Going off on your own checklist
Starting your own business can be simultaneously exciting and nerve-racking. It requires careful planning and commitment to get off to a good start. However, the prospect of being your own boss and carving your own path in the legal world has a lot of appeal for many attorneys and can be extremely rewarding. In this article, we’ll walk you step by step through all the essential steps to launch a successful law firm in the Digital Age.
• Choose your practice area
• Name your firm
• Obtain the necessary licenses and permits
• Open bank + trust accounts
• Sign up for business insurance
• Establish your hourly rate
• Choose the right payment processor
1. Choose your practice area
When choosing an area of law to practice, consider both your ideal work environment and what will provide you with a rewarding and long-lasting career. Whenever possible, explore a field of law that is underrepresented.
2. Name your firm
Whether you are starting off on your own or with a partner, there are a variety of possible naming scenarios for your business. It’s important to remember though, most states do not allow lawyers to operate under a trade name, like “American Lawyers.” Generally, the name of an owner or partner must be included in the title of the firm.
3. Obtain the necessary licenses and permits
Determine if your state requires you to establish your firm as a business entity and which type of entity you qualify for:
- Sole Proprietorship
- General Partnership
- Limited Liability Partnership
- Professional Service Corporation/Professional Association
- Professional Limited Liability Company
4. Open Bank + Trust Accounts
Make sure that your business’s accounts have been correctly set up to start accepting payments. This includes ensuring you’ve lined up an attorney trust account and operating account and securing malpractice insurance, if that is required.
- • Operating Account
• IOLTA
• Non-IOLTA Trust Account
5. Sign up for business insurance
Protect your firm’s success by verifying that you’re properly insured. Check your own state’s rules on professional liability coverage. Depending on your area of practice, you should make a reasonable decision as to whether you will be better protected by having professional liability insurance in the event of a claim. Odds are, your clients will likely be better protected as well.
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• Professional Liability
• Workers’ Compensation
• Health Insurance
• Property, Casualty & Cyber Insurance
6. Establish your hourly rate
There are a few different ways to determine your hourly rate as a new lawyer. Many attorneys will put together a budget based on monthly expenses. Divide your total expenses by the number of billable hours you can reasonably work each week to get a baseline of the effective rate you’ll charge for your services. Of course, not all hours will be considered billable hours. Every legal professional is tasked with managing collections and other administrative duties that you may want to factor in when determining your rate.
7. Choose the right payment processor
Of course, your law practice can’t be successful if you’re not getting paid regularly and on time. That’s why it’s important to choose a payment processor that prioritizes your needs and ensures your payments are reliable and secure. It’s also best to use an online payment processor designed specifically for the legal industry, like LawPay. As you process transactions, your fees will be properly separated between your trust and operating accounts and deposited accordingly. You’ll also avoid the risk of third-party transactions debiting from your IOLTA account.
A proud American Bar Association member benefit provider, LawPay allows you to easily and securely accept credit, debit, and eCheck payments anytime, from anywhere. Get started >>
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