Cost of Having Own Office?

shredder, scanner, billing software, invoicing software, legal research software (i.e. westlaw), mailing, duplication, binding costs. office supplies (highlighters, clags, paper clips, binder clips etc etc).

So the desk, chair, filing cabinets are all included?

Maybe a budgeted amount for some advertising in addition to the bus cards?

Good luck in your new venture :)

You've gotten great advice already. My sister is an attorney who works from her own little office. She does not pay for a fax service, but instead found a program online that gives you a fax number and sends the faxes to your email. She loves loves loves it because she can get faxes while on the road. Spend more on a printer so you get a good one that can scan and print large documents quickly. Probably $350 rather than $140.

One of my friends rents an office for her mediation practice (she's an attorney but prefers mediation to litigation). She always has coffee and snacks for her clients, so I would include things like a Keurig ($100-200 depending on the model, plus the cost of K-cups) and a mini fridge for storing milk, cream etc. I think she has a microwave too, which is good for her when she's had a long day and wants to heat up something for dinner. A nice touch is that she uses real cups, plates and silverware so if there is a sink in the building where you can have dishes done, you'll want to bring in some dishware. I think most of the attorneys I have met with have also had water handy - some with a pitcher and glasses on a tray and some with bottled water. If you go with bottled water, that will be an ongoing monthly expense.

The big thing that is missing to me is furniture. Are you perhaps moving from a home office and bringing that with you? If that's the case, make sure that your own desk, credeza etc. are nice enough for a client to see and be sure to add in a table and chairs for your clients. Lighting is important too - even if there is overhead lighting in the space, you'll want to have nicer task lighting.

Depending on the volume of your business, I'd say $150 is low for office supplies. Paper and printer ink get costly, and if you'll be creating hard files, maintaining records, mailing documents, you'll have to factor in postage, envelopes, etc. I'd probably budget $500 for all of this, again depending on the volume of business.

If you have a waiting room/area and bathroom, janitorial supplies or services will also be a factor.

What about other forms of advertising?

I'd also look into renter's insurance.

The last time I looked into Quickbooks (two years ago), if you buy the software and install yourself, it's a one-time fee, but then you have to buy new software as it is released. If you get the on-line version, it's more of a yearly subscription thing, I believe. Computer stuff changes so rapidly, so check this out.

Good luck with your venture!

J. F.

Where is your advertising budget? sorry - but if you don't advertise - no one will know you are on your own and working....don't forget to talk with your local newspaper...get your name out there!!! Find out if they will do an article on your new practice....

are you sharing an office? as $450 sounds really low for rental fees. Do you have to sign a long-term lease? Are you comfortable enough in your abilities and clients coming in the door that you will be able to sustain the lease for long-term?

Furniture? I don't see furniture costs...you don't want "junk" furniture. I know when I walk into a lawyers office - I don't want over-the-top, but I don't want cheap either.

Quickbooks Pro is about $200 - it will help you amortize your furniture and equipment - invoices, AR/AP....and you pay for your subscription and updates annually. You could hire an accountant - on as-needed basis. That will help you with the tax laws, etc.

Fax? I would make sure the that printer I purchase is an All-in-One - and have dual phone lines - I would also ensure that I have a laser printer instead of an Ink Jet as the Ink Jet costs more in ink per year than a laser.

Signage? Will they "paint" your name on the door? What about out front so people know you are in there?

Fees for yellow pages listing....so customer's can find you.

Internet Home Page - find someone to design a web page for you - anywhere from $250 to $2K. And then you will need to pay for the domain name...you can try something like Godaddy.com

The malpractice insurance seems low...I know our business insurance for the work we do is higher than that.

Do you plan on having a receptionist or handling everything yourself?

Answering machine/service? I guess it would help what type of law you are practicing.

Shredder or data retention services - I personally don't like "the cloud" - it's not that secure yet...so what do you need to shred and what do you need to keep? If you don't want documents from old cases in your office? I would find out the cost of a documentation/archive service that will come and box the files and secure them.

What about law books? Do you already have them or are they owned by the firm your currently work for?

is there a law resource center you should or can be a part of?

Linkedin - it's free - but if you want to connect with other people and have messages, etc. - it's a fee - $49.95 per month or a flat fee of $500 per year.

I think it's exciting you are doing this!! YOU GO!!!

