Legal costs and fees can be a significant portion of the business startup funds, but there are a few ways to reduce the impact of this investment for your small business venture. Small business startups are often hit with a high level of legal costs, administration fees, and other investments that take away from their startup expense budgets. All new business owners need to have a basic understanding of legal terminology, regulations and statutes of their district, and state tax laws. These can easily be referenced at a local library or online; its essential that any major decision involving the government-issues such as payroll, tax paying, property contracts-are handled by a knowledgeable party from the start. This in itself may reduce legal costs and fees should a situation arise.

Knowing what legal issues need to be researched or reviewed beforehand can estimate costs accurately. Saving on legal costs easier when you know what to expect, and taking care of research at the local library or online sources can reduce expensive hourly bills from a lawyer. A small business will be involved with a variety of activities as they setup and grow. The key areas of importance include:

• State statutes and regulations
• Filing forms and negotiating leases
• Creating contracts
• Hiring employees and coordinating payroll
• Human resources legalities, rules, and requirements
• Bankruptcy laws, rules, and regulations for your state
• Personal asset management or personal financial planning

Most business lawyers are billed by the hour, and this may or may not include a consulting fee to determine the need (or not) of the lawyer. It's essential that the small business owner verify what the lawyer's billing practices are, and verify when billing starts and stops, and exactly what rate. Some lawyers offer flat-fee services, making it easier to estimate the total cost.

Saving on these costs can help if you do some independent research, and follow up in detail with a lawyer only when absolutely necessary. In cases where startups do not know how to set salaries, how to work with the IRS, and where to find information on asset planning, a lawyer may not be the right contact. Many small business accountants can offer this information as part of their service, and working with a local small business development center or university that sponsors programs for small businesses is another great way to reduce costs.

Seminars and workshops offered by local lawyers are another opportunity to take part in independent learning. Many lawyer and university professors offer free or low-cost workshops throughout the year on a variety of small business topics. This can not only help you learn about contemporary issues that relate to your business, but you can adopt some valuable skills in the process.

Public resources for financial and legal assistance are readily available online, and at the public library. Reducing legal costs by learning and growing your knowledge base is a fundamental part of being a smart business owner. Online legal advice websites offer plenty of resources and information, while the local Department of Revenue office and www.IRS.gov website can also address many small business financial concerns.