Does anyone have any examples of different fee splitting arrangements for “of counsel”? I’m going out on my own, but another firm wants me to dedicate 25 hours per week on their cases, at 500 per hour. Is asking for a salary of $175k to low? Plus I would ask for 33% commission of cases I bring to the firm and don’t handle myself. The firm may or may not provide insurance, that would be negotiated.

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Posting as :
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Are you actually going solo? Yes it’s scary to take the jump, and yes a guaranteed salary sounds great.

First, you’d most likely be structured as an IC/1099 in this scenario. The other firm likely won’t want you as an employee for conflict concerns alone if you’re also hustling for clients separately as a solo. You’d have same concerns too, especially since you’d much more likely be conflicted out based on other firm’s larger practice/more attorneys.

While that rate sounds great, since you’ll likely be a 1099, consider that you’re giving up ~50% of your solo hours. I wouldn’t do that for very long, or else your solo practice won’t grow. Also the $175k as a 1099 obviously isn’t as attractive as w2. I’d suggest agreeing on a rate you charge them for the work you produce.

Separately, if you end up as a 1099, unless your practice area is very niche, I doubt the other firm wants to keep you long term in that role. Just my two cents

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F

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Happy to chat if you’d like, I serve as outside General Counsel to solo and small law firms across the US. Jeffrey.cunningham@mgclaw.com

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Considering 1300 hours @ 500/hr would be $650k.....my mathematical knowledge is the equivalent to an infant so i may be wrong on that.

You should be in the $220k ballpark if they’re billing you at $500 based on the 1/3 rule of thumb.

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