Are you an attorney looking for tips on how to start a law firm?
There are more than 1.3 million lawyers working in private practices in the United States, in firms that vary from solo practitioners to law firms with teams composed of hundreds of attorneys. Once you’ve passed your state’s bar examination and have your attorney bar license, you can choose to work for a law firm or start your own law firm.
“A state bar license allows attorneys to practice in almost any area of law,” according to professional license attorney Tsion Chudnovsky. “Most lawyers choose to focus their practice in specific areas of law in order to build expertise, reputation and a client referral focus. Some of the most lucrative practice areas are personal injury, criminal defense, corporate and family law.”
The decision to open your own law firm can be stressful and overwhelming because of the uncertainty surrounding this huge decision. How can you open a law firm in the most efficient way? What will you do to generate new business as an attorney?
The answers to these questions can be the difference between opening your own firm or working for someone else.
Read on to learn a complete step-by-step guide for how to start a law firm!
Register Your Business
Before starting a law firm you should register your business with your state’s Department of Corporations.
Registering your business will establish your firm as being official in the eyes of the state where you incorporate it. Before you register, you’ll need to apply for an Employer Identification Number (EIN) with the IRS.
Your firm’s EIN will be the unique number you’ll use for filing your state and federal income taxes. It’s also used for reporting your employee’s income taxes, including the revenue you pay to yourself.
When you register your business with the state, other information you’ll need includes officer name(s) and the primary mailing address. Your firm will also need to have a registered agent, along with the agent’s address.
A registered agent is a person authorized to accept service of process on your firm’s behalf in the event a lawsuit is filed against it.
Reserve a Domain Name
In today’s digital age, you can’t afford to start a law practice without reserving a domain name.
A domain is the web address someone uses to access a website. A domain name may seem like a minor detail in the bigger picture of establishing your law firm, but the reality is that it’s actually very important.
You’ll want to choose a domain name that is unique to your firm, while also not being overly long or complicated. If you’ve got a domain name that’s wordy or hard to remember, you run the risk of someone not finding it when they look.
For example, if you’ve got a prospective client that wants to visit your website, it should be a smooth process that’s effortless for a user. Otherwise, a prospective client may look elsewhere online for legal services.
Develop an Optimized Website
It’s not enough for your law firm’s domain name to be short and catchy for users. You’ll need to develop a website that’s built around search engine optimization (SEO).
What is SEO and why is it important for your legal practice?
SEO is a form of internet marketing with its focus on helping your website rank higher in search engine results. Your website’s SEO is what can make the difference between having your website found on the internet or being overlooked.
Did you know that 75 percent of Google users never scroll past the first page of search results?
For example, if you’re a Tampa lawyer working on divorce cases, you’ll want to rank on the first page of Google results for Tampa divorce attorneys.
Some of the ways you can optimize your website are by including video and photographs, blog content, and including searchable keywords and phrases.
Working with an experienced SEO marketing team will help you create a website that’s ready to take your law firm to the next level!
Leverage Social Media Popularity
Starting your own practice can be expensive so it’s important to take advantage of cheap or free marketing opportunities when you can.
There’s no denying the popularity of social media with people of all ages across the United States and beyond. There are more than 3.08 billion social media users across the world!
The sheer popularity of social media applications like Facebook, Twitter, and LinkedIn gives you a great opportunity to connect with your target market. Best of all, they are free to use!
Spend time on each application to set up your law firm’s account. Be sure to include important and accurate information, such as your firm’s address, phone number, email address, and web domain name.
Once you’ve created these accounts, be sure to stay on top of ensuring they include accurate information and that you’re using them to share unique information about your firm.
Find Your Niche
Your law firm will benefit the most from focusing on a certain niche market.
For example, you may practice in the area of criminal law but with a focus on DUI’s and criminal traffic situations.
Your website and social media applications should make it clear to a prospective client that this is your niche. Use these platforms as a place to market your services and tell a user why they should hire you instead of the competition.
What experience, education, or training do you have that most other people in your niche do not? Outside of the practice of law, how can you connect in the best way with your target market?
Focus on your niche before your law firm ever opens its doors so that you set yourself up for success when you do.
Tap into Your Professional Network
It’s no secret that starting a business of any kind is a challenge.
Over 50 percent of entrepreneurs fail after they’ve passed their fifth year in business. Although more than half of business owners won’t make it in the long run, that doesn’t mean you need to become part of that statistic.
Before you start your own practice, spend a lot of time thinking about the area of law you will practice in and how you will operate from day to day.
Once you’ve decided on a plan of action for how to bring your practice to life, don’t hesitate to tell other people what you’re doing.
For example, if you’ve been working in private practice for another firm before starting your own, you’ve built up a large professional network.
Sitting down to write out names in your professional network will help you realize the depth of your connections and ensure you don’t overlook anyone. Once you’ve identified your network, send out announcements or a mass email to let your friends know what you’re doing.
Your professional network is a priceless way to generate leads and referrals for your law firm. It can also be what will help you get your firm off the ground when you first open your doors.
Read here to learn more about lead generations for your law firm!
Determine the Need for Employees
When you are first starting a law firm, you may be set on trying to do everything on your own.
After all, if you’re a true solo practitioner, you won’t have to worry about paying anyone but yourself. In the earliest days of your firm, you may plan to forego paying yourself and putting any profits back into the business to get things going.
While being a solo practitioner is tempting, you may find that your needs require you to bring on an employee or two.
For example, you may want to hire a secretary or a paralegal to help you with answering the phones, filing documents with the court, or interfacing with clients on your behalf.
If you’ve got enough business to fill another attorney’s plate, you may want to bring on an associate attorney as another form of income.
Hiring an employee can be stressful because you may be uncertain about your cash flow at first, so be sure to run through a few different budget scenarios to determine affordability.
Learn How to Start a Law Firm
When asking how to start a law firm, remember that building a successful practice takes time and effort.
By following the tips and tricks in this step-by-step guide, you will increase the likelihood that you open a firm that has consistent business and serves a wide client base.
Although a law firm specializes in providing legal services to other people, remember that operating a private firm is a lot like owning any other business. You’ll need to generate enough revenue to cover your costs and keep costs low enough to turn a profit.
Your law firm’s reputation will be an important part of how you generate new business, so it’s crucial that you’re ready to hit the ground running when you open your firm.
Are you seeking other ways to improve your work-life while marketing yourself to other people?
Check out our blog section to learn other great ways to help you stand out from your competition in the legal world!
