How to open a legal consultation office from scratch? Sooner or later, every hired lawyer thinks about creating his own legal advice. Lack of career growth, problems with superiors, or a fixed low income with a large amount of work may be the reasons for wanting to work for yourself.
And the endless stream of clients, mostly associated with the illiteracy of our population or with constantly changing laws, which are simply impossible for an ordinary person not related to this industry to keep track of, makes this type of activity very attractive for generating income.
After working for several years in an office that provides legal services, you can get a very clear understanding of what kind of advice is in demand among the population. Based on this experience, you can make a list of the most profitable services and provide them in your future company.
But can only a lawyer open his own business in this area and is it so easy to bring this idea to life? So, how to open a legal consultation?
If the presence of the phrase “legal advice” in the name of your organization is not important, the opening process will be a little easier. Theoretically, to create a firm that provides legal advice, all you need is money savings and determination.
However, it is much easier to start such a business if you have not only a higher legal education, but also experience as a lawyer.
If it is necessary to create a legal consultation, the requirements become more stringent. In addition to having the appropriate education, you will need to obtain the status of a lawyer, because only they can use the phrase “legal consultation” in the names of the offices being created .
To obtain such status, you will need to work for some time as an assistant to a lawyer, obtain permission to take the exam and pass it, and take the oath. Once you have successfully completed the path to becoming a lawyer, you can begin to study the instructions for opening your own office.
To organize a business in the field of legal services you will need:
- go through the stage of registering your activities;
- rent or buy premises;
- purchase consumables, equipment, furniture;
- select qualified lawyers;
- advertise the office.
We will consider the features of each step in detail below.
How to start a legal services business
You can register as a legal entity or an individual.
Large legal agencies register as legal entities, but this is not at all necessary for a novice consultant.
Having become an individual entrepreneur, you can work in the same way, including renting an office and hiring employees.
This will greatly simplify registration and reduce the tax rate.
Several lawyers registered as individual entrepreneurs can organize a partnership with a common office, transferring to each other those clients whom, for one reason or another, they cannot serve themselves.
It would be worth mentioning that according to the law of the Russian Federation, the term “legal advice” in the name of an organization is permissible only when the founder is a lawyer.
As for paying taxes, a novice businessman should turn to the simplified taxation system (STS), where the income rates are:
- 15% - minus all expenses of the organization;
- 6% - excluding expenses.
Since the costs for a small legal organization will be very small, this taxation scheme is best suited.
In criminal court, only a lawyer can defend a client, so the new law firm undertakes only consultation in this area.
But besides the criminal sphere, there are many others: civil, family, business, corporate.
Several good specialists in these areas can provide the company with good income.
A novice businessman should not forget that, unlike criminal law, civil law often undergoes changes and additions, so lawyers in this area will have to constantly update their knowledge.
At the very beginning of your legal advice journey, you should focus on one or two areas.
This way it will be easier to cope with only a few employees, and with the stable development of the organization, you can think about expansion.
It is very important to immediately and clearly define the scope of service provision. The choice must be made not only based on personal interest, but also on the need to make a profit.
It is best to settle in those areas where two things will be present at the same time: problems and money.
Business comes first, of course. There are always enough problems in business, but they usually don’t skimp on money to solve them. Real estate and family affairs are also a good source of income.
But it is better to avoid such areas as pensions, benefits and loans, because clients from this area often have money problems, which means they may not pay for the work done.
Having decided on the scope of activity, it is necessary to set prices for the services provided.
Some novice lawyers provide free consultations, thereby hoping to attract clients, but all they achieve is an influx of “freeloaders”, because of which they may miss out on a truly worthwhile client.
It is better to immediately decide on prices and work only for payment.
Starting a business
You can open a legal business from scratch without the appropriate education. There is no need to have a diploma from any university that trains lawyers in order to provide legal services to the population on a paid basis. If you are literate in the field of law, have encountered this more than once, and had to run your own practice, then you can easily do it for money and without a diploma.
It so happens that people who are faced with certain life situations turn to court to resolve complex issues. Taking an active part in the judicial process, delving into the intricacies of the current legislation, such people may come to the conclusion that they understand it no worse than qualified lawyers.
For example, if a person went through a difficult divorce process on his own or with a lawyer, and used the acquired skills to help acquaintances and friends who found themselves in a similar situation, then he can help others in this matter. It is practice that makes a truly qualified lawyer, and not diplomas of different colors and shapes.
