Latrice Smith Of Thomas Law & Consulting On The Top 5 Mistakes Businesses Make Without Legal Counsel
An Interview With Chad Silverstein
Waiting for the Perfect Moment to Start
In today’s fast-paced business world, the complexity of legal matters can often be overlooked, leading to significant repercussions for businesses of all sizes. From startup ventures to established corporations, the absence of legal guidance can result in critical errors that affect growth, operations, and sustainability. These mistakes range from issues with contracts and intellectual property to compliance and employment law, each carrying the potential for financial loss and reputational damage. I had the pleasure of interviewing Latrice Smith.
Latrice Smith, Esquire, MPH, is a dynamic entrepreneur, lawyer, and keynote speaker. Raised in Mississippi by a family of medical entrepreneurs, she earned her Master of Public Health followed by a law degree from Atlanta’s John Marshall Law School. Founder of Thomas Law & Consulting, beem® Light Sauna Atlanta, and Mechanical Piping Solutions, Latrice is also a devoted wife and mother. Latrice electrifies audiences, blending her professional expertise to ignite action and inspire lasting change.
Thank you for joining us. To start, could you share your “origin story” with our readers? How did you begin your career? What challenges did you face in the early days? How did you overcome them?
My origin story started with me being surrounded by a family of medical entrepreneurs while living in Mississippi. Growing up, they instilled a strong work ethic in me while I discovered I had a passion for problem-solving. My journey in my career began when I took action on my passion. I obtained my Juris Doctor and my Master of Public Health. Upon achieving this, I pursued a government position where I felt I could contribute to meaningful change. However, life threw me a curveball when I was unexpectedly let go from that role. It was a challenging moment, but instead of viewing it as a setback, I saw it as an opportunity. Encouraged by the inspiration from my upbringing and the resilience I witnessed growing up, I pivoted. I leaned into entrepreneurship, combining my legal expertise with my understanding of healthcare to create Thomas Law & Consulting, LLC. This was a great accomplishment for me, but I did not stop there. On my journey, I met my husband, became a CEO with him for Mechanical Piping Solutions, and joined a franchise as an owner of beem Light Sauna.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
There are two books that made a significant impact on me. The first book is Onward: How Starbucks Fought for Its Life Without Losing Its Soul by Howard Schultz. It is a narrative about obtaining one of the top brands in the world — Starbucks — and the journey of determination to rebuild it into the successful business it is today. The transparency Schultz expressed regarding his struggles during his journey, especially with raising capital and keeping the company afloat, was truly inspiring. His commitment to prioritizing the needs of the employees and creating a strong company culture reinforced the value of value-driven leadership.
Another transformative book for me is Wayne Dyer’s Excuses Begone! A dear friend gifted me this book during a pivotal moment while I was in law school, and the message shifted my perspective tremendously. This book emphasizes personal responsibility and the importance of taking action. At the time, this was exactly what I needed to hear. It challenged me to limit excuses and to navigate the challenges I faced with clarity and purpose. My takeaways from these two books have played a significant role in shaping my perspective and approach to both business and personal decisions. As a leader, these books have certainly strengthened my leadership skills in all my business endeavors.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
My favorite life lesson quote is Carpe Diem, which translates to “seize the day.” This philosophy has kept me grounded throughout my career journey, especially in times of uncertainty. There have been many instances where I was uncertain about how a scenario would unfold. However, this quote has resonated with me because, early in my career, I faced a significant challenge when I was uncertain about what I would do after experiencing a setback.
After law school, I secured a government position as an attorney. I was super excited about the role, and I felt comfortable. However, life had other plans, and I was suddenly let go from the position. Instead of panicking about what I was going to do with my life, I chose to use that curveball as an opportunity to seize the day. With this mindset, I was able to achieve multiple goals and establish several businesses. Today, I still carry this mindset with me to remind myself to always find an opportunity in any circumstance.
How have you used your success to make the world a better place?
Success is more than just a personal achievement; it’s about how you can use your platform and experience to create a positive impact on others in the community. I am proud to have the opportunity to help founders realize their vision. I have dedicated myself to guiding founders through the essentials of building strong businesses that are not only financially stable but also long-lasting. I assist founders in taking their vision and amplifying it into a reality so they can contribute to their communities as well. Ultimately, I believe that when founders thrive with a clear vision, they have the power to make a positive change.
