Conventional wisdom says anyone who acts as his own attorney has a fool for a client. Don't believe it. Small-business owners who take the time to educate themselves - and who are honest about what they do and don't understand - can reduce their legal bills dramatically. Not only is it possible for people to help themselves legally, but so-called pro se representation is becoming increasingly prevalent. Tom Gordon, senior counsel with HALT, a Washington, D.C.-based nonprofit legal watchdog group, says the self-help trend is being driven principally by two factors: the escalating cost of legal representation and the proliferation of educational materials available in print and on the Internet. By taking advantage of the wealth of available information, Gordon says, small-business operators and others "can do a lot of things on their own."

Should you do it yourself?

Below, I'll tell you about eight areas of business operation in which you should consider handling some or all of the legal requirements yourself. First, though, a caveat: Know how to recognize when you need help, and don't be afraid to admit it. (For some tips, see this article.) Will Hornsby, a staff counsel with the American Bar Association's Legal Services Division, says any non-lawyer considering whether to tackle a legal matter should apply three tests:

• Value. There are instances when what's at stake is so small that there is absolutely no value in hiring an attorney. Does it make sense, for instance, to engage a lawyer at a rate of $200 an hour - about average for small-business representation - to resolve a dispute involving just a few hundred dollars? Obviously not. However, if tens of thousands of dollars are riding on the outcome, you almost certainly will want to seek professional assistance.
  
  
• Complexity. "The range of complexity goes from A to Z, as does the ability of people to handle that complexity," Hornsby says. "Some people can grasp concepts and argue; other people are in a fog when they have to file a couple of pieces of paper." Be brutally honest with yourself about where along this range your abilities fall.
  
  
• Consequences. If you make a mistake, will it cause a minor inconvenience or put you in a real bind? Having to resubmit a legal filing is an example of the former; losing in tax court and being at the mercy of the appeals process is an example of the latter. No one's infallible, so understand your downside risk before hiring yourself as your own special counsel.

Here's what you can accomplish

As you apply these tests over time, you'll find that certain areas of business lend themselves more readily than others to the pro se approach. The following road map is offered by Fred Steingold, a practicing attorney in Ann Arbor, Mich., and author of several self-help books in small-business law for Nolo, which has been publishing do-it-yourself legal information for more than 30 years.

1. Small claims court. This is where you'll want to take a dispute when the potential payout isn't significant enough to justify attorney fees. Most people sharp enough to run a business are capable of representing themselves in small claims court, Steingold says - if they're allowed. He points out that some states require professional representation if the business is set up as a corporation or limited liability company (LLC).
   
   
2. Business filings. It is relatively easy to establish your business as a corporation, LLC or partnership if you buy the right self-help book or software package - or if you know how to mine the Internet for free material. Considering that an incorporation filing can cost anywhere from $500 to $2,500, the do-it-yourselfer can reap significant savings. However, Steingold cautions, if a botched filing could cause serious problems - say, in the case of an ill-constructed partnership agreement - you may want to have it reviewed by an attorney.
   
   
3. Real estate transactions. This is a mixed bag. The typical commercial lease is simple enough, assuming the small business is the lessee, not the landlord. So is the zoning process, should you be a property owner seeking a change. Where you're most likely to need professional help is in the purchase of land or an office building, where such issues as the rights of pre-existing tenants can confuse matters.
   
   
4. Contracts. "Probably the typical business person could do a decent job" of drawing up such things as nondisclosure and noncompete contracts, Steingold says. But if you don't understand the language or underlying issues, call a lawyer.
   
   
5. Intellectual property. Registering a copyright is a relatively simple procedure, but patents and trademarks are trickier and may require input from a pro.
   
   
6. Major dispute resolution. Anyone involved in major litigation - especially of the criminal variety - "almost certainly needs to have a lawyer," Steingold says. The exception to the rule is when the dispute lends itself to mediation. The whole point of a court-approved mediation process is to avoid the usual legal give and take. That means no lawyers needed.
   
   
7. Buying or selling a business. While the parties to the sale can handle the negotiation themselves, a lawyer probably will be needed to review the sales contract, which can be complex, Steingold says. This is particularly true if you're buying a franchise; typically contracts covering such sales are tilted in favor of the franchisor.

Where to find help

The information you need to undertake these and other legal tasks is easy to come by. Microsoft bCentral's Legal Center, powered by FindLaw and Nolo, offers links to a variety of resources to help you research legal issues on your own as well as find whatever legal help you may need. Nolo also sells a variety of publications and software geared to the small-business owner. In addition, the BusinessLaw.gov Web site launched by the U.S. Small Business Administration provides free legal information. Many other Internet sources can be found with a search engine.

Also, keep in mind that you can get professional help without breaking the bank. It's possible to buy a lawyer's services piecemeal - it's called "unbundled representation" - rather than by the hour. Another option is prepaid legal services (for more information, see this article).

Paralegals are still another alternative to consider. Some states allow paralegals to provide legal assistance at a flat, very affordable rate. To find out if that's an option for you, plug the term "legal document assistance" and the name of your state into a search engine and see what turns up.

But wherever you live, and whatever your legal need, remember this: It just may be possible to make the law work for you without the help of an attorney.