Small Business Lawyer Cost and Other Legal Expenses

Startup Business Lawyer Fees and Other Legal Expenses

How much are attorney fees for startups? What are the monthly legal fees for a small business? Most small business owners believe hiring a lawyer is not worth it, they argue that it is too expensive, do you also agree with that line of thought? No matter how small or big a business is you need a business lawyer to help keep things in shape both in your presence and absence and help legalize the affairs of your business.

It is very easy to kill a business at its initial stage when it has little or no backing by a lawyer; even your competitors want you dead for their own good. Hence the need to hire a lawyer who will help stabilize things.

But how much would one need to hire a good lawyer for his business, what are the factors that affect the cost?  These questions will be discussed in detail in this article.

What Factors Influence Small Business Lawyer Cost?

When you ask a lawyer, how much his service will cost you, he might not give you direct answer owing to the fact that giving you a straight charging might affect him in the long run. You might present him with a straightforward case in the first instance, but with the arrival of complications, what seems simple might become complex and thus he will fall on the losing side.

  • Time

The time a certain case might take will definitely be different from other cases, this can influence the cost of the lawyer. Most charge between US$200 to US$400 per hour, so you don’t judge them based on the weight of the project, instead, charges are based on the hours spent on those projects.

  • Business Structure

The structure of a business is another factor that influences what the cost of a lawyer will be. If your business is planned and structured in the best and right way, the lawyer will have little to do to drive your business to a successful end. But with a staggering setup, it will cost you more to hire a professional lawyer.

  • Level of the Lawyer

There are variations in price or the cost of the lawyer you will be using for your business due to the difference in their level.  A junior lawyer can take US$150 per hour based on the fact that he might probably have fewer jobs or he is still looking for clients.

On the other hand, a senior lawyer can take as much as US$1,000 per hour for the same project even there might be no visible difference in their services or delivery.

  • The Severity of the Project

There is a level of seriousness and severity of each case to be dealt with by a lawyer for your small business. This will influence the increment in the cost of their services, some issues that might be categorized under this include:

  • Becoming sued by an employer (Finance related, hiring and firing etc.)
  • Environmental happening involving your business.
  • Complaint by the government against your business.
  • Problem with other big business.
  • Discussion on selling of your business.
  • Determination of an exit strategy.

All this are severe cases that will take longer time and more expertise to solve, a junior lawyer might have his cost increased to between US$200US$400, while a senior lawyer might increase his from US$1,000 to US$1,500 or more.

How do Lawyers get paid for their Services?

Lawyers work mostly on two types of payment, the flat fee for a single service or you may be charged per hour of service. Each with its distinctive characteristic can actively influence what the cost for a small business lawyer might be. What does each pricing system involve? Here is a breakdown.

What are Hourly Fees Work?

How much do companies spend on legal fees? Most lawyers’ use this method to charge their clients, and most charge between US$150 and US$350 per hour based on their location, while other in some developed country offers something better. There might be a sharp difference in their charges.

This method involves paying your after every job completion for the day or accumulating the number of hours spent on several cases till the end of the month when you get paid.

What is a Flat Fee?

This is another method of payment where the estimate is done before hands. The price here might vary depending on the type of task to be done and how they will be quantified. But when a payment is talking about flat rates, it is mostly pre-arranged by both parties.

Most don’t like this method owing to the fact that it makes them spend more and you get to pay the lawyer whether he executes some project in the month or not.


It is obvious that the survival of your business is dependent on several factors that can actively help to reduce the forces of the eternal bodies trying to bring it down. It is very important to hire a skilled lawyer at the beginning of your business to help with all legal issues.

As discussed earlier, the price for a junior lawyer might be very cheap due to lack of experience or he is not conversant with the pricing process he will usually charge between US150 to US$300 per hour. On the other hand, the pricing by an experienced senior lawyer might range between US$1,000 to US$1,500.

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