Plenty of solicitors think about going it alone. Perhaps you want to choose your own clients, set your own fees, work more flexibly or build something that carries your name. For many, it is also a chance to deliver the kind of service they always felt clients deserved.
Setting up a law firm is more involved than starting most small businesses. You are entering a regulated market, so before you take on a single client you need to decide how you will practise, secure the right insurance, satisfy the Solicitors Regulation Authority (SRA) and put proper systems in place for client money, money laundering checks and complaints. Then you need clients, and fewer of them arrive by word of mouth alone than they once did.
This guide sets out the main steps for solicitors in England and Wales, from choosing a structure to building a steady flow of local enquiries. It is general information only. Rules change, and the SRA has been consulting on several areas recently, so always check the SRA’s current guidance and take specialist advice on your own situation.
Key points
- Decide first whether you need an SRA-authorised firm or whether the freelance solicitor route fits the work you want to do.
- Authorised firms need compliance officers (a COLP and a COFA), qualifying indemnity insurance on the SRA minimum terms, and suitable checks on owners and managers.
- Plan how you will handle client money, either through a client account under the SRA Accounts Rules or by avoiding holding it, for example with a third-party managed account.
- SRA-regulated firms must publish price and service information for certain services, show the SRA digital badge and explain their complaints procedure on their website.
- Clients now find solicitors through Google Maps, reviews and AI assistants, so a clear, accurate online presence matters from launch.
In this guide
- Is running your own firm right for you?
- Choosing your structure
- Getting authorised by the SRA
- Compliance officers, insurance and client money
- Anti-money laundering
- Transparency rules and your website
- Premises, systems and finances
- Winning work: referrals and reputation
- Local SEO: how clients find a solicitor nearby
- When clients ask an AI assistant to recommend a solicitor
- Frequently asked questions
- Final thoughts
Is running your own firm right for you?
Running a firm means you are responsible for far more than the files on your desk. You become accountable for regulatory compliance, insurance, cash flow, supervision, IT, data protection and the experience every client has, even when you are not doing the work yourself.
Before you commit, think honestly about:
- Your practice areas. Will you do one type of work well, or offer several? A focused firm is easier to run and market, but more exposed if that market slows.
- Your client sources. Where will the first months of work come from? Existing client relationships, referrers and local reputation make a big difference to early cash flow.
- Supervision. If you plan to take on junior staff, you need the time and experience to supervise them properly.
- Your finances. Insurance premiums, systems and set-up costs come before income, and fees on many matters arrive only at completion.
- Your appetite for management. Some solicitors find they enjoy running a business. Others find it takes them away from the legal work they love.
If you mainly want independence and flexibility without the full weight of firm management, the freelance route described below may suit you better.
Choosing your structure
The SRA authorises several types of firm, and there is also an option to practise as a freelance solicitor without firm authorisation, subject to strict conditions.
| Structure | What it is | Main points to consider |
|---|---|---|
| Recognised sole practice | You practise on your own account as an authorised firm | Simple ownership, but you carry all the responsibility personally |
| Recognised body (partnership, LLP or company) | A firm owned and managed by lawyers | Shared responsibility; LLPs and companies offer limited liability |
| Licensed body (ABS) | A firm with non-lawyer owners or managers | More flexibility on investment, with a more detailed application |
| Freelance solicitor | Self-employed, practising in your own name without firm authorisation | Strict conditions on staff, client money and how you are engaged |
Under the SRA’s freelance solicitor conditions, if you carry on reserved legal activities you need at least three years of practice since admission, must practise in your own name rather than through a trading name or company, cannot employ others to provide your legal services, and can only hold limited client money, such as payments on account of costs and disbursements. You also need adequate and appropriate indemnity insurance and must tell clients if you are not covered by the SRA’s minimum terms.
If you provide reserved legal activities, such as conveyancing or probate, through a business, that business generally needs SRA authorisation unless you meet the freelance conditions. Check this carefully against the SRA’s rules before you decide.
Getting authorised by the SRA
If you are setting up an authorised firm, you must apply to the SRA and receive authorisation before you start trading. The SRA’s page on applying for authorisation of a new firm sets out the current process and fees.
In broad terms, you will need:
- A current practising certificate for each solicitor involved, and details of every owner and manager.
- A professional indemnity insurance quote or certificate from a participating insurer, in the firm’s exact name.
- Details of your firm’s structure, and incorporation details if it is an LLP or company.
- Information about each role holder’s experience, regulatory history and suitability.
- Basic DBS checks for owners, officers and managers who need approval under the money laundering rules.
- For more complex or higher-risk firms, supporting documents such as a business plan, financial forecasts and a business continuity plan.
The SRA says it aims to decide within 90 days where possible, but that a decision could take up to 180 days, especially if it needs more information. Answer queries promptly, because an application can be treated as withdrawn if you miss a deadline. Build several months into your launch plan.
Even where the SRA does not ask for a business plan, write one anyway. It forces you to think through funding, pricing, workflow and the risks to the firm, and lenders and insurers will often want to see it.
