How To Start a Law Firm in New York
Establish a Legal Business Entity
Most of our Attorney clients choose to form a PLLC business entity (Professional Service Limited Liability Company). This is a great option for solo practitioners or partners starting a small law firm in New York. Attorneys may also form a PC (Professional Service Corporation) or LLP (Limited Liability Partnership) although these two options are not quite as popular. Setting up a professional business entity will help your company become established and provides the owner with many benefits. Note, that Attorneys can’t form a regular LLC; the Department of State requires a professional entity and a Certificate of Good Standing from your Appellate Division.
Law Practice Naming Requirements in New York
The name of the your new practice should conform with the New York Rules of Professional Conduct. We do a name a clearance search in advance of every PLLC formation project make to sure that the name is available for registration and ethically compliant. [Update as of 2020, NYS has relaxed the requirements that apply to the usage of trade names by Attorneys].
Open Bank Accounts
Once the entity is established you’ll need an EIN number to open a business bank account. Lawyers in New York must also have an IOLA account for client funds held in trust. An IOLA account is mandatory and NYS uses the interest proceeds to help indigent clients. IOLA set up is simple and the bank will do it for you.
Malpractice Insurance
There’s no shortage of insurance brokers who will happily sell you malpractice insurance for your new venture. I would suggest checking around and getting some quotes based on your particular practice area. The quotes you will get may vary greatly in terms of scope and price.
Law Practice Management Software
Again, lots of options here. A quick Google search will lead to many billing platforms, payment processors, merchant service providers, software platforms, etc. I’ve had a few different systems in place until finding my current system that allows new clients to easily pay online.
Hang Your Shingle
Once the company is set up you can start marketing your services. This is the fun part. There are so many ways to connect with potential clients the possibilities are endless. SEO, PPC, traditional advertising, networking, co-working, referrals, blogging, etc. It will take some time to hone your strategy, but once you do the phone will start ringing. For me, it only took about 2 months until I signed my first client. [Update 2025: Phone calls are by appointment only now. Our phone rings non-stop every day, all day].
If you’re interested in starting your own law firm in New York contact us for a free phone consultation.