Typically, a startup lawyer bills either an hourly rate or a flat rate based on the task needed for a startup.
Hourly Rate
Prices for startup lawyers vary with the hourly rate ranging from $150 dollars per hour to sometimes upwards of $600 dollars per hour. According to Upcounsel's 2016 Los Angeles Business Law report (which surveyed 15,000 lawyers in California), the average hourly rate for an attorney in LA is around $302 - $410 with an average of 23.08 years of experience.
In this situation with hourly rates, the startup lawyer will send you an itemized bill each month reflecting the number of hours he or she has worked on your matter and the expenses incurred. This type of fee arrangement will also likely be coupled with a retainer, or an advance fee to secure the attorney’s services.
Flat Rate Fee
For a flat rate fee, the lawyer will give you an upfront cost of the project — and that will basically be it, unless if something unforeseen comes up.
Things to Keep in Mind
If you are just starting out in your company, you're probably not going to want to hire a lawyer from a bigger firm because they tend to bill by the hour. It's better to do your research to find a local startup lawyer who will give you personalized attention to your needs.
Other factors that determine how much a business lawyer costs depend on the experience of the lawyer, where they're located, and what area they're practicing.
While it's important to be responsible in how you allocate your funding, you can't go wrong with paying outside experts to do things that you can't do yourself. This is especially true when it comes to attorneys and developers.
Paying a startup lawyer to re-negotiate a bad deal or review contracts after the fact will end up being much more costly in both fees and lost profits than just hiring someone in the beginning to write up proper contracts.
But at the end, you want to find a startup lawyer who is not necessarily cost-effective but someone who is professional and charges a reasonable rate.
For more information about hiring a startup lawyer, visit us at MollaeiLaw.com.
Sam Mollaei, Esq., startup lawyer, can be reached at (818) 925-0002 or via email at [email protected].
