Starting a New Law Firm: Year One Technology Budget

We frequently speak to attorneys who are interested in starting their own firm, but are unsure of how much it will cost from a technology perspective. This article is a brief breakdown of what a firm of 2 to 10 people (attorneys/staff) can expect to spend year one in business.

This article is light on recommendations and is focused on the typical needs and expenses of a new firm. If you’re looking for specific guidance, contact us today!

One-time Startup costs

  • Server (optional) with 2tb of storage: A typical practice group of <10 will have less than 1tb of existing/closed case data that moves with them to a new firm. The server is plenty expandable as the firm grows. Ideally a new firm starts in the cloud, and with cloud native applications, but some firms may want to keep a server due to legacy eDiscovery or similar apps, familiarity, or other reasons.

    • Purchased hardware in an office: $5000

    • Hosted/cloud based dedicated server (ex: Microsoft Azure): $700/month

    • Labor: $5000 to configure the servers and setup access for the firm’s users

  • New 365 tenant setup: although you can purchase 365 and get it running with a few clicks, fully configuring the functionality and security takes significantly more work.

    • $2500 - 5000

    • Did you know? CGP includes 365 setup and configuration for new firms that sign a monthly service and security agreement.

  • Cyberinsurance is critical for today’s law firm due to the reliance on a functioning network, and the critical data the firm holds. Cyberinsurance not only helps with recovery costs in the event of an attack, but also can replace lost income or stolen funds.

    • Annual cost of $2000 - $5000

monthly Recurring costs

  • 365 Licensing: Each working user will require a dedicated license, there is not a practical way to share licenses. The license includes email, Office applications, 1tb of OneDrive storage, and many other features. Keep in mind Microsoft does not include backups with 365, and a third party service should be used.

    • 365 Business Premium: $26.50/user/month

    • 365 Backups: $6/user/month

  • Practice management and accounting: there are a wide variety of costs and options available. Often these systems are picked solely off the firm’s familiarity and experiences with software they have previously used.

    • $20-100/user/month

  • Office internet: the availability of service varies, but for most <10 person firms, a cable (also called coax or wideband) internet circuit is plenty.

    • $100 - $500/month

  • IT Support: your firm needs to focus on practicing law, not fixing computers. Having an IT service provider means your firm can work instead of fixing printers, or worst yet, paying hourly and having to weigh their time against tech needs.

    • Unlimited IT support (with no cybersecurity): $150/user/month

    • Cybersecurity (24x7 fully managed, full suite of protection: $100+/user or computer/month

  • Copier leases: although every firm aspires to be paperless, it rarely happens. A high powered copier is usually purchased on a lease, which ranges from $250 - 1000/month depending on speed (both printing and scanning) and features (staple, bind, etc.)

  • Internet: the types of internet connections available varies drastically, even depending on what part of a city you are in. This drives cost and speed. Most small firms in Texas are either on a cable (also called coaxial/coax, or wideband) connection which costs $100 - 300/month, or fiber for $300 - 1000/month.


Looking to start your own firm? Learn more here.

Starting a New Law FirmDustin Bolander