
How much does a small business lawyer cost?
How much does a small business lawyer cost?
$150 – $500 average cost per hour
$250 – $2,000+ cost per service

Small business lawyer cost
Small business attorney fees average $150 to $500 per hour but can reach $1,000+ per hour in major cities, depending on the lawyer's experience and reputation. Flat fees range from $250 to $2,000+ per service. Lawyer fees for small businesses vary widely due to the differing legal needs of each industry.
Small business attorneys use various fee structures, each with distinct advantages depending on your needs.
Fee structure | Average cost |
---|---|
Hourly rate | $150 – $500 per hour |
Flat service fee | $250 – $2,000+ per project |
Monthly package | $500 – $5000 per month |
Online subscription | $30 – $150 per month |
Retainer | $2,000 – $5,000 |
Hourly rate
Hourly billing is the most common fee structure for small business lawyers. Most attorneys charge $150 to $500 per hour, but fees can reach $1,000 or more in larger cities or for highly experienced attorneys. The total cost depends on how much time your legal issue requires.
Hourly billing works well for complex matters where the scope is uncertain. You'll receive detailed invoices showing time spent on research, document preparation, and client communication.
Flat fee
Lawyers often charge a flat fee for straightforward tasks like forming an LLC, drafting a basic contract, or registering a trademark. Fees range from $250 to $2,000+, depending on the task and your location. Flat fees provide cost certainty, but make sure you understand what is and isn't included.
The table below details some common small business attorney services often charged at a flat rate:
Service | Average service fee |
---|---|
Business formation | $500 – $1,500 (simple) $3,500 – $10,000 (complex) |
Drafting contracts (NDAs, employment contracts, etc.) | $350 – $1,500 per contract |
Contract review | $250 – $500 |
Trademark cost | $750 – $2,400 per class |
Copyright cost | $250 – $500+ |
Patent cost | $5,000 – $10,000+ |
Monthly package
Some lawyers offer monthly packages for businesses needing ongoing legal support. Fees range anywhere from $500 to $5,000 per month, depending on the level of service and the size of your business. Many lawyers also offer reduced rates on any services not covered by the monthly fee, offering value for businesses requiring consistent legal attention.
Monthly arrangements are beneficial for growing companies dealing with employment issues, contract reviews, and compliance matters. Your lawyer becomes familiar with your business, providing more efficient service over time.
Online subscription
Online legal subscription services offer affordable access to basic legal documents and limited attorney consultations. These platforms charge $30-$150 per month for template access, document creation tools, and brief attorney reviews.
While cost-effective for simple needs, online subscriptions have limitations. They provide standardized documents that may not address your specific circumstances. Complex legal issues still require traditional attorney representation.
Retainer fee
Small business lawyer retainer fees range from $2,000 to $5,000 to secure ongoing legal services with an upfront payment. The lawyer deducts hourly charges from the retainer balance. Once depleted, you must replenish to continue service.
While sometimes called a "monthly retainer", this arrangement is different from a monthly package that outlines a specific number of services or hours for an associated fee.
Contingency fee
Contingency fees are rare for most small business matters, but lawyers may use them in specific cases, like certain lawsuits or collections. In a contingency arrangement, the lawyer only gets paid if you win or settle the case, taking 25% to 40% of the recovered amount.
What does a business lawyer do?
Business lawyers provide comprehensive legal support throughout your company's lifecycle. They handle everything from startup formation to complex transactions and dispute resolution.
Business stages
Every phase of your business comes with unique legal requirements and costs. The table below offers a quick overview of how legal needs evolve as your business grows and changes.
Business stage | Average cost | Common legal needs |
---|---|---|
Startup phase | $2,000 – $10,000 |
|
Growth phase | $500 – $3,000 per month |
|
Maturity phase | $5,000 – $50,000+ per year |
|
Exit phase | $25,000- $200,000+ |
|
Industry-specific needs
Certain industries face unique regulatory requirements that affect the amount of legal assistance needed. For example:
Restaurants need health and safety compliance.
Tech companies must address data privacy and IP protection.
Healthcare businesses face strict regulatory oversight.
Manufacturing businesses need product liability protection and environmental compliance.
Professional services have licensing and malpractice considerations.
Financial services require specialized compliance with banking regulations, data protection laws, and consumer protection standards.
A small business lawyer familiar with your industry can help you navigate these special challenges.
What factors impact small business attorney fees?
Besides the business phase and industry, several other variables influence the cost of a lawyer for a small business:
Business type: Complex corporations cost more than simple LLCs. Multiple owners, investors, or complex ownership structures increase the legal work requirements.
Frequency of service: If you need a lawyer for occasional questions, you'll likely pay by the hour or per project. If you need ongoing support, a monthly retainer, package, or subscription may be more cost-effective. Regular clients often receive discounted rates.
Complexity of service or case: Routine document preparation costs less than complex matters like litigation or regulatory compliance. The more time and expertise required, the higher the fee.
Location: Lawyer fees vary greatly by region. Attorneys in large cities like New York or San Francisco charge much more than average, with some rates reaching $1,000+ per hour.
Lawyer's experience: Senior partners charge premium rates for their expertise and reputation. Junior associates charge less and may be all you need for routine business matters.
Firm size: Large law firms often charge more due to their resources and reputation. Solo practitioners or small firms may offer lower rates but might not have the same breadth of services.
Monthly packages: Subscription arrangements tend to offer better hourly value than project-based billing.
Do I need a lawyer for my small business?
Many small business owners wonder if they really need a lawyer. While some tasks can be handled independently, legal mistakes can be costly. Consider hiring a small business lawyer if you:
Are forming a new business or changing your business structure
Need to draft, review, or negotiate contracts
Are facing a lawsuit or legal dispute
Need to protect intellectual property
Are hiring or firing employees
Are raising capital or bringing in investors
Need to comply with industry-specific regulations
For simple tasks, like applying for an EIN or writing a basic business plan, you may not need legal help. But for anything with long-term implications or legal risk, it's wise to consult a professional.

Guidelines for choosing a small business lawyer
Choosing the right lawyer can make a big difference for your business. Follow these tips to help you find the best fit:
Look for lawyers who have experience with businesses similar to yours.
Look for consistently positive reviews and testimonials on Lawful and Google.
Research local bar associations for lawyer directories.
Schedule consultations with a few attorneys to compare
Ask about their familiarity with your industry.
Check their credentials and reputation.
Consider their communication style and responsiveness.
Compare fee structures and get estimates in writing.
Avoid choosing a lawyer based solely on price.
Questions to ask a small business attorney
Ask these important questions before hiring a lawyer for your small business:
What is your experience with businesses like mine?
How do you structure your fees?
What services do you include in your fee?
How do you communicate with clients?
Will you be handling my case, or someone else at your firm?
Can you provide references from other business clients?
What potential challenges do you see with my situation?