50
50 Years of Legal Experience
CPA since 1970
Lawyer Since 1973
30+ Years of Entrepreneurial Experience
Direct Attorney Access
Business Legal Counsel for Consultants and Consulting Firms
Legal strategy should reflect the transaction, the commercial relationship and the owner's long-term goals.
Form the Consulting Business Properly
A consultant may operate as a sole proprietor, LLC, corporation, or professional entity, depending on the services, state law, and tax planning.
Arthur helps consultants evaluate entity options, prepare governance documents, and coordinate the tax classification decision with their accountants.
Consulting and Professional Service Agreements
The engagement agreement should establish the scope, assumptions, client responsibilities, fees, payment timing, expenses, deliverables, change procedures, and termination rights.
It should also address confidentiality, intellectual property, liability, and the client’s use of recommendations.
- Master services agreements and statements of work
- Project-based and retainer consulting agreements
- Independent contractor agreements
- Payment, deposit, and late-fee provisions
- Change requests and additional services
- Confidentiality and data access
- Ownership of reports, software, content, and work product
- Limitation of liability and indemnification
- Termination and transition assistance
Protect Intellectual Property and Work Product
Consultants often use pre-existing methods, templates, software, processes, and know-how. The agreement should distinguish the consultant’s background materials from new work created for the client.
Arthur helps define ownership, license rights, and permitted reuse so the contract reflects the intended commercial relationship.
Reduce Payment and Scope Disputes
Consulting disputes often involve unclear deliverables, expanded scope, delayed client input, or unpaid invoices.
Clear written procedures for approvals, changes, milestones, and suspension of work can improve expectations and provide a stronger record if a disagreement arises.
Plan for Professional Risk
Consultants may face claims involving negligence, omissions, misrepresentation, or failure to meet expectations. A contract can help allocate risk, but it does not replace appropriate insurance.
Arthur can help identify contract issues and may refer clients to qualified errors and omissions insurance professionals.
Frequently Asked Questions
Do independent consultants need a written agreement?
A written agreement is strongly useful because it defines the service, payment, ownership, confidentiality, and limits of the relationship.
Who owns the work created for a consulting client?
Ownership depends on the contract and applicable law. The agreement should clearly address pre-existing materials, new work product, and any license granted to the client.
Can a consultant limit liability in a contract?
Liability limitations may be possible, but enforceability depends on the language, law, and circumstances. The provision should be reviewed as part of the full agreement.
Should a consultant form an LLC?
An LLC may provide organizational and liability benefits, but the decision depends on the services, risks, ownership, and tax considerations.
Can Arthur help with a client who is not paying?
He can review the agreement, invoices, and communications and advise on business law options. A collection lawsuit may require separate litigation counsel.
Put Clear Terms Behind Your Consulting Expertise
Your contract should support the way you scope, perform, and bill for your services.
Contact Arthur to discuss your consulting business or request review of an engagement agreement.
