How to Start Your Own Successful Law Firm

A lawyer may decide to open their practice for various reasons. Simply put, some people get tired of working for complex managers. Some people wish to specialize in a specific field, while others desire time freedom. Some legal professionals find themselves in a lurch when they are suddenly laid off or fired. Whatever your motivation, opening your law practice is a huge step that might feel highly daunting at first.

6 Steps to Follow in Establishing a Successful Law Firm

You can do several things to get ready to leave your current employment, regardless of whether or not you know when that will be. Like any other major endeavor, it’s easy to get overwhelmed by the sheer number of things that need to be done before you can even get started. For this reason, it is beneficial to divide the process of opening a legal firm into manageable chunks, beginning with the fundamentals:

1. Forming the Entity

Before deciding what kind of corporate entity to establish, it’s wise to talk things over with an accountant and a corporate attorney. Your chosen company’s operating structure influences many aspects of running a business, including taxes and your liability for business debts and obligations. Sole proprietorship, professional corporation, limited liability partnership, and limited company are all frequent organizational structures for smaller and medium-sized legal practices. Apply for a federal Taxpayer Identification Number after establishing your business (EIN).

2. Financial Accounts

Lawyers are subject to strict rules regarding the handling of client funds. Set yourself up for financial success by immediately opening all the necessary accounts for your law practice.


• Checking Account(s)


Lawyers are subject to strict rules regarding the handling of client funds. Set yourself up for financial success by immediately opening all the necessary accounts for your law practice.


• Client Trust Account


Client trust accounts are established when clients pay retainers or give other forms of payment to maintain legal representation.




IOLTA is commonly used in the legal field. Lawyers could earn interest on client cash if they leave them in trust accounts for long periods. Interest accrued on clients’ trust money must be deposited into an IOLTA profile.


• Credit Card


Since many law companies struggle with cash flow, especially when starting, a company credit card is essential. In addition, many lawyers prefer to use their corporate credit cards for all their purchases to rack up rewards points and move up in the ranks of their selected loyalty programs.

3. Get a Professional Liability Insurance

No other form of business organization can offer the same security level as insurance coverage. Legal malpractice can result in significant financial losses, which professional liability coverage covers. It is recommended that you research your state’s regulations to see whether this form of insurance is required for attorneys and, if so, at what level of coverage they must operate.

4. Outsource for a Logo

A logo that looks the same in print, online, and any other medium should be a top priority for your organization. You should be familiar with the logo’s font(s), and Pantone color(s) used. The logo should be available in a variety of file types.


The logo—including its color scheme and typeface—sets the stage for your legal practice’s advertising and branding efforts. Because of this, you should start working on your legal firm’s logo design immediately.

5. Office Space

Dedicated tangible office space is crucial for many reasons, even though many solopreneurs have shifted toward virtual offices or workplace share arrangements. First, you’ll need a proper office to conduct business and interact with customers.


To top it all off, you’ll need an actual, brick-and-mortar location with its address and possibly even a suite number. Most attorneys overlook the importance of having a high organic search engine rank.

6. Software and Hardware

Your legal practice will require specific hardware, such as phones, printers, and computers, and specific software, such as the email client and Microsoft Office Suite.


Even though you might not initially have the funds available to purchase the case software solutions of your aspirations, note the ideal IT support for lawyers for your business and strive to achieve it over time.


After your organization has been established and you have finished laying the groundwork, you could start developing the remainder of your essential marketing channels with the assistance of your logo. After that, you should work toward reaching the goals you have established for your firm in budgeting, advertising, hiring, income projections, and any other relevant areas you can imagine.

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