Ok, let’s now turn to the central part of our interview. What is the most common legal mistake you see businesses make due to the lack of proper legal counsel, and what are its potential consequences?
The most common legal mistake I see businesses make stems from errors in the very beginning, during the inception phase, and it often continues into critical areas such as contract signing. Many founders underestimate the importance of securing proper legal counsel when engaging with partners, investors, clients, and vendors. A strong piece of advice I always give is that representation matters at every stage of your business, especially when forming partnerships or entering agreements.
Every transaction that binds your organization — whether through a contract with a client, vendor, or investor — comes with legal obligations. Without clear, well-drafted agreements, businesses expose themselves to risks such as disputes, financial losses, or even reputational harm. Proper legal guidance not only helps mitigate these risks but also ensures that your business is built on a strong, protected foundation. Having proper legal counsel from the outset can make all the difference in securing long-term success.
Can you share an example where early legal intervention could have significantly altered the outcome of a business dispute or challenge?
An example that comes to mind involves a client who was considering a partnership with a close friend. At the start, they were not concerned about the substantial implications of the partnership. They didn’t think about clearly defining their roles or the corporate structure. The partners assumed that their friendship would ensure everything ran smoothly within the business.
This was not a great approach because anything can happen in a friendship that may affect the business. After I emphasized the importance of having a well-drafted operating agreement and a clear organizational framework, they decided to take proactive steps before moving forward.
Once the corporate structure was finalized with clearly detailing roles, responsibilities, and ownership splits, we were able to alter a business dispute that could have occurred in the future. This early legal intervention protected their friendship and ensured that the business had a strong foundation to effectively grow.
How do changes in digital technology and online business practices complicate legal issues for businesses without dedicated legal advice?
The rapid evolution of digital technology and online business practices has introduced many legal complexities, especially for businesses without dedicated legal advice. For example, the growth of e-commerce has brought challenges such as compliance with licensing requirements, tax obligations, and regulatory considerations, which can vary significantly depending on the jurisdiction. This becomes even more critical when dealing with sensitive industries like medical treatments or pharmaceuticals, where products may be legally permissible in one state or country but restricted in another, especially when selling across state lines or internationally.
A newer and increasingly concerning issue is the role of AI in business operations. As AI continues to advance, it raises questions about intellectual property, data privacy, and liability. Without proactive legal guidance, businesses may struggle to navigate these emerging challenges or fail to address them accurately when they arise. Staying ahead of these issues requires a strategic approach, and dedicated legal counsel is essential to ensuring businesses remain compliant and protected in an ever-changing digital landscape.
In your experience, how does the absence of legal counsel impact a business’s approach to contracts and negotiations, and what advice would you give to mitigate these risks?
In my experience, the absence of legal counsel can have a significant negative impact on approaching contracts and negotiations. A contract legally binds the organization, and without an attorney advocating for the founder, they risk missing opportunities for more favorable terms, legal protections, and assurances that the agreement truly serves their best interests. When the opposing party drafts the contract, it is typically designed to benefit themselves, which can leave the other side exposed to unnecessary risks or unfavorable conditions. My advice is straightforward: always have an attorney review and negotiate contracts. Legal counsel ensures that your agreements align with your company goals, mitigate potential risks, and provide the protection you need to operate with confidence. Proactive legal involvement is not just a safeguard — it is a strategic advantage that can save businesses from costly mistakes and strengthen their negotiating position.
What legal pitfalls do new businesses often overlook during their initial setup and growth phases, and how can they proactively address these issues?
During the initial setup and growth phases, many founders overlook not only the true potential of their business but also the potential hurdles that may arise as they grow. It is easy to focus on the excitement of launching, but neglecting to consider challenges like legal risks, regulatory compliance, and operational hurdles can create significant roadblocks down the line. Having a solid strategic business and legal plan in place from the beginning is key. It helps establish the right systems, team members, and processes to ensure steady growth and long-term success. By proactively addressing these elements, business owners create a strong foundation that enables them to navigate obstacles and stay on course for continued success.
Could you list and briefly explain “Top 5 Mistakes Businesses Make Without Legal Counsel” based on your experiences and insights?
