements: Protects both employees and the organization.
Insurance Policies & Legal Representation: Ensures protection in case of claims or disputes.
A lawyer with experience in the nonprofit sector can ensure these documents are tailored to both legal requirements and spiritual or mission-driven values.
What’s the Biggest Legal Risk for Small Businesses?
For small businesses, employment law is a major risk area. A lawsuit from an employee or an audit by the Department of Labor can have significant financial consequences. Protect your business with:
Well-drafted employment agreements.
Clearly defined contractor relationships.
Proper insurance coverage.
Thoroughly reviewed vendor contracts.
Take Action Today
If you don’t already have a lawyer you trust, start looking now. It won’t cost you anything to establish a relationship, and it will ensure you’re prepared when legal issues arise. Having legal counsel isn’t just about protection—it’s about positioning your organization for long-term success.
Need guidance? Dime offers legal support and can connect you with experienced legal professionals to meet your needs. Take the first step in securing your organization’s future today.