Checklist for Starting A Law Practice

• Forms of Practice
  • Considerations in Selecting Form of Practice
    • Taxation
    • Liability
    • Succession/Dissolution
  • Solo Practice
  • Partnership
  • Professional Corporation
    • Articles of Incorporation
    • Shareholders, officers, chief operating officer
    • Statement of Good Standing from Clerk of Supreme Court
  • Limited Liability Partnership
  • Consult with CPA
• Office Space/Location Considerations
  • Office Building
    • Image, upscale, informal
    • 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
• Accounting Needs
  • Consult with Bookkeeper
  • 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
• Start Up Costs/Credit Sources
  • Highly suggested that enough cash or line of credit be available to cover stat-up costs and a least the first 6 months to one year of operating expenses plus personal living 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
• Bank Accounts
  • Trust account (separate account)
    • IOLTA account, if applicable
    • Business operating account for expenses/payroll
    • Short term savings
    • Safety deposit box
    • Firm credit card
    • Investments
    • Checks, deposit slips, endorsement stamp
    • Set up account to accept credit cards
    • Retirement plan
• Technology
  • Software
    • Word Processing
    • Time and billing/accounting
    • Calendaring and docketing
    • Conflicts checking
    • Case Management
    • Document assembly
    • Office Suite Software
• Office Systems/Procedures
  • Develop office manual/operating procedures manual
    • Standard procedures/policies for practice
    • Personnel issues/benefits
  • Docketing, calendaring, tickler system
    • Computer (dual system is highly recommended)
    • Manual
  • File Organization
    • Alpha/numeric
    • Centralized/decentralized
    • Opening file procedures
    • Closing file procedures/retention/storage/destruction
    • Document maintenance
      • Offsite – safety deposit box
      • Computer backup
      • Fireproof files
    • Forms used in practice
      • Client interview form
      • Engagement/non-engagement letters
      • Written fee agreements
      • Practice specific checklists
      • Billing Statement Form
      • General client correspondence, notices, etc
      • Client survey after conclusion of representation
    • Client billing procedures
      • Regular monthly statements even if no amount due
      • Detailed billing statement
      • Expense billing
      • Costs to be billed
        • Legal assistant time/paralegal time
        • Telephone expenses
        • Duplicating expenses
        • Computerized legal research
        • Mailing costs
        • Other
      • Collection policy
      • Credit cards for payment
    • Client relations policy
      • Setting appointments, introducing staff
      • Returning phone calls, e-mail messages
      • Client intake form/survey at conclusion of representation
      • Keeping clients informed
        • Sending copies of work, documents
      • Communicating fee
        • Clear discussion about fees
        • Written fee agreements/engagement letters
      • Accounting procedures
        • Bank account reconciliation
        • Cash flow statement
        • Accounts Receivable/Payable
          • Aging review
        • Expense Approval System
        • Counter signature requirement on checks
        • Others
• Insurance Protection
  • Professional liability
  • Workers Compensation
  • Heath Plan
  • Car insurance for business use
  • Property (liability, wind, fire, earthquake, etc)
  • Loss of valuable documents
  • Life
  • Disability
  • Business Interruption
• Miscellaneous
  • Call WSBA’s Law Office Management Assistance Program lomap.org
    • Lending library
  • Register d/b/a name (if applicable)
  • Obtain city or county business licenses or permits
  • Order 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 recovery plan for your office, files, computers, etc.
  • Develop a plan for your illness, incapacity or death
  • Attend law practice management CLE’s such as LOMAP’s Traveling Seminar
  • Join solo and small firm sections to network with other solo and small firm lawyers
  • Change address with your bar
  • Call your bar’s Ethics Counsel with prospective ethical questions (206) 727-8284 or (800) 945-WSBA
  • Join local bar association