Business Operations, Client Contracts, and Recordkeeping
Engagement fundamentals
Every engagement starts with a written agreement: scope of work, deliverables, fee structure, retainer, expense policy, termination terms, confidentiality, and the client's confirmation of lawful purpose. Hourly and flat-fee arrangements are standard; contingency arrangements tied to recovery are restricted or prohibited in many contexts, particularly domestic and criminal matters. Run a conflict check before signature.
Operations
Carry the insurance your jurisdiction and clients require - errors and omissions, general liability, and any statutory surety bond. Distinguish employees from independent contractors using the applicable test, and confirm subcontractors hold their own licenses. Trust or client funds must be segregated from operating accounts and reconciled. Data security matters: encrypted storage, access controls, and a written retention and destruction schedule.
Records
Keep client files, contract records, invoices, and custody logs for the period required by statute, contract, and insurer - commonly several years, and longer if litigation is anticipated. Produce records on subpoena; do not destroy them once a hold is in place.
Traps
- Starting work on a handshake and discovering the scope dispute later.
- Commingling client retainer funds with operating cash.
- Taking a contingency fee in a matter where it is prohibited.
- Treating a subcontractor as covered by your license.
Rule of thumb
No engagement without a signed scope, fee terms, lawful-purpose acknowledgment, and a completed conflict check. If a client resists putting terms in writing, that is itself information about the client.