Billing Practices
The billing practices of our firm follow the pattern of most business law firms. Ours is not a "budget" firm, nor is it an unduly expensive one. Rates are in the moderate range and are affordable for the clients we serve.
Our billing practices can be summed up as follows:
- Free initial phone or email consultation for any potential client of our law firm
- Reduced-rate initial consultation via meeting (any client)
- Hourly-based billing (any client)
- Flat-fee billing (select services)
- Monthly retainer billing (any client)
Click here for an explanation of how we handle initial consultations. During your free initial consultation via email or telephone, we can determine which type of fee structure is best suited to your situation and provide an estimate of your legal costs.
Hourly-based billing
We bill hourly for most legal services. Rates will vary depending on which attorney is performing the services.
Time is billed in six-minute minimum billing increments as opposed to the quarter-hour minimums often used at larger firms.
Hourly rate services usually require a retainer fee prior to the commencement of legal work. Hourly rates are occasionally negotiable, though our fees already represent a discount in comparison to larger law firms offering comparable services. Rates are subject to change without notice to non-clients.
Flat-fee billing
We may potentially enter into a flat-fee billing arrangement for any specific matter with a client, but most matters do not lend themselves to such arrangements because of the unpredictability of the time involved.
Basic incorporations do lend themselves to flat-fee billing and we bill these at $1,500 plus costs ($1,000 if there is only one shareholder), whether S Corp or C Corp. The flat fee is for a turn-key package including preparation of all documentation (minutes, bylaws, etc.), filing of all related tax and other forms needed to set up a basic corporation in California or in Delaware, and meeting time as reasonably needed to advise the client on the range of issues relating to the proper set-up of such corporations (the latter being the major reason for small business clients to use a skilled business lawyer as opposed to online services that leave you in the dark about the critical decision-making process - don't be short-sighted in this vital area affecting your business). Collateral matters at the time of incorporation (lease reviews, etc.) are billed hourly.
Similarly, the organization of a basic LLC is billed at $1,500 plus costs ($1,000 if there is only one member).
A simple dissolution of a California corporation or LLC in good standing, not owing back taxes, and not having unpaid creditors is billed at a fixed fee of $750 plus costs (those that are not simple are billed hourly, and this is a matter that is discussed and agreed to up front).
It is always possible to use flat legal fees for other matters, and our law firm is always willing to discuss such arrangements with clients, but the setting of such fees will necessarily reflect the business factors that bear on the arrangement and will not normally consist of a mere estimate of hourly fees. In such cases, the flat fee must be set high enough to compensate for the fact that there may be unforeseen circumstances that will take additional time and to compensate for the additional risk the attorney is taking on. In cases where such a fee arrangement makes sense, of course, clients do obtain predictability for their budgeting purposes.
Unless otherwise agreed, payment for flat fee legal services is due in advance.
Deferred-fee billing (business startup clients only)
Larger law firms use deferred-billing arrangements with business startup clients, but often tie such arrangements to near-term VC funding. This tends to put the client into a one-size-fits-all category where the pressure to obtain short-term VC funding is great.
Our firm at times offers deferred-fee arrangements to startup clients, typically structured as a fee deferral up to a specified dollar limit and for a specified time in exchange for a small equity interest in the startup company. Apart from not having the pressure on the client to obtain near-term VC funding, we typically structure these along the lines conventionally used by larger firms.
This type of arrangement depends on the firm's assessment of the prospects of the startup as well as other factors.
Note that the corporate setup for a typical business startup client is significantly more complex than for a basic incorporation or LLC setup and is therefore billed hourly in most cases.
Monthly retainer billing
We offer monthly retainer billing arrangements by which we handle all the routine legal work of a client during any covered month in exchange for payment in advance of a flat-fee for that month. This enables a client to budget its legal expenses more predictably. For this purpose, "routine" does not include complex contracts or IP matters, funding rounds, acquisitions, lawsuits, or other matters requiring time-intensive services. It does cover phone calls, email exchanges, and meetings to obtain legal advice as issues arise in a business, facilitation of periodic board of director meetings, review and preparation of simple contracts, and the like. The arrangement is flexible and can be terminated or modified at any time if either the attorney or the client believes that the way it is working out is unfair to that party.
Monthly retainer arrangements are best suited to longer-term relationships between the firm and its clients but can be used in other situations if it makes sense for both attorney and client.
Forms of Payment
All payments in U.S. dollars. We accept payment by cash, check, Visa, MasterCard, Discover, American Express.
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