Author Question: What are billable and nonbillable hours? Why do law firms seek to maximize their billable hours? ... (Read 39 times)

Engineer · **on:** Aug 3, 2018

What are billable and nonbillable hours? Why do law firms seek to maximize their billable hours?

Ans?

Question 2

What is a sole proprietorship? For a paralegal, what are some of the benefits of working for a sole proprietor (a sole practitioner)?

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mmpiza · **Reply #1 on:** Aug 3, 2018

Answer to Question 1

Billable hours are the hours or fractions of hours that attorneys and paralegals spend in client-related work that requires legal expertise and that can be billed directly to clients. For example, a paralegal's time spent researching or investigating a client's claim is billable time. So is the time spent conferring with or about a client, drafting documents on behalf of a client, interviewing clients or witnesses, and traveling on a client's behalf (to and from the courthouse to file documents, for example). Time spent on other tasks, such as administrative work, staff meetings, or performance reviews, is nonbillable time. For example, suppose that a paralegal spends 30 minutes photocopying forms for the forms file, time sheets, or a procedures manual for the office. Those 30 minutes are not considered billable time.
Generally, law firms have a legitimate reason for wanting to maximize their billable hours: The financial well-being of a law firm depends to a great extent on how many billable hours are generated by its employees. Nonbillable time ultimately cuts into the firm's profits. Therefore, the more billable hours generated by the firm's legal professionals, the more profitable the business will be.

Answer to Question 2

In a sole proprietorship, one individualthe sole proprietorowns the business. The sole proprietor is entitled to any profits made by the firm but is also personally liable for all of the firm's debts or obligations. An attorney who practices law as a sole proprietor is often called a sole (solo) practitioner.
Working for a sole practitioner is a good way for a paralegal to learn about law office procedures because the paralegal will typically perform a wide variety of tasks. Many sole practitioners hire one person to act as secretary, paralegal, administrator, and manager. Paralegals holding this kind of position would probably handle many tasks: receiving and date-stamping the mail, organizing and maintaining the filing system, interviewing clients and witnesses, bookkeeping (receiving payments from clients, preparing and sending bills to clients, and the like), conducting investigations and legal research, drafting legal documents, assisting the attorney in trial preparation and perhaps in the courtroom, and other jobs, including office administration. Working for a sole practitioner is a good way to find out which area of law you most enjoy because you will learn about procedures relating to many different areas. Alternatively, if you work for a sole practitioner who specializes in one area of law, you will have an opportunity to develop expertise in that area. In sum, working in a small law firm gives you an overview of law office procedures and legal practice that will help you throughout your career.