Tip
Prepare your business continuity arrangements early. The SRA and insurers both look at what would happen to clients’ matters if you were ill or unable to work, and it is a common concern for small firms.
Compliance officers, insurance and client money
COLP and COFA
Every authorised firm needs a Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA). In a small firm, these are often the founding solicitor or partners. The COLP is responsible for systems that help the firm comply with its regulatory obligations, and the COFA for compliance with the SRA Accounts Rules. Both must record and report serious breaches.
The SRA has made changes to compliance officer roles and accountants’ reports, approved by the Legal Services Board in 2026 and being phased in from early 2027, with smaller firms given longer to comply. Under the new rules, in firms with turnover above £600,000 or client money balances above £2 million, an owner or manager who can make significant management decisions alone could not also be the COLP or COFA (sole owner-managers caught only by the client money threshold would be barred from the COFA role only), and all non-exempt firms would have to submit their accountants’ reports to the SRA. Check the SRA’s latest position before you finalise your structure.
PII under the SRA’s minimum terms
Authorised firms must hold qualifying insurance on the SRA’s minimum terms and conditions. The minimum cover depends on firm type, at either £2 million or £3 million per claim, and policies must include run-off cover for claims made after a firm closes. Premiums for new firms vary widely depending on practice areas, experience and claims history, so speak to a specialist broker early. Conveyancing usually attracts higher premiums because of the sums involved and the risk of fraud.
Client money
If your firm holds client money, you need a client account and must follow the SRA Accounts Rules, including regular reconciliations and an annual accountant’s report unless an exemption applies. You will also make contributions to the SRA Compensation Fund.
Some new firms choose not to hold client money at all, at least at the start. A third-party managed account, where a regulated payment provider holds funds and releases them on agreed instructions, can be an alternative for some types of work. Others use a client account but keep it tightly controlled. Whatever you choose, your COFA needs to understand it fully.
Anti-money laundering
Many legal services fall within the Money Laundering Regulations, including conveyancing, trust and company work, and handling client funds for certain transactions. For firms within scope, the SRA is the anti-money laundering supervisor.
You will need:
- A firm-wide risk assessment that reflects the work you do and the clients you act for.
- Written policies, controls and procedures for client due diligence and ongoing monitoring.
- A money laundering reporting officer and, where required, a compliance officer for the regulations.
- Training for anyone involved in in-scope work.
- Approval of beneficial owners, officers and managers, which involves the DBS checks mentioned above.
Electronic identity verification tools help, but they do not replace judgement. Source of funds and source of wealth checks on property purchases are where many firms fall short.
Transparency rules and your website
The SRA Transparency Rules affect what you must publish, and they apply from the day you launch. Under the SRA Transparency Rules, firms that publicly offer certain services must publish cost and service information for them. The list includes:
- Residential conveyancing (sales, purchases, mortgages and remortgages).
- Uncontested probate and estate administration.
- Immigration applications (excluding asylum) and related tribunal appeals.
- Summary-only road traffic offences dealt with at a single hearing.
- Employment tribunal claims for unfair or wrongful dismissal, for employees and employers.
- Debt recovery up to £100,000 and business premises licensing applications.
For these services you must show the total cost or a range, the basis of your charges, likely disbursements, VAT, what is included and excluded, typical timescales and the experience of the people doing the work. All firms must also publish their complaints procedure, including how to complain to the Legal Ombudsman. Authorised firms must display their SRA number and the SRA digital badge prominently on the website, and include their authorisation number and regulatory status on letterhead and emails.
Treat this as an opportunity rather than a chore. Clear, honest fee pages are some of the most useful content on a law firm website, both for clients comparing firms and for search engines.
Premises, systems and finances
You do not need an expensive office to start. Some new firms begin in serviced offices, shared space or a mix of home working and meeting rooms. If you plan to see clients in person, a professional, accessible place to meet matters, and a visible local office can help with walk-in work such as wills.
Your core systems will usually include:
- Practice and case management software with time recording and matter management.
- Legal accounting software that supports the SRA Accounts Rules.
- Secure email, document storage and backups.
- Cyber security measures, including multi-factor authentication and procedures to verify bank details, because payment diversion fraud is a serious risk.
- Data protection policies, including registration with the Information Commissioner’s Office where required.
Work with an accountant who understands law firms to forecast cash flow carefully. Conveyancing and probate fees often arrive only at completion, so you may need working capital to cover several months of costs.
Winning work: referrals and reputation
In the early months, relationships often bring the most work. Estate agents, mortgage brokers, financial advisers, accountants and local charities are all asked to recommend solicitors.
Some practical approaches:
- Arrange informal meetings with local professionals and explain clearly what you do and how you work.
- Offer to speak at local groups on topics such as wills, lasting powers of attorney or buying a first home.
- Keep in touch with past clients through a short, useful newsletter.
- Make it easy for clients to leave a review once a matter is complete.
