Ok, So first off there needs to be some apologies for my lameness in not updating the site. I was in pursuit of employment, and the payoff has been somewhat interesting. For the past two weeks, I have been busy with interviewing and I have ultimately landed a position doing independent contractor work as an attorney. A precarious position considering the fact that the position means that I am essentially in business for myself. So I was wondering what the best type of post to write about the experience would be. I decided that simply free-writing about some thoughts on being in business for yourself would be best. So here goes.

Being an independent contractor, I will be forced to take care of a number of things that I wouldn’t have to deal with normally were I a normal employee. This means that I have to pay my taxes myself, as opposed to having them withdrawn from paychecks. For those of you who end up in a similar position, check out the IRS website for tips on what you need to do regarding how to pay what is called “Self Employment Tax.” I am still figuring out the process, and I am going to talk with a tax/accountant friend to see what needs to be taken care of on my end.

Aside from the tax thing, I also am taking copious records in all things I do for tax purposes. All my food, travel and business expenses are being carefully logged and all receipts are being saved. To make things easier, I might eventually purchase one of those small scanners that quickly scan smaller documents (receipt sized papers). That would just make things easier in the long run, and also help make filing my taxes for next year much easier (hopefully).

One thing (among the many) that is new is the issue of malpractice insurance. I’m in the process of getting quotes through a broker on what type of costs I’ll be looking at. Just messing around online, I’ve seen that the price can range from around $7,000/year. Where, pray tell, will I find $7,000 to pay for insurance? I won’t make that in two months of full employment (well, it’s possible but will be difficult) and the income from this position is potentially unsteady. But it’s a job so that’s what I took it. With so many small and solo practices in California (and law in general), how do they cover the issue of malpractice? Well, the short of it is that they DON’T. Now, from what I have been able to dig up, about 20% of lawyers in California practice law without any type of legal malpractice insurance. Can’t get what you can’t afford right? Like so many other things, insurance has a strangle hold on the legal industry as well. American culture banks on things going wrong it seems, and thus the need to be properly insured against “potential” happenings is a necessity. It is a multi-billion dollar a year industry, and some insurance makes more sense than other types. Legal malpractice insurance seems like a good idea just to CYA. But as most people will say, “I don’t plan on fucking up.” Until you fuck up. I am still figuring out what I’m going to do, and I think the best thing would be to get some form in the lowest amount possible. The equivalent of simple liability insurance for your car. That’s what I want for law.

The thing that I am now coming to realize about the legal industry is that it is a bit of a joke. You drop thousands of dollars for three to four years of legal education, only to begin the lifelong process of handing your money over to the bar association each year in dues, plus the cost of MCLE credits. This doesn’t jive with those graduates (including myself) who have hit the wall of a longer period of unemployment, and have been forced to dip into whatever savings they might have had left after law school. Where do we get the money to handle all the practicalities of being in the legal industry? More importantly, where was the advice from school on how much practicing can cost a person? It would have been nice to have been presented with some idea of the costs of being a lawyer while in law school. That might have made a small difference for some. But of course, hindsight is 20/20. For now, I’m off to handle my ABC’s. Always Be Closing. Peace to all the legal lemmings, stay strong.