Legal advice and consulting what is the difference?

Preventive legal advice is essential to protect the company and avoid problems with supervisory bodies and the courts in the future. But do you know the difference between consulting and legal advice?

Many clients have doubts about what legal consultancy and advice are and which type of service is most interesting for their business. So, to clarify and facilitate when hiring, we have prepared a special post explaining the differences and advantages of these two types of services. Check out!

The importance of preventive legal work

Even companies that are already consolidated in the market and have developed successfully started from a small business, based solely and simply on demand. Most entrepreneurs do not plan or invest in preventive practices aimed at minimizing the risks to their business.

However, as the consumer became more aware and technology evolved, today companies take much more risks when they do not invest in prevention. And one of the important measures to avoid fines, sanctions, and problems in Justice is precisely to invest in preventive legal work, which can be either legal advice or legal advice. 

In both cases, the company has direction and guidance to implement measures and protect itself, avoiding damage to its image, to its finances, and increasing its chances of success in the market.

Today most entrepreneurs are more aware that prevention is better than cure. After all, preventive legal work is an investment that avoids significant expenses with lawsuits, legal fees, and court costs. In addition, good preventive legal work can help in strategic actions that directly impact the company’s day-to-day activities and, consequently, its results.

What is legal advice?

In legal advice, the lawyer guides the client regarding a specific issue. Thus, in this type of service, the lawyer’s role is to understand the client’s problem, in order to then present appropriate legal solutions for the specific case. 

In the business sphere, legal consultancy can contribute both to identifying and solving problems, as well as assisting in the decision-making process of managers. Furthermore, with good consultancy, managers and managers have elements to improve processes within the company, in addition to, of course, avoiding lawsuits.

It is important to highlight that in legal consultancy, the lawyer does not intervene in a practical way in the company’s day-to-day activities. Your role is just to show the way and suggest actions. In general, this type of service includes the preparation of opinions, training, memos, or specific reports, such as a legal audit report, for example.

For any type of business, good legal advice has benefits. As mentioned above, in addition to providing support for the decision-making process of managers, a good consultancy offers elements to improve the company, avoid problems in the courts and identify problems even before they cause harm. For this reason, it should be seen not only as a service but also as an investment, as it brings advantages for the future of the business.

What is legal advice?

Legal advice is a very different service from consulting. In it, the lawyer provides technical assistance to the client, from the beginning of a project to its implementation. Therefore, in legal advice, the lawyer acts in an operational way, identifying the problem, proposing measures, and assisting in the execution.

There are different types of legal services that can be classified as legal advice. One of the most common examples is the role of a lawyer in all actions involving the company. In this case, it practically acts as a legal department, managing and taking steps to represent and defend the company in court. Another example is the drafting of contracts. In this type of service, the lawyer studies the company’s relations with its contractors and prepares specific documents, which protect their interests and facilitate agreements, contracts and partnerships.  

Difference between legal advice and legal consultancy

Advice and legal consultancy, although they are preventive services, are not the same thing and serve the company in a different way. As we explained, the role of the lawyer in legal advice and counseling is quite different. While in consultancy, he presents legal solutions to a specific issue, in consultancy he acts in a more operational way, participating in the solution of the problem. 

Both services have advantages and the demand is always based on the client’s needs. Now that you know the differences between legal advice and legal advice, it’s easier to choose the best service for your business needs. 

When to hire legal advice or consultancy?

There is no better time to hire legal advice or consultancy. Whenever the entrepreneur has doubts or needs support, the ideal is to consult a specialized professional. The temptation to go out doing things alone based on information collected randomly is great, however, the lack of knowledge of the legislation and basic legal rules can lead to mistakes that end up generating failures and, consequently, costs.  

Finally, if you still have doubts about what is the best legal advice or assistance, the best way is to consult a specialized office to assess the specific case and suggest the best solution. In many cases, the client starts with a legal consultancy, but when he sees the results and the demand, he ends up moving to a consultancy.