Setting Up A Solo Practice. Brunsdon Law Firm, an Affiliate of Day Ketterer, LTD. 520 S Main Street, Suite 2519 Akron, Ohio

Transcription

1 Setting Up A Solo Practice Brunsdon Law Firm, an Affiliate of Day Ketterer, LTD. 520 S Main Street, Suite 2519 Akron, Ohio Terri Brunsdon, JD, CPA

2 Is Solo Right for you? Have an entrepreneurial spirit? Willing to take risks? Ready to handle all aspects of a business Bookkeeping, billing, marketing, collections, employees, and technology? Ready to initially spend more time running a business versus practicing i law? Have a source of cash flow until your business gets up and running?

3 Initial Planning Do your research: ABA: americanbar org/portals/ ABA: solo_home.html

4 Initial Planning Books: Solo by Choice, Second Edition: How to be the Lawyer You Always Wanted to Be by Carol Elefant How to Start t & Build A Law Practice, 5 th Edition by Jay G. Foonberg The Practice: Brutal Truths About Lawyers and Lawyering by Brian Tannenbaum

5 Initial Planning Choose a business structure Sole proprietorship, LLC, S-Corporation, or Corporation Select an office location Develop a business plan

6 Business Structuret Sole Proprietorship Taxed on Schedule C of personal return Income subject to self-employment employment tax, i.e., 15.3%. Open liability - all personal assets free game.

7 Business Structuret Limited Liability Company Personal asset protection (limited) Single member-taxed on Schedule C of personal return Multi-member taxed on Form 1065 Partnership return Regardless - income/loss passes-through to personal return Income subject to self-employment tax, i.e., 15.3%. Note: Check the box Form 8832 can elect S-corp treatment Why? Way to manage self-employment tax

8 Business Structuret Corporation / S-Corp S-Corp (Corp with a Form 2553 election) Taxed on Form 1120-S Income/loss pass-through to personal return and taxes paid by owner Owner paid through wages and withdrawals C-Corp Taxed on Form 1120 Owner paid through wages and dividends (double taxation)

9 Develop a Business Plan SCORE National Office has free business planning templates p g financial-statements-template-gallery Akron SCORE provides free assistance or Free workshops Free mentoring

10 Why a Business Plan? Description of your business Name, location, services, start-up costs Marketing Perform a market analysis Competition, pricing, advertising Developing a budget Start-up costs Cash flow projections Income statement projections

11 Choosing an Office Location Virtual versus Physical At a minimum, plan for: Answering your phone An address for mail and packages A place to meet clients

12 Going Virtual If just work from home, how do you handle Phone calls: cell, answering service Mail delivery: PO Box, UPS mailbox Meeting with clients: public library, law library, Akron Bar By adding a virtual space Gain access to physical address meeting space Gain access to physical address, meeting space, copier/faxing facilities, receptionist

13 Virtual Office Services REGUS located in Cleveland, Columbus, Cincinnati, Beachwood, Westlake, Independence (near major cities) Strategic alliance with ABA Canal Place com located in downtown Akron Basic identity ($100/mo: business address, mail handling) or executive identity ($250/mo: phone line, receptionist, 4 hrs conference room per mo.)

14 Physical Location Office share with other attorneys Share receptionist, conference rooms, copiers, etc. Ethical consideration o be sure to protect confidentiality ty and to maintain a separate presence Business centers or co-op spaces Distinct physical space with utilities included Shared receptionist Executive Suite Canal Place in Akron REGUS

15 Akron Bar Association Incubator Program Started Fall 2015 Provides low-cost office space to new lawyers and a mentor lawyer Must be: Licensed to practice for 5 years or less Desiring to work with a mentor to develop a business plan for a solo or small firm practice in Summit County Willing to commit for 18 months Obligated to pay rent: currently set up as: 6 months, no rent; 6 months $250 per month; 6 months $500 per month Willing to meet reasonable requirements for pro bono and/or limited means representation Contact: t ABA Executive Director, C. Allen Nichols (callen@akronbar.org)

16 Staffing Virtual Receptionist Answers calls Screens calls & relay messages Connect callers to your choice of location Couple to look at

17 Staffing Virtual Assistants/Paralegals Virtual Assistants can research, type documents, make phone calls, etc. Don t forget law schools great source for interns

18 Startup t Costs Furniture Look for deals on nice used furniture, chairs, filing cabinets, bookshelves, etc. Office Furniture Warehouse on West Market Street in Akron ( Craigslist

19 Startup t Costs Computer Hardware Laptop, desktop, server Backups ALWAYS back up your files Carbonite software for online backups ( External drives ISP & wireless router don t forget SECURITY!!!