And if there is no such experience, then this is not a reason to give up on this project. There will always be those people who have both diplomas and some experience. Moreover, they are ready to work for hire honestly and conscientiously. Not everyone believes that individual entrepreneurship is simple and accessible to everyone. As strange as it may sound, there are also many legal scholars for whom the idea of starting their own business is not even in the realm of their dreams.
You need to choose a specialization. The legal services market is saturated precisely because of the availability of this project. It is difficult to compete successfully in all areas of law. Select one or more directions. If you have experience, as stated above, in divorce proceedings, it is necessary to specialize in it.
The only thing you can’t handle without a diploma and a lawyer’s license is criminal cases. Only criminal proceedings require appropriate education and qualifications.
Where to get clients for a law firm
Before opening the doors of your office to clients, you should ask yourself the question: “Where can I find these clients?” This issue is resolved with the help of advertising.
A potential client can be attracted by a bright sign at the entrance to the office, an advertising leaflet, a line in a newspaper and, of course, a page on the Internet. I came across a rather interestingly designed Internet page of the KORD law firm - you can see how specialists present legal business on the Internet.
However, the best advertising is recommendations. A brilliantly won case can start a chain reaction with the clients' relatives and friends.
Hiring staff for legal advice
Even if you have experience as a lawyer and good knowledge of the law, it is recommended to hire assistants. Depending on the services that are planned to be provided, the staff is formed. It is better to start work in several directions and gradually expand, rather than trying to cover all areas from the very beginning.
At the initial stage, you can limit yourself to two lawyers with whom you will work together. As the client base expands, the following units can be hired:
- lawyer for working with individuals l.;
- lawyer for work with legal entities l.;
- secretary;
- legal consultant;
- cleaning woman.
To keep records of expenses and income, you must have an accountant, however, you can use special companies that will keep records at a distance. The quality of services provided in such accounting agencies is at a high level, and their work is cheaper than introducing and paying for the labor of another staff member.
The secretary can also be hired at half the rate and his work done remotely. Responsibilities will include answering phones, scheduling appointments, and providing consultations.
Workers for a law firm office
In addition to the consultants themselves, there must be a manager in the office.
It is on his shoulders that responsibility falls for telephone communications with clients, scheduling meetings, and solving other problems that lie outside the legal sphere.
It is better to hire a person with some knowledge in the legal field for this position.
For example, a law student or just a lawyer who prefers “sedentary” work.
Why does a manager need knowledge in the legal field:
In order for him to be able to independently offer clients a general strategy for solving their problems, he could sign an agreement on the provision of services and execute a power of attorney with a notary in the event that the specialist is not on site.
The next, no less important specialist will be an accountant. While a small office can do without it, a company with a large staff needs it.
It is not necessary to look for a specialist who will constantly “hang” in the office.
You can, for example, look for a remote employee. After all, you can keep reports and issue payment orders without leaving your home. Such accountants, as a rule, work with more than one company and employ slightly fewer full-time employees.
To avoid scaring off clients with dirt, you should hire a cleaner for your office. This, in principle, is all the necessary personnel for the normal operation of a legal organization.
Over time, legal services will become more and more in demand.
Therefore, business in this area will definitely be profitable. Professionalism, good advertising and a well-coordinated team are the main key to success.
Consulting and call center
An interesting business idea would be to create a legal consultation. The advantage of this idea is small financial costs from 100,000 rubles. This amount includes:
- individual entrepreneur registration;
- office rental;
- purchase of office equipment and furniture;
- website creation and promotion.
Consultation with a lawyer can take place not only online, on a website, but also at home. A lawyer can come to the client’s home at any time and resolve all issues. When recruiting staff, pay attention to the person’s computer skills, since the lawyer will have to deal with the issue of consulting on the site, maintain a question-answer section, and also answer questions in his personal account.
An idea for a business like a call center would be to provide legal services around the clock. Several employees will answer customer questions 24 hours a day.
To attract clients, create discount programs, for example, the first visit of a lawyer to your home is free. Disseminate information about your company on the radio, in magazines, and newspapers.
What documents are needed to open
Before registering an individual entrepreneur or LLC, you need to find premises in which services will be performed and people will work, and draw up a lease agreement. This premises will be included in the documents with the legal address of the bureau. The prepared package (for individual entrepreneurs, passport and application, except for the lease agreement) should be submitted to government authorities, or, alternatively, to multifunctional public service centers (MFCs). It is recommended to open an account with a banking institution for non-cash payments.
