Law firms are businesses started and operated by a single attorney or quite a number who practice law. The law firms usually are started to provide services in a specialized area of law or the whole law. Law firm members share clients and profits . Law firms usually provide legal advice and representation for businesses , professionals and individuals. As an attorney there are a number of factors that you need to consider before setting up a law firm .
First of all, lawyers need to choose the business structure. Go ahead and consider if you are going to practice sole practice or in a group. Unto the second factor you at least need to create a business plan before setting up a law firm . You may setup a law firm or law firms but first learn what area of law are you going to specialize in and the means through which you can get market.
With an effective plan,it would be possible for lawyers or a lawyer to understand where to get investment funds, where you will be based as well as the solutions for risks and contingencies arising in the ordinary course of the business.
Every law firm needs to obtain a commercial insurance the professional indemnity insurance which is very necessary for their practice. At least have a minimum of PII cover from a well established insurance provider.
There is need for insurance because it will shield the business against unforeseen circumstances and many other things. They should take up policies that have been proposed not just any policy. Be ahead of statutes and think of what you are going to spend until the completion of the firm. Finances are avery sensitive area,so take up realistic forecasts to determine the exact amount to be used throughout the whole process of setting it up.
This is necessary because it takes time to generate a new business as well as get payments from new clients.
Law firms Ned to be approved so as to start running legally and according to the rules of the land. Not only authorised to practice,the law firm has to obtain an authorusation of a compliance officer for legal practice.
When you are approved at least you know that the law firm is operating under legal instructions and appropriate documentation. Get to understand all the accounts rules and must comply with them ,if the lawyer or lawyers setting up a law firm are not well educated in that area they must do so very fast. Lastly, consider taxation by engaging your accountant with finances and the tax side of your business. Usually pay as you earn is what is used by most law firms to pay taxes. Law firms can’t avoid to comply with the above factor,registration for Value added tax and possibly the law firms should know how to make returns on their investments.