Thinking about becoming a sole practitioner but unsure where to start? Learn what it really takes to do so and build a sustainable solo practice
Before you go your own way as a sole practitioner in Canada, there are several practical and legal issues to consider. In this article, we'll discuss solo practice as a Canadian lawyer, its pros and cons, and practical tips to help you decide.
What does it mean to be a sole practitioner?
The work of a sole practitioner merges being the sole owner and lawyer with being a small‑business owner. Not only do you decide every matter for your clients, but you also handle your own finances, internal systems, and legal strategy. This includes taking care of tasks such as:
- marketing your own legal services, whether online or in person
- handling administrative details, such as bookkeeping and record-keeping
While solo practice is more challenging than working for a firm, many Canadian lawyers have chosen to be solo practitioners. There are also lawyers in small firms with fewer than 10 lawyers who are moving away from the traditional "big firm" career path.
However, all that independence still comes with a trade-off. Autonomy means no one to blame for poor choices, but also no one else to share the load when times are slow or stressful.
Altogether, being a sole practitioner means accepting both sides of the role: the freedom to shape your own practice on your terms, and the responsibility to carry the business, the files, and the risks yourself.
Watch this video for more discussions on what it means to become a solo practitioner and the steps to start your own law firm:
If you're a law student or simply curious about the legal field, check out our article on how to become a lawyer in Canada as your easy guide to become a legal professional someday.
What are the pros and cons of being a sole practitioner?
Just like any other profession, there are several pros and cons to consider before pursuing a sole practice. Advantages include:
- direct control over decision making
- keeping all profits for yourself
- flexible working hours
- closer client contact
However, sole practice also flags disadvantages such as:
- full responsibility for administration
- less predictable income and financial security
- isolation in day-to-day operations
- higher overhead expenses relative to sharing costs in a firm
We'll discuss more of these pros and cons below.
Advantage: Flexibility and independence
On the positive side, a sole practitioner controls most decisions about the practice, including working hours and how to handle the client files.
This means your workday is largely up to you. You can shape your office environment and choose the files and causes that match your values. This mix can bring back energy and enjoyment after years of feeling like just another associate in someone else's firm.
Disadvantage: Burnout for being solo
Burnout can be a chicken-and-egg issue for lawyers, especially for sole practitioners. Burnout can drive some lawyers toward solo practice, but it can also arise once they are practising on their own.
Here are some of the tips to prevent burnouts in the legal profession:
Head over to our CL Talk page, where you can find more interesting podcasts for law students, practising lawyers, or those considering law school.
What are the requirements to be a sole practitioner in Canada?
Whether you're a sole practitioner or working in one of the largest firms in Canada, your law society's rules govern your day-to-day work as a legal professional. Below are some of the rules that different law societies impose on sole practitioners.
Regulatory basics for sole practitioners
In many cases, law societies issue guidelines and organize resources for sole practitioners working within their jurisdiction. Some law societies also set specific requirements for sole practitioners. One of these law societies is the Law Society of Ontario (LSO), which has imposed a new requirement for paralegals and lawyers in the province.
LSO's Foundations of Sole Practice
LSO lawyers and paralegals who declare themselves as sole practitioners for the first time on or after January 1, 2025 must complete the Foundations of Sole Practice course. This is a 30-hour course delivered online in a modular format.
The following topics will be discussed during the course:
- client service and communication
- financial and practice management
- the business of running a law practice
- other practical advice for issues common in sole practice
This requirement came into effect in 2025, with the following compliance periods:
- must complete the course by December 31, 2026: LSO licensees who declare as sole practitioners after January 1, 2026, until May 31, 2026
- must complete the course by December 31, 2027: LSO licensees who declare as sole practitioners on June 1, 2026, or later
If you're a solo practitioner in Ontario, you should track this requirement closely, as it also counts toward your continuing professional development (CPD) hours. Also, non-compliance with this requirement will result in the administrative suspension of your licence.
Trust requirements for sole practitioners
The Law Society of Alberta (LSA) has a trust safety requirement for all lawyers and law firms in the province. It requires law firms to designate a Responsible Lawyer (RL) within the firm and to get an authorization to operate a trust account.
If you're a sole practitioner in Alberta, you must be designated as an RL to operate a trust account. You may also apply to be exempted if you do not need to operate one by submitting an Application for Exemption.
The LSA says that to be designated as an RL, you must:
- submit a form called the Application to Designate a Responsible Lawyer and Operate a Trust Account
- complete the following free online courses:
- Trust Accounting Fundamentals (Module I)
- Trust Accounting for Responsible Lawyers (Module II)
- Client Identification and Verification Rules
- submit a Start Up Report within four months of the RL approval to show compliance with the LSA's rules
What are some of the tips for sole practitioners in Canada?
Aside from the resources that may be offered by your law society, here are other tips that you can use when establishing your own solo practice:
Setting your sole practitioner fees
The fees you charge clients will depend on your business plan and budget. Your budget will also help you decide:
- how much money your practice needs to bring in
- how much to borrow to start your solo practice
Aside from the usual ins and outs, you must also consider the following items for your budget when starting your own law firm:
- law society and required insurance fees
- personal insurance (e.g. for disability)
- expenses for CPD training
- accountant's fees
- disbursements paid on behalf of clients
With a clear business plan and budget, it becomes easier to set your hourly rate, flat fees, and contingency work mix. That helps you keep the doors open and pay yourself a reasonable salary.
Marketing yourself as a sole practitioner
In a Canadian Lawyer article about the marketing best practices for solo lawyers, solo practitioners are cautioned to read and apply their law society's marketing rules. This is true, since marketing and advertising regulations may slip from your mind as a solo practitioner, especially when other things in your practice get a little too overwhelming.
Some tips when it comes to marketing yourself as a lawyer or as a sole practitioner include:
- setting up a firm website and updating social media profiles, while avoiding grey areas that could breach marketing rules
- getting an office where litigation or transactional clients can easily find you, depending on your target market
- sending out announcements among your tight network when your office opens, such as friends, family, and former colleagues
Sole practitioner: A gamble, but with a safety net
Solo practice rewards initiative, but it also demands structure, insurance, and a strong support circle. Lawyers who thrive on their own often surround themselves with mentors, advisors, accountants, and colleagues who can help fill in the gaps.
In summary, going solo does not need to mean going alone. You can still bet on yourself and protect your income with thoughtful planning. The next steps should be practical ones, guided by budgets, checklists and mentors, and rather than driven only by frustration with your current role.
Bookmark our Legal Education page for more news, articles, and updates for Canadian legal professionals, including resources for sole practitioners.
