How to start a law firm: a step-by-step checklist

1. Decide what kind of firm you are building

Start with focus. Choose the practice areas you will offer and the clients you want to serve. A focused firm is easier to market, easier to price and easier to run because you build repeatable processes. Ask yourself:

• Which matters do I already handle competently?
• Who are the clients, and how do they look for a lawyer?
• Do these matters pay hourly, flat fee or contingency?
• Will I practice alone or with partners?
• Will I work from an office, from home or virtually?

2. Write a short business plan

A law firm business plan does not need to be long. It should answer: what services you offer, to whom, at what prices, how clients will find you, what it costs to operate each month and how long your savings can carry the firm until revenue arrives. Estimate your monthly overhead (insurance, software, rent, bar dues, marketing) and the number of matters needed to cover it. Revisit the plan every quarter.

3. Choose a business structure

Common options include a sole proprietorship, a professional limited liability company (PLLC), a professional association or professional corporation, or a limited liability partnership for multiple owners. States regulate which entities lawyers may use and may require registration with the bar or the court. Consider liability, taxes and administrative burden, and talk to an accountant and, where helpful, a business lawyer.

4. Handle registrations and bar requirements

• Register the entity with the state and obtain an EIN.
• Check local business licenses or tax receipts required in your city or county.
• Confirm your firm name complies with your state's rules on firm names.
• Update your bar membership records with your new firm address.
• Review advertising and solicitation rules before you market.

5. Open bank accounts, including trust

Open a business operating account and a client trust account. Most states require lawyers who hold client funds to use an IOLTA account at an approved bank. Read your state's trust account rules before accepting the first retainer, set up a ledger for each client and plan to reconcile monthly. Our guide what is an IOLTA account explains the essentials, and trust accounting software keeps ledgers in order.

6. Get insurance

Professional liability (malpractice) insurance is mandatory in some states and strongly advisable everywhere; some states require disclosure if you do not carry it. Also consider general liability, cyber liability, and business owner's policies. Get quotes from several carriers and ask about prior acts coverage if you are leaving another firm.

7. Set up your technology

A new firm can run on a small, reliable set of tools:

• Practice management software for matters, contacts, calendar, documents, time, billing and trust. See legal practice management software.
• Email and calendar on your own domain.
• Document drafting tools and templates.
• Secure client communication such as a client portal.
• Payment processing that separates earned fees from trust deposits.
• Backup and security: strong passwords, multi-factor authentication and device encryption.

Choosing one platform early saves migrations later. Solo lawyers can start with software for solo attorneys and grow into it.

8. Build your systems before the first client

• Conflict checking: search every new prospect and adverse party against your records.
• Intake: a standard intake form and checklist.
• Engagement letter: scope, fees, expenses, billing schedule, termination.
• Matter templates: standard tasks and deadlines for common matter types.
• Calendaring: a reliable process for recording and double-checking deadlines.
• File retention: a written policy for closing and retaining files.

9. Set your fees

Decide how you will charge for each service: hourly, flat fee, contingency or a hybrid. Research the local market, consider your experience and calculate the price needed to cover overhead and pay yourself. See how lawyers get paid for how each model works.

10. Plan your marketing

• Tell your professional network you have opened a firm; referrals usually come first.
• Build a clear website that states what you do, where and for whom.
• Set up a Google Business Profile with accurate address and hours.
• Publish helpful answers to the questions your clients ask.
• Join bar sections and local organizations where your clients and referrers are.
• Follow your state's attorney advertising rules.

11. Open your doors and keep learning

The first months are about delivering excellent work and refining your systems. Track how clients found you, how long matters take and where time is lost. Review your numbers monthly: revenue, collections, unbilled time and trust balances. Our guide on how to manage a small law firm covers the next stage.

Starting a law firm checklist

This checklist is general information, not legal, tax or ethics advice. Requirements vary by state; check your state bar's resources for new firms.