Here are some things to consider...  By Nicole Holas

Consider this hypothetical situation. You are a lawyer who wants to start your own firm. What do you need to consider? In no specific order, here are some topics to ponder before you leap into the world of solo practice.

KNOWLEDGE
When you work on your own, you lose the colleague down the hall with whom you discussed files. However, you can join a CBABC Section, if you haven’t already, or consider finding a mentor. The CBABC offers a Mentoring Registry, and the CBA B.C. Women Lawyers Forum operates a mentoring program. As an added bonus, The Law Society of British Columbia (LSBC) accepts mentoring as an accredited activity to fulfill a lawyer’s Continuing Professional Development.

FINANCING
Opening your own firm has a mystique about it. You imagine you’ll bring home more money, because you’re not giving 55 per cent of your billings to the boss. Unfortunately, most of your billings will be going to your firm. You will need to pay for office space, process servers, CBA and LSBC fees, continuing education courses, books, computer equipment and software, etc. Consider sharing office space with another lawyer. By sharing an office, you can share costs and possibly have a colleague with whom to discuss issues.

Or you may want the convenience of working at home, and use a “virtual office” to meet your clients. Whatever choice you make, you need to consider the tax implications and speak to an accountant. Also, consult an accountant if you own a vehicle and want to use it for work purposes.

To cover your initial start-up costs, consider a business line of credit or small business loan. Also, consider your personal takings and your firm’s operating costs.

ACCOUNTS
As a lawyer, you are ultimately responsible to your clients and the LSBC for your accounts. Know the origin of every dollar deposited, and the destination of every dollar withdrawn by having signing authority over all of your accounts. Know the difference between a General and Trust account and keep your personal accounts separate from your business accounts.

Ensure you know the LSBC Rules regarding trust accounts. A bookkeeper who understands legal bookkeeping is a valuable asset. Talk to your colleagues for referrals. Also, consider hiring an accountant to assist you with your taxes.

CLIENTS AND CLIENT FILES
To invite your current clients to follow you to your new practice, refer to LSBC Professional Conduct Handbook. To attract new clients, you can enroll in the CBABC’s Lawyer Referral Service. If necessary, refresh your knowledge of the LSBC Rules on Client Identification and Verification. 

LEGAL ASSISTANT
Your legal assistant is a valuable member of your team. She can perform various administrative tasks, leaving you to focus on legal matters. As the lawyer, you are responsible to the LSBC for any work your legal assistant does or does not complete. Outline your assistant’s roles and duties in a written contract, and include wages, vacation entitlement, and performance expectations.

Your assistant’s education and experience requirements will depend on your areas of practice. Ask for references and talk to all of them. Find out how your potential assistant performs under pressure, how well she communicates and how she responds to criticism. Remember, your assistant is an employee, and not a friend, no matter how close the two of you become. You need to feel comfortable correcting/coaching her as needed, because your reputation and livelihood could depend on it.

Before you venture down the fulfilling, thrilling road of solo practice, talk to a Practice Standards advisor at the LSBC.

Nicole Holas, Lawyer.

This article was published in the December 2011 issue of BarTalk. © 2011 The Canadian Bar Association. All rights reserved.