1 . Not Using an Attorney to Assist in Formation
The formation of a business is essential to its legal standing and future growth. Without proper legal counsel, a business may fail to establish the right structure, leading to complications with future investments and legal concerns at both the state and federal levels. For example, when a pump company wanted to raise capital, most investors required the company to be structured as a C-Corporation. Since the business was not properly structured, this raised red flags with seasoned investors, potentially jeopardizing the ability to secure funding.
2 . Not Having Enough Capital to Properly Launch
Many new businesses underestimate the importance of having enough capital to sustain operations during the initial phases. It typically takes a business six months to a year to see a consistent flow of revenue and anticipate profitability. Without this cushion, a business risks running out of resources before it gains traction. I have advised many clients to ensure that they have at least six months to a year of working capital to ensure their business can survive financially through the launch and growth stages.
3 . Not having Proper Service Agreements
I once worked with a client who was experiencing multiple complaints from customers. This was due to vague service agreements, which led to confusion and legal risk. Not having service agreements exposes businesses to potential liabilities, disputes, and ultimately unhappy customers. These are all factors that you do not want to introduce into your business. Service agreements are essential because they set clear terms, pricing, expectations, timelines, scope of services, responsibilities, and liabilities. Since this client did not have a proper agreement, we worked diligently together to develop clear agreements that outlined every key detail, minimizing liability and improving client satisfaction.
4 . Not Having a Strategic Launch and Growth Plan
I had the pleasure of working with a doctor who was launching a new practice. With such excitement and ambition, the doctor did not have a strategic launch and growth plan. Having a strategic launch and growth plan is essential in any business. It helps businesses prepare for both the opportunities and challenges they may face. It also provides an in-depth understanding of what tactics have worked for the business and what have not. Together, we developed a clear roadmap that considered the location of the practice, how referrals would come in, and the steps needed to generate revenue from the launch. This solid plan created a strong foundation for the long-term success of the practice.
5 . Waiting for the Perfect Moment to Start
Honestly, there is no “perfect” moment to start a business, and waiting for one can be costly. The rising costs of services, inflation, leasing or buying a space, and increasing salaries ultimately increase the expenses of running a business. Waiting means you will miss opportunities for new growth within your business. In my career, I have seen founders hesitate to start their businesses because they are afraid of everything not being perfect. In reality, nothing is perfect. As a result of hesitation, founders have watched costs rise and opportunities slip away. The cost of waiting often outweighs the risks of simply taking the leap.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
If I could inspire a movement that would bring the most amount of good for the greatest number of people, it would be to “Dream Big, Act Bold.” This movement would inspire founders to create clear, purposeful visions that not only define their success but also create a ripple effect of good in the community and their industries. Having a clear vision is the start of all progress. It is the ability to see beyond what is in the present moment and envision an attainable future. This movement would empower founders to believe in their dreams and be confident in the bold actions needed for success. It would emphasize collaboration, leadership, and sustainable growth, ensuring that success is measured not only by personal achievement but also by the positive impact left behind in the community. When founders operate their businesses with a clear vision, they inspire others to rise to their potential as well. They solve problems, create opportunities, and build lifelong legacies. Imagine a world where everyone leads with a vision fueled by purpose and driven to serve the greatest good for the community. That is the movement I would create because vision does not only transform lives — it transforms the world.
As we wrap up, how can our readers follow your work?
To stay connected and follow my work, you can visit our website at www.thomaslaw.org and www.latricesmith.com where you can learn more about our services, read insightful blog posts, and explore how we help founders. You can also follow me on social media for updates, tips, and inspiration. My Instagram pages are @thomaslawandconsulting & @latricesmithesq. I would love for you to join me on this journey of empowering founders to build successful, purpose-driven businesses!
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Chad Silverstein is a seasoned entrepreneur with 25+ years of experience as a Founder and CEO. While attending Ohio State University, he launched his first company, Choice Recovery, Inc., a nationally recognized healthcare collection agency — twice ranked the #1 workplace in Ohio. In 2013, he founded [re]start, helping thousands of people find meaningful career opportunities. After selling both companies, Chad shifted his focus to his true passion — leadership. Today, he coaches founders and CEOs at Built to Lead, advises Authority Magazine’s Thought Leader Incubator, and launched and leads an online leadership development community which can be downloaded for free for iOS and Android.
Latrice Smith Of Thomas Law & Consulting On The Top 5 Mistakes Businesses Make Without Legal… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.