Becoming a lawyer is difficult. You need to spend at least four years getting a bachelor’s degree and another three years getting a law degree. Then, you must pass the bar exam in the state where you intend to practice law.
You are a personal injury lawyer once you have put in the effort and passed the exam. Unfortunately, just because you are a lawyer, that doesn’t mean you can meaningfully practice law. To practice law, you must either join a law firm or create one.
Fortunately, creating a law firm is much easier than becoming a lawyer. The advent of the internet means you can start a law firm from the comfort of your home. If that is your intent, this is what you need to do.
File The Appropriate Paperwork
Before starting a law firm, you must form a business entity and file for a federal Employer Identification Number (EIN). To form your business entity, you must decide what type of business you will create. The most common choices for a law firm are:
- Sole proprietorship
- Partnership
- Corporation
- Limited liability company
Assuming you took a business law class, you probably understand the differences between these options. But before you make any decisions or start the process, you should probably consult with a business lawyer to ensure you have all your ducks in a row.
The good news is that all of this paperwork (and probably even the legal consultation) can be done from home. Your EIN and entity formation filing can almost always be done online.
Set Up An Office
Working from home is not an excuse to look unprofessional. You should set up an office where you will do your work. This is important for several reasons.
Nowadays, a large portion of your contact with clients may be digital, probably through a form of video chat. When talking to clients, you want them to view you as a professional. Having a professional office in the background is a big step toward achieving that goal.
Furthermore, having an office will help you separate your work life from your free time. If you do law work in the same room where you play fantasy football, it can be much harder to differentiate between the two parts of your life.
Finally, you may need to speak with clients in person. If you have an office, you have the ideal location to meet with clients.
When setting up your office, don’t just focus on its appearance. Make sure you have the electronic equipment you will need. You should purchase:
- A computer with legal software installed
- Licenses to access legal databases
- A printer with scanning capabilities
- A business-level internet connection
- A phone with multiple lines
It is better to overspend on equipment than underspend. If you get a low-quality printer, for example, you could be replacing it in just a few months.
Create A Logo And Start Advertising
A law firm that doesn’t have any clients won’t be very successful. One of the most effective ways to get clients is to advertise. But that means you need your advertising to catch the attention of potential clients.
Before buying any advertisements, create a name and logo for your law firm. It doesn’t have to be perfect, but it should look professional. Typically, a good digital artist can help you create a logo for a few hundred dollars.
As soon as you have a logo, trademark it. This will increase the cost of making a logo but will protect you from having your reputation stolen.
Organize Your Finances
Just as you don’t want to work out of your bedroom because that will mix your professional life with your personal life, you don’t want to mix your private and legal finances. This means you should get a checking account and credit card for your business.
If you accept retainers from clients, you need to have a separate account to hold that retainer. This means you will have to create a trust account for the client, and you will need a separate trust account for every client who provides you with a retainer.
Arranging this in advance with your financial institution will make it a lot easier when the time comes. Additionally, if the trust account earns interest, you must place those earnings in another separate account. This may seem complicated, but most financial institutions that deal with business accounts can arrange this to work seamlessly.
You should also consider making accounts for transferring money digitally. Many people use PayPal, Venmo, or other similar services to pay for services. Having accounts for your law firm on these platforms creates loyalty among your clients by providing them with alternative ways to pay you.
Purchase Professional Liability Insurance
Professional liability insurance protects you from legal malpractice claims. In many states, this coverage is mandatory. But whether it is mandatory or optional, you should purchase as much as you can afford. It is better to have insurance that you don’t need than to not have it and get wiped out financially.
While purchasing this type of insurance, you should consider getting other types of insurance for your business. Your law firm will suffer if your computer suddenly crashes or a tree falls on your home office. Homeowner’s insurance may not fully cover those types of losses.
By upgrading your insurance, you can protect your business from any sort of catastrophe that would prevent you from working.
Setting Up A Law Firm At Home Is Easier Than Ever
Almost every aspect of setting up a law firm can be done online. This makes it easy to start a law firm from home. As long as you follow the steps above and consult with an experienced lawyer, you should be running your law firm from home in almost no time.