--- title: A Guide to Starting Your Own Law Firm description: For every lawyer who wants to leave a noticeable mark in the litigation sector, starting a law firm is top on their list of agendas. image: https://blog.canauri.com/hubfs/A_Guide_to_Starting.png --- - [319-383-0165](tel:+1.319-383-0165) - [Free Tools](https://www.getcryptostopper.com/free-tools) - [About](https://www.getcryptostopper.com/about) - [Partners](https://www.getcryptostopper.com/partners) [![CryptoStopper™](https://blog.canauri.com/hubfs/cryptostopper-logo.png)](https://www.getcryptostopper.com/) - [CryptoStopper™](https://www.getcryptostopper.com/cryptostopper/) - [For MSPs](https://www.getcryptostopper.com/cryptostopper-for-msps/) - [Blog](https://blog.getcryptostopper.com/) [Pricing](https://www.getcryptostopper.com/pricing) # A Guide to Starting Your Own Law Firm October 10, 2016 [Jordan Kadlec](https://blog.canauri.com/author/jordan-kadlec) ![A_Guide_to_Starting.png](https://blog.canauri.com/hs-fs/hubfs/A_Guide_to_Starting.png?width=658&height=439&name=A_Guide_to_Starting.png)For every lawyer who wants to leave a noticeable mark in the litigation sector, starting a law firm is top on their list of agendas. But the thought of leaving your current stable law firm that compensates you well to start a law firm or simply starting a law firm after completing law school can be daunting. You are never sure whether you are ready for the big and demanding venture. But, starting a law firm is not as hard as people think. # How to Start a Law Firm ## Business Plan A law firm is a business and requires a business plan before its inception. A business plan outlines your business’s growth and roadmap for the first three to five years. An effective business plan will describe the executive summary of your law firm, a marketing plan, management, and financial plan. The management plan defines who will be running the firm and how it will operate while the financial plan will determine whether it can sustain itself during the growth phase. ## Entity Setup After successfully completing your business plan, the next step is setting up your firm. Business entities common among law firms are; sole proprietorships, general partnerships, professional limited liability companies, professional associations and limited liability partnerships. The setup requirements for each entity are different and depend on your area of jurisdiction. But you must obtain a federal employer ID number, apply for permits and licenses that vary by state. ## Insurance Though not a legal requirement, having a malpractice insurance is advisable for all new law firms. About 5 percent of lawyers face malpractice charges each year. As a lawyer, you should know that the cost of litigation is higher than the cost of malpractice insurance. ## Staffing Despite the business entity you wish to operate under, running a law firm without support staff is very difficult. You will at least need a receptionist or customer service representative who will answer calls and welcome clients. ## Practice Management This is how to run your firm. You may need a practice management software to track time, bills, manage work calendar and documents at a lower cost. You may choose to run a paperless firm or keep paper files. But a user-friendly and low-cost practice management software is ideal for all law firms.   ## Small Business Network Security A law firm is classified as a small business that holds critical client information that can lead to tough lawsuits and long jail terms if exposed to the wrong people. A lawyer deals and assists all sorts of people to evade jail. As such, your firm’s data and information are of interest to many parties including private investigators who have perfected the art of hacking. To protect your clients’ information and the reputation of your business, you need to invest in a perfect small business network security system that guarantees 24/7 protection. System hacking would mean not only loss of customers but also expensive lawsuits that will taint your reputation as a lawyer. 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