When you just start a law firm, you make an opening deposit into your firm’s checking account. The money you use to do that can come from several sources, but we recommend that it come straight from your personal savings. You need skin in this game, and you need to plan on not making much money for several months. Investing in yourself and your new firm will show your mettle, keep you invested—both literally and metaphorically, and show other potential funders that you’re committed to the enterprise.
We recommend several thousand dollars for that first deposit. Use your budget to get a more accurate idea of how much you’ll need to sustain you before you’re generating sufficient working capital to pay yourself a decent wage. Depending on what areas of law define your firm’s service menu, you may not be able to rely on working capital, traditional debt financing products, or client-financed litigation. That’s when you’ll need to consider litigation financing.