One of the first things I did after I received my bar results to start my law firm was get my business licenses. Why? A couple of reasons. First, in my state, you need them to work, to open a bank account, and for anyone to take you seriously. Second, they are a good first step in the process, because they are easy to fill out, easy to get, fairly cheap, and they make you feel like you accomplished something.
The first license I filled out technically isn't a license, but it was necessary to get everything else going. It was my LLC filing. In Washington, you can do everything online, taking only about 30 minutes, max, and it costs $200.00. You get next day confirmation of the establishment of your LLC (and your name) and away you can go.
Some of you may be asking why the LLC for an individual? Isn't it kind of overkill? Right now, yes it is. But it does a couple of things that were important to me. First, the immediate thought of people that hear the name of my law firm (which is not my name) is that I am not a one man show. I think, no matter how proud you are to be a solo, that there is some truth to the thinking that people have a slightly skewed view of solo practitioners, at least until you can get them in the door. A good name gives me a little bit of credibility right off the bat, at least I feel like that (and if you don't, that's okay too!). Second, it allows me to grow, when the time is right, without a lot of pain, and with protection.
Once the LLC was established, I did step two - got a federal employment identification number. This is a really easy process, is free, and is important for when you have to pay the man at tax time. I'd highly recommend getting one when you open your law firm. I filled out the form in less than twenty minutes and immediately had confirmation and an FEIN.
License number three was a Washington Master Business License. Washington is one of those great states that doesn't have an income tax. While this is great for some, for others, like a small law firm owner, it means they get taxed to make up the difference. The Business License gives you a Washington form of the FEIN so they can track you down and make you pay taxes at tax time. While this is easy to fill out electronically, it has taken me a few days to actually get the certificate I need (banks require verification of a WMBL to open an account too). I should be getting that any day. Cost - $15.
The final license I had to get was a Seattle business license - like I said, no income taxes, so they get you coming and going (although I honestly don't know if I'll have to pay any city tax - I'm sure they will let me know). This application process was a little more involved because it must be completed and faxed in. I don't know if you necessarily need this to own a law firm in Seattle, but (and this is my only slight tangent for this post) the one thing I've learned and decided about my practice is that it is going to be done right, above the table, at all times. As the owner of a law firm you have even more responsibility as an attorney because you represent the best and brightest out there. It takes a lot of guts, ambition, and perseverance to open a successful law practice, and if you do it the wrong way it is magnified across the entire community. That's all the preaching I have in me for today.
Those are all the licenses I think I need to open up. So I'm all set with that. If you are curious about what you need, check out the Secretary of State's website (business formation), the Department of Licensing's website (if you have one), and your local city government cite. And if you can't find anything pick up the phone and call someone. Believe it or not, some person's job is to answer these exact questions. Let's put them to work!
Up next, on how to start a law firm, online legal research.
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