News--An Orientation
Many people have asked me in conversation, "How do lawyers work and how do I know what qualifications an attorney should have if I need to retain one for help?"
The word, "attorney" means a person who is licensed by the State and who is authorized by law to act on behalf of another. It literally means a person qualified pursuant to the law as someone to whom one turns for consultation or for assistance with a legal matter. Qualification to practice law in most states requires graduation from a four year college or university, successful application to and graduation from an accredited law school (full time for 3 years), successful completion of the Bar Examination and approval of an application with background investigation to practice law by the Supreme Court of the State.
However, there typically are no prescribed set of undergraduate courses or degree majors required to gain entrance to a law school and law school classes are focussed on legal subjects rather than matters of business training.
When you are seeking help in a personal matter such as an estate plan or in business organization planning or on a business related matter, in addition to the licensing qualifications, it is important that the attorney you select has been educated in and is experienced in working with both the business topics and law involved. This combination is the most beneficial to you because it better allows for anticipating future problems and permits preventive planning. For example, these concepts apply in: business and tax aspects of wills and trusts, business formations, day to day operations, policies, contracts, employment relations, environmental compliance of operations, finance, practical problems of licensing of intellectual property and in complying with government regulations. Relevant experience is also true in the strategic and tactical management of any legal project or dispute and in the avoidance of expensive litigation, whenever practicable. If not, then experience litigating the type of case is important.
From the outset of your relationship, the Attorney-Client Privilege applies. This rule of evidence law provides that neither the attorney nor the client can be compelled to disclose the communications that pass between them whether in writing, the spoken word or as written work product of the attorney, excluding, of course, a conspiracy to commit or to conceal a crime.
Once admitted to the Bar, attorneys are subject to Rules of Professional Conduct including the establishment of client trust accounts for the handling of client funds. Some states do not require that an attorney have a written retainer agreement with a client. However, good practice management does so I do. It serves to clarify the scope of services to be rendered, the payment amounts and arrangement and clarifies the responsibilities of the parties. The amount to be charged by the attorney is generally based on an hourly rate, or if feasible for the type of matter involved will be stated as a fixed fee barring unusual developments. Some attorneys as a courtesy do not charge for a portion of the time they devote to the first meeting with the client.
When preparing to meet with your attorney, first write a summary of the facts of your problem or state the goals of your plan. Use this outline when discussing the facts of the matter with the attorney to be as thorough as practicable. Expect that your attorney will have questions, because the attorney will look at the matter from several different legal perspectives as the analysis proceeds. To an attorney, accurately defining the factual issues, understanding your goals and the supporting evidence available are critical to an analysis of the applicable law and to finding the path to the best solution for you. Contact us with your questions at: (360) 756-1506.
Best regards,
Hal
NEW LAW: Second Engrossed Substitute Senate Bill (2ESSB) 6143, Part VII, (chapter 23, Laws of 2010 1st Special Session) ("the legislation") clarifies that:
1) Corporate directors, while acting in that capacity, are not considered employees of the corporation on whose board they serve; and
2) Amounts received by an individual from a corporation for service as a member of that corporation's board of directors (director fees) ARE subject to the B&O tax effective July 1, 2010. Comment: This law draws a distinction between the roles of paid Employee (no taxable event) and Paid Director (now taxable).