Referral arrangements are regulated. You must be transparent with clients about them and protect your independence, and referral fees are banned in some areas such as personal injury. Check the SRA Standards and Regulations before agreeing any arrangement.
Local SEO: how clients find a solicitor nearby
Most people only need a solicitor occasionally, so many do not have one in mind. When the need arises, they search. Typical searches include “solicitors near me”, “conveyancing solicitor in [town]”, “will writing solicitor near me”, “probate solicitor”, “divorce solicitor near me” and “employment solicitor for unfair dismissal”.
Local SEO helps your firm appear in the map results and local listings for those searches. For a law firm, the essentials are:
- Google Business Profile. Choose an accurate primary category, such as law firm or solicitor, list your practice areas as services, and add opening hours, accessibility details and photos of your office and team. Set one up for each office that genuinely meets clients.
- Reviews. Ask your clients for a review once their matter is complete. Reply professionally to every review without revealing anything confidential, including whether the reviewer was a client. Never write, buy or incentivise reviews, as fake and concealed incentivised reviews are now specifically prohibited under consumer law.
- Consistent details. Keep your firm name, address and phone number identical across your website, Google, Apple Maps, Bing, legal directories and the Law Society’s Find a Solicitor listing.
- Practice-area pages. Create a page for each area of law, explaining in plain English what is involved, typical timescales, fees where relevant and who will handle the matter.
- Local links and mentions. Talks, sponsorship, local press comment on legal changes and listings on reputable local business sites all build authority in your area.
Many new firms set this up themselves, while others prefer to hand it to people who do it every day, such as a specialist provider of local SEO for solicitors and law firms. Either way, expect it to build over three to six months, and keep content accurate as rules and fees change.
When clients ask an AI assistant to recommend a solicitor
A growing number of people now ask AI assistants for help finding a solicitor. ChatGPT, Gemini, Perplexity, Microsoft Copilot and Google’s AI Overviews are all being asked questions such as:
- “Can you recommend a local solicitor for buying a house?”
- “Which solicitors near [town] do fixed-fee probate?”
- “How much does conveyancing usually cost in [area], and who is well reviewed?”
- “I’ve been dismissed from my job. Is there an employment solicitor nearby who can help?”
An assistant suggesting a solicitor pieces its answer together from facts it can verify in several places online. Answer engine optimisation (AEO) is the work of making your firm’s facts plain and identical wherever they appear. For a law firm, that means:
- Consistent firm information across your website, Google profile, legal directories and the SRA register.
- Clear practice-area descriptions that state plainly what you do, for whom and where.
- Published fees and processes, which you will already need for the services covered by the Transparency Rules.
- FAQs that reflect real questions, such as how long a sale takes, what happens at a first family law meeting, or whether you offer home visits for wills.
- Reviews that describe the service, mentioning things like responsiveness and clear explanations.
- Mentions on reputable sites, including local news, professional bodies and established legal directories.
Accuracy matters more for solicitors than for most businesses. AI tools may repeat what they find, so out-of-date fee information or vague service descriptions can mislead clients. Reviewing your content regularly protects both your clients and your firm.
Tip
Write your FAQs in the words clients actually use. “How long does it take to buy a house?” is far more useful than a heading such as “Conveyancing timescales”.
Frequently asked questions
Do I need a set amount of experience to start my own firm?
For the freelance solicitor route, you need at least three years of practice since admission if you will carry on reserved legal activities. For an authorised firm, the SRA assesses the experience and suitability of the people running it as part of the application, so be ready to show you can manage the firm and supervise any staff safely.
How long does SRA authorisation take?
The SRA aims to decide applications within a set timescale, but some take longer, particularly if more information is needed or the structure is complex. Allow several months and answer any queries promptly.
Do I have to hold client money?
No. Some firms avoid holding client money altogether, for example by using a third-party managed account or by structuring their work so that money is not held. If you do hold it, you must follow the SRA Accounts Rules and normally obtain an annual accountant’s report.
Which services require published prices?
The SRA Transparency Rules list specific services, including residential conveyancing, uncontested probate, certain immigration matters, some road traffic offences, employment tribunal dismissal claims, debt recovery up to £100,000 and business premises licensing. If you publicly offer any of these, you need to publish cost and service information.
Can a new firm compete online with national conveyancers?
Yes, in many cases. Local search tends to favour genuinely local firms with strong reviews and complete profiles, and many clients prefer a named solicitor they can speak to. Make that advantage obvious on your website and Google profile.
Final thoughts
Starting a law firm takes careful preparation, but each step is manageable once you break it down. Choose the right structure, apply for authorisation early, secure suitable indemnity cover, decide how you will handle client money, and put your anti-money laundering and complaints procedures in place before you open.
Then make sure clients can find and trust you. Clear practice-area pages, published fees, a complete Google profile, consistent listings and genuine reviews help you appear when people search locally or ask an AI assistant for a recommendation. Get those foundations right, keep them accurate, and the firm has a solid base to grow from.
