CHECKLIST FOR STARTING A LAW PRACTICE
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1 CHECKLIST FOR STARTING A LAW PRACTICE This checklist is designed simply as a guideline to provoke thought when considering starting a law practice. It is not meant to be all inclusive. Updated February 2013 I. PLANNING/BUDGETING Review PMAP Starting Up pages at Do self-assessment about starting a practice Tolerance for Risk Managerial Skills Marketing Skills Confidence Level in Legal Skills Write a Business and Marketing Plan How much do you need to live for a year? Projection of gross receipts Projection of overhead and expenses Projection of net receipts Cash flow projections Projection of hours worked Marketable experience Setting fees to make a profit Written fee agreements II. MARKETING PLAN/PRACTICE DEVELOPMENT Potential Client Base Advertising Suggestions Business Cards Yellow Pages ads Website Keep information and vital data like phone numbers current. Do not offer your address unless you intend to check it regularly and are aware of potential conflicts of interest issues. Keep a photocopy of your webpage/ad in your files for 2 years per SCRPC 7.2. Social media Twitter, Facebook, LinkedIn TV, radio, billboard Office signage Sign up for Lawyer Referral Service through the SC Bar (need to have experience) Firm brochure On web, printed or as a PDF. Client newsletters Join civic organizations and Bar sections and committees Speak at CLE programs You will reach a large number of people who may seek your services later. You can also receive free CLE credit for speaking at CLE seminars. Update your personal information on file with the Bar to include your website. **Remember to follow the Rules of Professional Conduct regarding advertising. Review Rules 7.1, 7.2, 7.3, and 7.4. III. FORMS OF PRACTICE Considerations in Selecting Form of Practice taxation liability 1
2 succession/dissolution Solo Practice Incorporate with SC Secretary of State Partnership Professional Corporation Articles of Incorporation Shareholders, officers, chief operating officer Statement of Good Standing from Clerk of Supreme Court Limited Liability Company Articles of Organization members Limited Liability Partnership Consult with CPA Specialized/General Practice Partnership Agreement in writing Capital/equity from partners Withdrawal/retirement issues Compensation and profit distribution Each partner s role in the practice Managing Partner Rainmaker Others IV. OFFICE SPACE/LOCATION CONSIDERATIONS Office Building Image (upscale, informal, etc.) Square footage ADA considerations Parking Services, janitorial Expansion Opportunities Renovation Needs Location Office sharing Renting, leasing Purchasing/buy into a law practice Working from home V. ACCOUNTING NEEDS Consult with CPA Set up accounting procedures Chart of accounts Profit and loss statements Balance sheets Cash Flow Statement Quarterly and annual tax returns Payroll services Bank and trust accounting systems/reconciliation procedures Software compatible with accountant VI. START UP COSTS/CREDIT SOURCES Suggested you have enough cash or a line of credit to cover start-up costs and at least the first 6 months to one year of operating expenses plus personal living 2
3 expenses. Sources of credit Local bank/credit Union personal, business loan home equity, home refinance line-of-credit to be drawn upon as needed lease, equipment loans family loans/private investor loans Personal savings VII. VIII. BANK ACCOUNTS Trust account (separate account) IOLTA account (forms at Business operating account for expenses/payroll Short term savings Safe deposit box at bank Firm credit card Investments Checks, deposit slips. Order different colors for operating account and trust account Set up law firm credit card merchant account (LawPay is endorsed by the SC Bar) Retirement plan TECHNOLOGY Choose cloud or traditional software Choose cloud/hosted or traditional network Software Suggestions: Backup or disk cloning software Calendaring and docketing Conflicts checking Case Management Document assembly Office Suite Software Other specialized or practice specific software PDF creator Presentation Software (such as PowerPoint) Spreadsheet Time and billing/accounting Virus protection for computers Voice Recognition for dictation Word processing Review software options at Review Bar Member Benefits: Hardware: Choose Mac or PC Computers External drives for daily computer backups 3
4 Printers Network hardware for office network Desktop scanner (scanning and for faxing) (Fujitsu ScanSnap is popular) Notebook computer Smart phone Dymo label printer IX. OFFICE EQUIPMENT/SERVICES/SUPPLIES Photocopier (lease with service, toner and supplies is optimal choice) High Volume Scanner Shredder Dictation equipment Internet Service Provider and high speed access Domain name and address Telephones Answering machine, messaging system or answering service (Ruby Receptionist) Local and long distance carrier (phone co. or VOIP voice over IP) Conference calling Music on hold Cell phone service Postage scale/mail equipment or Stamps.com Establish UPS and Fed Ex accounts Office furniture for lawyer(s), staff, reception area, file cabinets, conference, room furniture, carpeting and area rugs, book shelves, art work/office decorating needs Office supplies, paper, envelopes, pens, staplers, file folders, etc. Business cards, announcements Order public information brochures from the Bar for clients X. LIBRARY/LEGAL RESEARCH Online legal research provider Access to Casemaker is free for Bar members Purchase new or used law books Local law library (county court or law school) Internet research XI. XII. OFFICE SYSTEMS/PROCEDURES Accounting procedures Handling client funds Client relations policy Collection policy Design client bill format Develop office manual/operating procedures manual Docketing, calendaring, tickler system File organization Forms used in practice Messaging system Personnel policies/benefits INSURANCE PROTECTION Professional liability list online at under Starting Up/Insurance 4
5 Workers' Compensation Health, Dental, Life and Disability Insurance (see Member Benefits page) Auto Insurance for business use Property (liability, wind, fire, earthquake, etc.) Loss of valuable documents Business Interruption XIII. XIV. PERSONNEL Legal Assistant/Paralegal Consider Ruby Receptionist Answering Services Full-time, Part-time or Temporary Sharing personnel with other professionals Training Employee benefits Vacation, holidays Sick leave Overtime policy Medical insurance Retirement Plan Others Secure I-9 forms, W-4 forms, confidentiality agreement, employment applications, etc MISCELLANEOUS Provide Supreme Court with correct contact info: Contact the SC Bar s Practice Management Assistance Program (PMAP) with any questions you have. Call or Jill Rothstein, Legal Ethics Counsel, with ethical questions. [email protected] Join the SC Bar s Solo and Small Firm Section and listserv for access to a network of other solo and small firm lawyers. Also, consider attending the SC Bar s Solo and Small Firm Conference held annually in September. Check out books from the Bar s Lending Library. Obtain city or county business license for your office. Rent Post Office Box (if needed). Build a forms file. Become a notary or have someone on staff or close by that is available. Develop a disaster plan for your office, files, computer, etc. Request the Prepare booklet from the Bar. [email protected]. Develop a plan for your illness, incapacity, or death. Find a backup lawyer to act in your place in emergencies. Join county bar association. Develop a network of other lawyers to call upon for advice and assistance. 5
CHECKLIST FOR STARTING A LAW PRACTICE
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