How Much Does a Lawyer Cost
A lot.
“I’ve never met a poor lawyer.” “If you want to get rich, become a lawyer, doctor, or engineer.” Being a lawyer has been historically stereotyped as a lucrative career. So - is it true? Are all lawyers rich? And more importantly - does this mean that hiring one will cost you an arm and a leg?
It’s generally true that lawyers are expensive.
The average billing rate of an attorney across the US has been estimated at $275 per hour. Per hour! And every second the lawyer spends on your matter - from thinking about it on their walk to the bathroom to drafting an email summarizing key points for you - counts towards the bill. The time goes a lot faster than you’d expect. And on top of that, the vast majority of legal matters take several hours. This means that you can be in the hole for thousands of dollars for something as simple as reviewing a contract. Plus, many attorneys require retainers before they any work, typically in the thousands.
The larger the firm, the more expensive the lawyers. Many top partners charge upwards of $2,000 per hour of their time, and first-year associates fresh out of law school at such firms can cost up to $650/hour. Midsize firms are more reasonable, with rates ranging from $300-$1000/hour.
These hourly rates usually apply to all matters, whether the work is transactional, litigation, or intellectual property-focused. Sometimes firms offer flat-fee arrangements for services like incorporating a company or filing a trademark. And if you are injured in a grocery store slip-and-fall case, you might be eligible for a contingency-based plaintiff’s firms, but don’t count on it. Lawyers who work on contingency bases (charging only a percentage of what they recover rather than an hourly rate) are rare.
A rough estimate of what firms charge for various work types is below:
AVERAGE LAW FIRM COSTS
Civil Case (Litigation): $10,000+
Incorporation package: $4,000+
Trademark: $2,500+
Contract Review: $2,000+
Custom Contracts: $1,500+
Wills/Trusts: $2,000+
These numbers are high. Out of reach for folks looking for a basic contract review or getting their company off the ground. Law firms, unfortunately, price out most individuals and small businesses looking to hire a lawyer.
Your best bet at hiring an affordable attorney is with solo practitioners. Solo practitioners - like myself - don’t have the real estate and overhead expenses of larger firms. Many solo practitioners don’t even have staff and handle all invoicing and administrative matters on their own to keep costs down. These savings are passed onto our clients, who can pay rates as low as $200/hour with no retainer for the services listed above.
For example, here is the table above, updated for what our firm charges clients:
OUR FIRM COSTS
Civil Case (Litigation): $2,000-5,000
Incorporation package: $1,500
Trademark: $1,500
Contract Review: $350/hour (average invoice of $350)
Custom Contracts: $400 each
Wills/Trusts: $1,250
Civil litigation cases remain expensive because of how much time they take. But every other category’s cost is a fraction of what other firms charge - sometimes as low as ⅓ of the competition. This reflects our firm’s lean model: I’m the only lawyer and employee and the firm doesn’t have expensive real estate leases or fancy perks.
Still, $350 per hour for contract review may sound high. But to contextualize this cost it’s important to remember that lesser qualified lawyers in the field will typically charge 3 to 4 times that for the same work product. To date, our firm has not encountered other lawyers who offer rates as competitive as ours. And that’s by design.
A tenant of our firm is keeping the law accessible. Law should not just be a tool for the rich to wield as their own. It governs all of us equally and it’s pertinent that entrepreneurs and creators know how it can impact their businesses. That is why we offer low rates for our work and offer contingency or percentage-based fees for clients who cannot afford our hourly rates.
So how much does a lawyer cost? A lot - especially depending on the size of the firm you hire and the type of work you need. If you need one, make sure to shop around to find the best rate for you!
