The Help You Need Starting Your Washington Law Firm

When starting a new law firm in Seattle or anywhere in Washington state, there is a number of things you will need to have in place. Some of these are essential and some are just helpful, but it is important to know all you can about setting up your practice.

At Dean Standish Perkins & Associates, we understand the challenges new attorneys face when going solo or starting a small law firm from scratch. In fact, in addition to being an exceptional lawyer with more than 35 years of experience, our lead attorney, Dean Standish “Stan” Perkins, actively offers help, guidance and assistance to young attorneys in the Seattle University School of Law Incubator Program. Below are some things to consider when starting your legal practice.

 

I. PLANNING/BUDGETING

  • Do a self-assessment about starting a practice
  • Tolerance for risk
  • Managerial skills
  • Marketing skills
  • Confidence level in legal skills
  • Write a business and marketing plan
  • Projection of gross receipts
  • Projection of overhead and expenses
  • Projection of net receipts
  • Cash flow projections
  • Projection of hours worked
  • Marketable experience
  • Set fees to make a profit
  • Written fee agreements

II. MARKETING PLAN/PRACTICE DEVELOPMENT

  • Identify your potential client base
  • Advertising
  • Social media platforms
  • Website and blog posts
  • TV, radio, billboard
  • Office signage
  • Sign up for county bar lawyer referral services
  • Sign up for lawyer search services
  • Firm brochure
  • Client newsletter
  • Join civic organizations
  • Produce community seminars
  • Announcements
  • Speak at CLE programs

III. 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
  • Professional limited liability corporation
  • 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

  • Brick and mortar office building or virtual office
  • 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
  • Virtual practice (eg, 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
  • Hire a bookkeeper

VI. START UP COSTS/CREDIT SOURCES

  • Highly suggested that enough cash or a line of credit be available to cover start-up costs and at 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

VII. BANK ACCOUNTS

  • Trust account (separate account)
  • IOLTA account, if applicable
  • Business operating account for expenses/payroll
  • Short-term savings
  • Safe deposit box
  • Firm credit card
  • Investments
  • Checks, deposit slips, endorsement stamp
  • Set up merchant account to accept credit cards
  • Retirement plan

VIII. TECHNOLOGY

  • Software
  • Word processing
  • Time and billing/accounting
  • Calendaring and docketing
  • Conflicts checking
  • Case management
  • Document assembly
  • Office Suite software
  • Word processing
  • E-mail
  • Spreadsheet
  • Presentation software (such as PowerPoint)
  • Others
  • Virus protection for computers
  • Voice Recognition
  • Other specialized or practice specific software
  • Hardware
  • Computers
  • Operating system
  • Back-up system
  • Lease or purchase
  • Printers Network/firewall
  • Scanners
  • CD-ROM
  • Laptop Computer
  • Personal Digital Assistant (PDA), smartphone; tablet

IX. OFFICE EQUIPMENT/SERVICES
/SUPPLIES

  • Fax machine
  • Photocopier
  • Scanner
  • Shredder
  • Voice Recognition Software
  • Internet service provider
  • Email address
  • High speed internet access
  • Telephone system (traditional land line, cell phone, or VOIP)
  • Equipment/answering machine
  • Voice mail/manual message system
  • Answering service
  • Local and long-distance carrier
  • Conference calling
  • Zoom or another videoconferencing platform
  • Cell phone/service
  • Postage scale/mail equipment
  • Establish UPS and FedEx 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, stationery, copier paper, plain envelopes, pens, staplers, good quality file
    folders, etc.
  • Business cards, announcements
  • Order public information brochures from the Bar for clients

X. LIBRARY/LEGAL RESEARCH

  • Online legal research provider
  • Free resources through WSBA
  • Local law library
  • Law school library
  • Courts library
  • Internet research
  • CD-ROM
  • CLE Deskbooks

XI. 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
  • Computer backup and password protection/storage
  • 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 form 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
  • Others
  • 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
  • Send copies of work, documents
  • Communicating fees
  • Clear discussion about fees
  • Written fee agreements/engagement letters
  • Accounting procedures
  • Bank account reconciliation
  • Cash flow statement
  • Accounts receivables/payables
  • Aged accounts review
  • Expense approval system
  • Counter signature requirement on checks
  • Others

XII. INSURANCE PROTECTION

  • Professional liability
  • Workers’ Compensation
  • Health plan
  • Car insurance for business use
  • Property/premises (liability, wind, fire, earthquake, etc.)
  • Loss of valuable documents
  • Life
  • Disability
  • Business intemiption and key man insurance
  • Cyber insurance

XIII. PERSONNEL

  • Legal assistant/paralegal
  • Full-time
  • Part-time
  • Temporary/virtual
  • Hours, flex-time
  • Sharing personnel with other professionals
  • Training
  • Employee benefits
  • Vacation, holidays
  • Sick leave
  • Overtime policy
  • Medical insurance
  • Retirement plan
  • Others
  • Secure 1-9 forms, W-4 .forms, confidentiality agreement, employment applications, etc

XIV. MISCELLANEEtUS

  • Call your State Bar’s Practice Management Advisor for help
  • 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 who is available
  • Develop a disaster recovery plan for your office, files, computer, etc.
  • Develop a plan for your illness, incapacity or death.
  • Attend law practice management CLEs
  • Join the ABA or county or state bar Solo and Small Firm Section to network with other solo and small firm lawyers.
  • Change address with your bar
  • Call your bar’s Ethics Counsel with prospective ethical questions
  • Join local bar associations

Do Not Try To Build Your Firm Alone

Although you might be a brilliant lawyer, starting and operating a law firm is a business, requiring all the skills and details involved with that endeavor. The most important thing to remember is that even a solo law firm cannot be operated alone. Get help and advice whenever possible. If you are a recent graduate of the Seattle University School of Law who might be interested in the Incubator Program that helps young lawyers build their practices, call our firm at 206-981-5043 or email us to talk with attorney Stan Perkins.