How Much Does a Lawyer Cost to Start a Business?

The cost to hire a lawyer when starting a business can range from $500 to over $2,000, depending on your business type, location, and the legal services required. While some lawyers charge flat fees, others use hourly billing models—with rates typically falling between $150 and $350 per hour, according to sources like Super Lawyers, Contracts Counsel, and Boost Suite.

Hiring an attorney is not always required but can be extremely beneficial, especially for complex business formations or when legal compliance is critical.

🔍 Factors That Affect the Cost of Hiring a Business Lawyer

1. Type of Business Structure

• LLC Formation tends to be less expensive than forming a C-corporation or S-corporation. The more complex the structure, the more legal work is involved—and the higher the cost.

2. Scope of Legal Services

• You may only need help filing your formation documents—or you may require:

  • Operating agreements

  • Shareholder or partnership agreements

  • Intellectual property protection (trademarks, patents)

  • Contract drafting or review

  • Licensing and regulatory compliance Each of these adds to the overall legal cost.

3. Lawyer’s Experience and Location

• Attorneys in major metro areas or with decades of experience often charge higher fees. Conversely, lawyers in smaller markets may offer more affordable rates.

4. Fee Structure

• Flat-Fee Packages: Often range from $500 to $2,000+, depending on what’s included. This is common for basic LLC or S-corp formations.

• Hourly Rates: Typically range from $150 to $350/hour, but highly experienced or specialized attorneys may charge $500/hour or more.

💼 Typical Cost Examples for Starting a Business

Legal Task	Estimated Cost
LLC Formation (basic)	$500 – $2,000
Corporation Formation (complex)	$1,125 – $5,000+
Trademark Registration	$500 – $2,000+
Contract Drafting (per contract)	$300 – $1,000
Legal Consultation (per hour)	$150 – $350+

Note: These costs may or may not include government filing fees, which vary by state.

🛠️ Alternatives to Hiring a Lawyer

1. Online Business Formation Services

• Websites like LegalZoom, Incfile, Rocket Lawyer, and ZenBusiness offer basic LLC and corporation setup starting around $100 to $300 (plus state filing fees).

• These services can handle:

  • Articles of Organization/Incorporation

  • Operating agreements

  • EIN registration

2. DIY (Do-It-Yourself)

• If you're forming a single-member LLC or a simple partnership, you might be able to file paperwork on your own through your state's Secretary of State website.

3. Limited Legal Support

• Some lawyers offer unbundled legal services, allowing you to pay for only the help you need (e.g., document review instead of full drafting).

✅ Do You Need a Lawyer to Start a Business?

• Not legally required, but strongly recommended for:

  • Businesses with multiple owners

  • Complex operating structures

  • Regulated industries

  • Intellectual property concerns

• A lawyer can prevent costly mistakes, protect your assets, and ensure compliance from the start.