If you are looking to set up and open a law firm in Australia, then speak to our experienced consultants who are on hand to help you every step of the way. With our partners, we can help you set up a law firm wherever you are based.
Please note that these details are guidance only and are subject to change.
Small start-up practices are on the rise, with lawyers setting up law firms across the country who are attracted to the benefits of being self-employed and the potential to profit directly from their own hard work, instead of working to demanding targets and lining other business owner’s pockets.
All this sounds very desirable however, setting up and running a successful law firm is no easy feat. Here at Marketing Lawyers, we are experienced in advising established law firms and supporting them to achieve their objectives. Taking all the experience and knowledge you can at the start and throughout your business journey will help you avoid pitfalls and find the best plan of action quickly.
Our team of consultants include experienced, chairmen, board members and owners of law firms. Their experience is useful for all aspects of setting up a firm in the quickest and most efficient way.
Before a new practice can begin operating it must meet requirements of the Australian Tax Office (ATO), the state specific Legal Services Board and Commissioner, and the Legal Profession Uniform Law Application Act 2014.
Free Initial Discussion And Quote
For a free initial discussion and for a no-obligation quote, please call us on 0330 133 8783 or email [email protected].
Taxation
The practice will need to contact the ATO and register for:
- An Australian Business Number (ABN) and a Tax File Number (TFN)
- Goods and Services Tax (GST)
- Collection of payroll tax, if necessary
- Fringe Benefits Tax (FBT), if necessary
The Practice
To meet its regulatory obligations, the practice will need to:
- Apply to the Legal Services Board and Commissioner (LSBC) for registration of a new firm.
- Obtain a practising certificate for legal practitioners.
- Attend a mandatory LIV Trust Account seminar, if you intend to have a trust account.
- Open a trust bank account, notify the VLSBC and appoint an external auditor, unless the practice will not have a trust account.
- Obtain client authorities for a new trust bank account if merging or changing business structure and trust accounts are involved.
- Take out professional indemnity insurance.
- Establish a procedure for annual LSBC statutory deposit adjustments
Employees
An effective organisational structure requires the practice to:
- Set up compulsory employer superannuation payments for employees.
- Obtain a workplace injury insurance policy.
- Establish a comprehensive occupational health and safety (OH&S) policy.
Business Structures
- Sole practitioner
- Partnerships
- Incorporated legal practice (ILP)
Sole Practitioners
A sole practitioner is a lawyer who runs their own law practice. They may employ other lawyers and non-lawyer staff, but they are solely responsible for the operations of the practice itself.
Law Firm – Partnerships
A law firm is a legal practice that has two or more partners. At least one partner must hold an Australian practising certificate. Australian-registered foreign lawyers can also be partners of law firms.
Incorporated Legal Practices
An incorporated legal practice (or ILP) is a business that can provide legal services alongside non-legal services such as accounting, financial planning, mortgage brokering and others. There are some restrictions on the types of services that ILPs may offer.
ILPs are registered as a company under commonwealth corporations law, and are controlled by a Board of Directors. An ILP must have at least one legal director who holds a principal practising certificate. The legal director is ultimately responsible and liable for any misconduct.
The legal director must ensure that the new ILP holds a professional indemnity insurance policy that covers it for the type of legal work it undertakes.
Unincorporated Legal Practices
An unincorporated legal practice (ULP) is another type of business that provides both legal and non-legal services, however it is controlled by the individual partners or directors, not by a Board.
A ULP does not have to be covered by professional indemnity insurance, however the individual lawyers who work for the ULP must each hold their own individual insurance cover.
Foreign Lawyers
Foreign lawyers can only practise foreign law in Australia in prescribed circumstances. Foreign lawyers seeking to practise Australian law must be admitted to a state supreme court and be licensed.
Setup And Support
It can seem overwhelming when considering all the different requirements needed when starting the process of setting up your law firm. You should be considering some of the following areas from the outset:
- Agreeing on management and compliance responsibilities
- Establishing a dialogue with the regulators
- Writing a business plan
- Identify competition and market gaps
- Speaking to the bank about your business plan
- Allocating a third of your time to management and compliance
- Checking if ‘loyal’ clients will actually instruct the new firm
- Identifying a network for legal work you cannot complete
- Planning to market the firm at launch and into the future
- Having an exit plan
It is advised by many to use consultants to cover the areas of skills that you may not have, so you have the highest chance of business success. It’s often daunting trying to find out all the information you need to set up your firm. We save you time and money by taking the worry off your hands.
Once the company is set up you can start marketing your services. This is the rewarding part. Fortunately, the online market can help deliver new leads and clients with SEO, PPC, optimised blogging and social media. These campaigns can give you a competitive advantage over even more established competitors. We are specialists in providing these services and many more to guide you each step of the way.
In order to sell yourself and the services you offer, you will also need a website building with tailored content that engages your prospects. It may seem like a lot of hard work getting the content written, however, we can help with our tailored copywriting service.
You are becoming a legal entrepreneur, which means there are a lot of non-legal tasks you’ll need to do to run the firm, some of the areas you can outsource and we work with a network of suppliers. This means you can focus on fee-earning and driving the business forward whilst the admin and regulatory tasks are taken care of.
We can help you create a viable business plan that is vital for developing the new firm for the longer term. It should be based on there being a sustainable and growing market for your services in which you are confident that you can compete in your area of work.
We provide management and marketing advice to a host of small, medium and large law firms across the world, Therefore, you’ll benefit from our market knowledge and best practice recommendations. We also have IT consultants who work with law firms who can advise on the best set up and systems.
Start Your Set Up Today
If you’d like to start the ball rolling on the steps to starting your law firm, call or email us today. We can discuss the next steps and outline the costs involved in setting up. Don’t worry, all your information will be kept strictly confidential.
Setting up and running a law firm can be challenging, yet extremely rewarding for those who are determined and seek the right advice and support.
We can assist with a wide range of services which include but are not limited to:
- Authorisation Documentation
- Business Plans
- Financial Forecasts
- IT support including cloud-based solutions and CRM
- Marketing
- Office manuals
- Staff handbooks
- Support your application to appropriate regulator
- Website setup
- Website marketing (Digital Marketing)
Time is often limited when you are thinking of setting up, speak to our consultants about our affordable setup and support packages. We understand that initially, it can be quite confusing and complex which is why we are here to take the worry off your hands. We may refer you to consultants or other firms for specific pieces of work due to their niche expertise. All the work we will do will be agreed upon from the start as you may require help with only certain tasks.
How To Get In Contact
As specialists in the legal industry, we can assist you wherever you are based. To learn more about how we can help you, then contact us today for a free initial discussion, please call us on 0330 133 8783 or email [email protected].