What is the best way to organize advertising of legal services?
The next mandatory step after opening a law office is to resolve the issue of advertising. The very first marketing moves are making signs and business cards.
For the rest, recommendations from first clients and acquaintances will help. Be useful to your target audience, and your reputation will earn you. In 90% of cases, if you provided a good service the first time, the next time the client will turn to you again, and not to a competitor.
You can organize targeted advertising of legal services: in this case, having opened a business, you make commercial proposals to organizations on how best to launch this process, we will tell you further.
Let's say you offer free legal advice to newcomers to the market. You can inform them about this at personal meetings and negotiations. Direct mailings to business managers are effective. Start your letters with an address that works much better than the faceless “Dear Leader.” Do not be lazy to clarify the names of the officials you will contact.
After such a targeted campaign, you will have everything you need to open a law firm: contacts of potential clients and support from specialists in related business issues on the basis of a mutually beneficial relationship.
After the main organizational issues have been settled, it is worth starting to develop the website. Strict design and maximum information on the topic (prices for services, useful materials, etc.) will help with promotion. Along with the website, keep a blog, publishing posts with practical advice from lawyers that are useful in everyday life.
Relevance and types
Legal services are one of the few types of business activity that remains relevant at any time, including periods of crisis and falling income levels. And in recent years, in the world and in Russia, in particular, there has been a tendency to increase interest in the competent protection of one’s labor and social rights.
As the economic situation improves, the demand for the services of lawyers and notaries is only increasing. So, if you have deep knowledge of the issue and a well-prepared business plan, you can make very good money by providing legal assistance and advice. Even if there are already large companies on the market that can compete.
Law firms are classified by size and number of employees. Summing up both factors, we get the following varieties:
- Boutiques - specialize in solving highly specialized issues for a lot of money. The company employs from 5 to 10 full-time lawyers of the highest qualifications.
- Large companies with a staff of about 50 employees. Provides services in various areas of law.
- Specialized firms are small organizations that specialize in one area. They mainly provide support in the preparation and execution of documents and registration of rights.
You will also need to indicate in the plan one of the areas of b2b (business to business) - working with corporate clients or b2c (business to client) - private consultations or assistance to private clients. It is possible to work in both areas at once, but a larger staff will be required, since private and corporate law have many differences.
Where and how to look for clients
Pay enough attention to such an item of the business plan as advertising. Its goal is to make the business recognizable and outline a list of advantages for customers.
Since the Internet is now the most popular and widespread means of communication, you should not neglect it to advertise your business. Create a beautiful website that presents the company and talks about the services provided. Don't forget about the possibility of contacting you via email or online chat.
Create and print business cards. It will be enough to indicate basic information about the business - range of services and contact details. They can be distributed to your clients, as well as in all relevant places - courts, companies, etc., where employees will go to resolve various issues.
A less effective way to advertise such a business is through leaflets. They should be distributed near courts, police stations, tax offices, etc. Place advertisements in local media. Good results are achieved by cooperation with law enforcement agencies and various authorities where individuals and legal entities apply.
The greatest attention should be paid to searching for legal entities as clients. To do this, think over a profitable offer for subscription services, make cold calls to organizations, conduct trainings and seminars on legal literacy for organizations.
Advertising will be a necessary item in the business plan only in the first year or two of work; in the future, if you establish yourself correctly, clients will be attracted by your reputation. Make a plan for your advertising campaign; it should not be disjointed. You don’t have to use all channels at the same time, but put them in the plan one after another and experimentally check which method brought more income.
Individual entrepreneur
Advantages:
— simplified procedure for state registration /constituent documents are not required for registration/;
— simplified accounting and reporting system;
— the ability to independently make decisions within the framework of its activities, without complying with the requirements for the need for a majority vote, etc.;
— there is no need to contribute funds to the authorized capital.
Flaws:
- the entrepreneur is liable for his obligations with all his property.
- from the point of view of attracting investments, individual entrepreneurial activity is the most inconvenient for attracting funds, since a potential investor does not have the opportunity to obtain an appropriate “share in the business”;
- when carrying out individual entrepreneurial activities, problems may arise when selling the business - the entrepreneur cannot sell the business, he can only sell his assets that belong to him as personal property.