I think you might check into the cost of replacement ink or toner for your printer. We have a Brother Laser all in one printer for high volume copies. When I have to buy 4 colors of ink it runs me about $240-$260 and that is from a discount on line toner supplier. When I buy them at Staples it is $90-$100 for each. You will also need to buy some computer security software. Good luck! Networking is a great way to build your business. Is there a local chamber of commerce in your area. If it is not too expensive or they have a newcomer rate, you might try that. You may also need to pay for a listing in the yellow pages and in the white pages.

Sounds like you are on target. As a business owner and running my company from my home, here is a run down of our costs.

Will you be running payroll, etc with QuickBooks and paying your taxes through QB? If so, the actual cost will go up. Example: I just upgraded to QuickBooks Pro 2013 for about $230. I do not subscribe to the QB online service which can be around $1000 per year. My QB "tutor" who runs her own accounting firm from home, runs all the online through QB and she can have up to 6 or so people affiliated with her subscription and use her subscription. That is what I do. So I do run everything through QB, online pay taxes, file reports, etc BUT she allows me to stay on her paid service because for a company that only has 3 employees, it is pretty expensive to justify the subscription. In return, she tutors me when I need it and I pay her an average of $500 a year for her services.

Fax service.. we use E-Fax for receiving and we pay $16.95 a month. The fax comes to your email.

We have a bundle with Time Warner with 1 digital phone line, used exclusively for faxing, digital tv and turbo internet. About $140 a month (includes the DVR and extra box)

Computer... depends on what you love. My Dell XPS 14Z is a little over a year old and I LOVE it. No issues whatsoever. I did pay just less than $2000 and it is loaded with software I need, plus the special service plan where they will come to my house and repair if needed. I would use a MacBook Pro like my daughter's BUT I would not be compatible with my CPA and QB tutor so it was not worth that move for me.

We just paid $400 after all the taxes, extra print cartridges, etc for a new HP all in one printer. Before we had add on's it was $259. It will also manage legal sized paper.

Business cards... I get from Staples not very often. $30 for 100.

I don't know anything about the insurance for you. We do have insurance which covers our materials in case of complaints, damage, etc. and it is around $1000 a year.

We also pay warehousing which can be anywhere from $500 a month to $1000 depending on how much inventory we choose to hold. Also factor in the freight in/out for warehousing as well as our regular pickup. The freight costs get weighed in with the actual sales of our products.

Best wishes to you!!

Wow! Your malpractice is only $1000 a year? Are you sure about that? I would spend much more then that and get a printer that will really last. I think you need an equipment replacement budget, as well. Computers, printers, they all break, need repairs, and need updates. Your misc. supplies should be higher. Printer ink alone will eat that up. What about office furniture. Do you have that? Both for you and clients. What about supplies for a restroom, if there is one in your office? What about marketing and advertisements? Do you plan on doing that? If so, budget for it.

What about furniture? A desk, perhaps a credenza and a return, a chair for you and two guest chairs would be pretty basic. There's a lot of good used stuff around if you look.

I am a law office mgr and handle all the purchasing as part of my job.

I think you are a little low on the misc supplies. You will need an "all in one" copier+fax machine and an adding machine w/tape. Banker Boxes are very expensive. Folders, labels & paper are all recurring costs throughout the year.

What about court costs and filing fees? Do you have a reserve for that. Do you have a bank account and a trust account for any client monies you take in? What about biz checks?

At some point, you need to pay your quarterly taxes, so you must put aside money for that. Are you getting health insurance via a spouse? Also, money for your own 401K...you must figure your own employment costs too. I know you're thinking, "I'll catch up when I get some money coming in", but if you're making a biz plan, these are things you should include.

Be sure to investigate biz services via Costco or Sam's Club. They saved me a ton of money when I set up my former husband's dental practice. Best of luck!

You'll need to buy/lease a copy machine. You can get one that prints, faxes and scans. The lease will probably be in the neighborhood of $150 or so per month and then you will have a maintenace agreement and insurance.

Advertising costs - either phone book or online.

Your misc. supplies may be as little as $150 per month,. but for the first month or so, probably much higher unless you already have a bunch of supplies.

A case of paper will run you right around $30,. give or take $5. Then you'll need your nicer stationary and matching envelopes at the very least. Then there are file folders, labels, etc.

You might want to add in some money for printed research materials (Evidence Code or the like that you can carry to court for use during trials, etc.), dues for professional associations/bar dues, cost of continuing education

I'm sure there are more; this is just what comes to the top of my head.

Good luck in your new practice!