Entrepreneurship, Second Edition

12.2. Choosing an Attorney and an Accountant

Many people perceive engaging an attorney and an accountant as unnecessary expenses when beginning a new venture. However, the earlier you can consult these professionals, the more likely your business will avoid costly mistakes.

The laws in the United States do not officially recognize legal specialties. In practice, however, the U.S. legal profession has become highly specialized. Thus, most patent attorneys do very little else, and most good litigation attorneys concentrate on litigating. The representation of startups and small businesses has become a specialty as well.

Dave and Deborah would do well to ask their prospective attorney to describe her experience in representing small businesses and to supply some clients as references. An attorney experienced in the problems of startups will also be familiar with their unique cashflow problems and may be willing to work out installment payments or other arrangements to avoid postponing essential early planning.

Many of the same considerations inform the choice of an accountant. Although the level of expertise in national and international accounting firms is unmatched, most have little experience with startups such as that proposed by Dave and Deborah, since their fee structures are inappropriate for the size of such businesses. Many local firms have all the skills necessary to serve the startup and can be sensitive to its cash-flow issues.

Engage the accountant as early as possible ...