20 Startup t Costs Computer Software Practice/Case Management: ABA comparison chart on options, pricing, and discounts Calendaring, client/contact tracking, billing, conflict checking Cloud based with monthly subscription fees CLIO, Rocket Matter, MyCase, LawRD, AbacusLaw Software based Tabs 3, AbacusLaw Search other practice management software products Search other practice management software products at:

21 Startup t Costs Accounting Software: Indispensable for bookkeeping and IOLTA tracking Options: QuickBooks Pro or QuickBooks online Peachtree - Sage Accounting

22 Startup t Costs Practice Specific Software Estate Planning FORE! Trust Software Bankruptcy Best Case; E-Z Filing; Bankruptcy Esq.; BankruptcyPRO Probate Perfect Form Optional but highly recommended PDF writer so can store/transmit documents PDF writer so can store/transmit documents digitally

23 Startup t Costs Fax / Scanner Virtual Fax like E-Fax, MyFax, or RingCentral Fax Fax via internet and receive via Scanner go paperless. Fujitsu ScanSnap ix500 Bankruptcy & Tax courts require electronic filing Federal District Court has adopted Summit County Common Pleas Court requires electronic filing for all new civil actions, motions, pleadings, and proposed orders, excluding civil stalking, misc. discovery matters, wage garnishments, & bank attachments

24 Startup t Costs Printer / Copier A high quality all-in-one printer great for letterhead, brochures, small copying jobs For larger coping jobs look at Kinko s, Office Max, or Staples General purpose B&W laser printer great for volume printing lower ink costs

25 Startup t Costs Other Technology Smart phone with broadband access if want access internet on laptop while away from office ipad great apps for legal professionals Can also be your credit card machine

26 Banking Needs Checking Accounts Operating Account Linked to business EIN IOLTA account Linked to OSBA EIN. Must provide Ohio Supreme Ct. with IOLTA account number using on-line license registration site Ohio Supreme Court Opinion : credit card payments should go into IOLTA account. Earned fees must be taken out immediately, bank charges are permitted to be covered by transferring money from your operating account

27 Insurance Needs Malpractice Minimum 100/300 if don t have then must disclose to clients Ohio Bar Liability Insurance Company (OBLIC) Offers 15% discount if complete 24 hours of CLE a year

28 Insurance Needs Business General liability Office equipment/furniture, e u tu e, computer equipment e & record reconstruction Employee dishonesty and theft Worker s Comp Can opt to cover yourself Required if have employees

29 Legal Research Ohio Bar Association offers free CaseMaker Law Libraries Akron Law Library at Free access to Westlaw and Lexis research and offers laptop can check out for few days Cleveland Law Library at

30 Reference Books Local law libraries or legal aid societies dispose of old reference books and may give to you for free. May want a basic forms and contract book. Can find pleading examples at: Summit County Common Pleas website y

31 Marketing Website Must have! Design yourself with template Very effective form of advertising if follow SEO advise from Google and Bing and submit site to search engines Business Cards / Brochures Look at Make business card Look at Make business card two-sided (even if blank back), else vistaprint logo

32 Marketing Network, Network, Network Bar Association Lawyer Referral Services Community involvement chamber of commerce, etc - pro bono work Always carry business cards Do seminars or speaking engagements CUSTOMER SERVICE! Past and present clients can become your best referral source

33 Getting Paid Signed fee agreements explaining costs and service Retainers before you begin work. Bill on a regular basis Prepare detailed bills clients like to know what you re doing. Make sure bills show any retainer payment application. Stagger billing cycle to improve cash flow.

34 Staying Competent t Attend CLE s Most discounted for first year attorneys. Not very busy initially so use time to explore practice areas of interest to you. Great way to network. Remember OBLIC offers discounts if > 24 hrs CLE year

35 Staying Competent t Professional Organizations Join Bar Associations many are free for the first year you are licensed. Get involved with committees and sections. Attend meetings great way to learn. Find a mentor Join different professional associations related to your practice areas most are discounted for new attorneys. Evaluate to see if beneficial to your practice.

36 Staying Competent t Join listservs American Bar Association has a Solo Practice section listserv Different committees at OSBA have listservs. Specialty associations have listservs

37 Other Notes Become a Notary Download OSBA Office Keeper: Ohio State Bar Association Sample engagement / disengagement letters and fee agreements. If it s already been done, don t reinvent the wheel.

38 Questions