Legal business

The question how to open a law firm set usually lawyers who are tired of working for hire. Although in order to open a firm, it is not necessary to be a lawyer. This activity is not licensed and register a firm can anyone. With the exception of protection services in the criminal process – this requires the status of a lawyer.

For the stable operation of the law firm managing needs to be first and foremost a successful businessman and a lawyer may not be. The Manager must be able to attract customers and select qualified staff of lawyers.

Organizations engaged in providing legal services have the right to use simplified tax system (STS). Let me remind you, under this system of taxation may be two rates.

6 %, if the object of taxation is income.

– 15% if object of taxation are the incomes reduced by size of expenses.

Most law firms in our country specializiruetsya on the provision of services for registration, re-registration and liquidation of legal entities the reason is not only because it is one of the most popular services, but also low thresholds for market entry. 

This work does not require legal qualifications, and consequently the personnel costs are minimal. For such company two people are enough, even without higher education. But this kind of activity is becoming less profitable due to furious competitionand dumping the big players like “Registrar.

Specialization has some advantages, but also imposes severe limitations. In my opinion, more competent legal business must be based on a wide range of services, where registration of companies would be just one of the types of services. The most interesting in terms of revenue, are in the field of b2b (Business to Business) – service entities. Here the competition is lower, especially in the field of small business. Big businesses prefer to use the services of foreign consulting companies.

So before you open a law firm, it is necessary to have a plan for the future, to decide on the strategy. If you focus on the growth and expansion of the range of legal services, then this is require qualified lawyers. A company registration of legal entities realized that they had reached the ceiling within a narrow specialization, and expand the list of services. It is easier to implement than to start from scratch, from offering a wide range of legal services, which requires significant investment.

The lawyer in this plan easier. It has the ability to start a legal business from scratch and without attachments. As I did with partners, accumulated customer base, while also working on hiring, and then opened an official office and registered company. But I started with providing services only for individuals and individual entrepreneurs. And only after the official opening, began to focus on legal entities.

What costs are required to start? Reveal the figures for his office, although it is not an indicator.

The initial costs were as follows (the prices in Moscow.

OOO was already there, so costs of this article were not. And so the registration will cost on average 20-30 thousand rubles, of which 10 000 – 15 000 rubles worth legal address. If you register yourself, you can save about 10 000.

Furniture and office equipment – 50-60 thousand rubles.

Rental and repair – 60 thousand rubles.

Other expenses (telephone, Internet) – 30-40 thousand rubles.

In our case, lawyers to hire was not necessary, because the specialists themselves. And so we should expect that the minimum wage of a lawyer in Moscow 30-40 thousand rubles (the level of qualification is a separate issue.

Still need a Secretary, but the first couple months we didn’t bother. And then hired a man that worked at home: took calls and kept appointments. When were in the office, sometimes switched the phone on and took calls. Technically it’s just to organize. Of course, you can hire a professional call center, but it’s when the flurry of calls, and self-organized virtual assistant the quality is not inferior, if done correctly. The question price – 7 000 rubles per month. Services Call center – 11 000 roubles at a time and 9 000 rubles per month, i.e. still two to three times cheaper than hiring a Secretary in an office and organize the workplace.

About the accountant and say no – definitely outsourcing (accountant). We have a simplified tax system and, accordingly, a simple accounting. Services are 2500-5000 rubles per quarter, depending on workload.

Just at the start in the first month we spent about 200 thousand roubles. The breakeven point came in the second month, but thanks to the already existing database of clients and current orders.

It should be borne in mind that we have used the classical scheme of the company, which allows us to significantly reduce costs, which will be discussed below. Therefore, when calculating a common business plan these figures must be multiplied by three times, and when the company will be payback depends on the art Manager.

We implemented the scheme works as follows. Initially the orders were fulfilled completely. Over time, expanded the list of services through the affiliate network. It’s a criminal lawyer, realtor, auditor, recorder and others. Difficult to find a bona fide ACE, which efficiently serves customers, or you may hurt your reputation. And negotiate about partnership, because it is a mutually beneficial cooperation.

Of course, this is one possible implementation of the orders. I only describe your personal experiences and your journey organization office.

This arrangement provides the following advantages.

– minimal overhead (rent, salaries, etc.

– high quality of services, the control of which is not required because each partner cares about its reputation.

income proportional to cost, resistance to seasonal lull.

– mobility and flexibility in choosing the location.

The main advantage of such approach is that set the best ratio quality/price services.

The desktop version of the work of the law firm involves renting a solid premise and a staff of lawyers and their assistants. In this version, see serious disadvantages.

– significant rental costs (in Moscow especially important.

– more stringent conditions in the selection of the room.

permanent high costs for the salary, regardless of seasonality.

– other costs are also significantly rise (organization and maintenance jobs, a more complex accounting.

– choose the staff harder than partner, as an employee is a dark horse, a private person or firm has a tried and tested reputation. In addition, to change the harder worker than a partner.

– less stability in work because of employee turnover.

– quality of service worse staff lawyers do not care about reputation.

– the cost of time and effort to control the execution and to work with staff.

For this option we still will come with time. But in order to maintain a quality level of such costs will need to significantly increase prices, and thus engage in more fierce competition. Either you need a huge amount of orders that will allow by reducing margins to maintain the level of price/quality.

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Hi! Thanks for the interesting and informative posts that really apply! Added to my confidence :-).Work as a lawyer in a large company, experience of 8 years. Grew up mentally from wage relations. I want independence,tired of promises of wage increases, and the pressure head at any issue. I know and understand from the first time that from me in solving the problem, but if there are awesome risks, give voice to them, looking for other options (often 12 hours a day) and I stare at you and repeat only because I said and did . Unjustified and stupid when you can get around and come to the desired solution from the other side. And this is all despite the fact that are considered the best lawyer in the company, the loss in the courts were 10 percent out of 100.Tired. With a colleague want to create Yur. firm. But the problem is that we have a small city of about 70,000 population :-(. will have to look for customers in the areas. I agree with You that the best the desired goal is still service legal. . a Little scary, but the desire overcomes the fear for the sake of independence! Thanks for the article.

Yes, the main customer base to turn out. If you’re also dedicated to work on yourself, success is imminent. The problem is that, over time, begin to relax and even 8 hours to plow laziness.

Hello, Gennady! I enjoyed reading Your article about the organization of the business, I agree almost 100%, I am self-employed since 2005, first as a lawyer, now as a PI. Share if you have experience regarding customer service organizations. As well as raised the level of self-discipline.

Good afternoon, Gennady! My legal experience is 10 years. As well as the Marina, tired to work for his uncle . Your post was very useful for me,it is called from the practice , with real examples and recommendations, for which many thanks to You. I agree with Your point of view, before leaving to sail it is advisable to have already established customer base. I’m also still employed, but something with a client base tight. Could You share Your experience in solving this question is at the initial stage? Thank You in advance. I Wish You Success.

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