Does my lawyer need to be licensed in the state where I buy a business?

December 18, 2020

by a professional from University of Minnesota - Twin Cities Campus in Minneapolis, MN, USA

I've heard it both ways from preliminary conversations with lawyers - some say they can't work outside a state where they are licensed, and others (some who I see comment on this site) are more than willing to work deals in any state.

Should I wait to identify a target business, and then find a lawyer licensed in that same state, or should I establish a relationship now with a lawyer who is willing to work wherever I find a deal?

0 Likes

9 Replies

102 Views

Replies

Reply by a professional
from William Mitchell College of Law in Minneapolis, MN, USA

The rules about when a lawyer can help with a deal in a state where they are not licensed vary state by state so there is no easy answer (just like a lawyer...) The American Bar Association Model Rules (Rule 5.5 for those in need of sleep) would tend to allow lawyers licensed in one state to do a deal for a client in another state. But not every state has adopted those rules. I would say find a lawyer who you trust can do the work and ask them if they can help you in the state you need. If they cannot help you, they should be able to help you find a lawyer (preferably one also on SF) who can help. Most deal lawyers are willing to do deals in any state provided there is a way for them to work under that states’ rules. Hope that helps.

Reply by a searcher
from University of South Florida in Miramar, FL, USA

Cultivate the relationship. It doesn’t matter in most cases for your first deal since it’s probably under 10M. If you want to achieve success as soon as humanly possible it’s about multiple moving parts. Message some guys on LinkedIn, interview them over the phone. That’s won’t take more than 5 hours altogether while you continue your search rather than waiting and extending your time toward success by another 5 hours. It can be a long road out here maximize your time. You’ll thank yourself later.

+7 more replies.

Join the discussion