"How much will this cost?" is the first question most founders want to ask a securities lawyer and the last one many lawyers want to answer. Here is a straight answer.
How Hourly Billing Works
Most securities lawyers bill by the hour, in six-minute (0.1 hour) increments. Rates for experienced securities counsel commonly run several hundred dollars an hour, and higher at large firms. At $450 an hour, a one-minute phone call is billed as six minutes: $45. A short email exchange, a quick look at a press release, a two-line answer to "do we need to file something?" — each one is a line item.
The problem is not the rate. It is the behavior hourly billing creates. Clients learn to stop calling. The questions they stop asking are the ones that prevent securities problems.
What Drives the Cost of Securities Work
- ›Ongoing advice — questions, press release review, board consents, compliance. Small items, frequently.
- ›Periodic filings — 10-Ks, 10-Qs, 8-Ks, Section 16 reports for reporting companies.
- ›Offering documents — a private placement memorandum, a Regulation A offering circular, or an S-1 registration statement. Large, defined projects.
- ›Problems — fixing things that went wrong. Always the most expensive category.
How a Flat-Fee Arrangement Works
In my practice, clients pay a predictable monthly fee for unlimited legal services. There is no hourly billing, no surprise invoice, and no charge for a consultation — even a one-minute call. Clients reach me directly, 24/7, without scheduling an appointment.
Larger document projects, such as registration statements and private placement memoranda, are outside the monthly fee — but they are also quoted as a flat fee before work begins. You know the number first.
Flat Fee vs. Hourly at a Glance
| | Flat fee | Hourly at $450 |
|---|---|---|
| One-minute call | Included | $45 |
| Press release review | Included | Billed per revision |
| Monthly budget | Known in advance | Known after the invoice |
| PPM or S-1 | Quoted up front | Open-ended |
Which One Is Right for You?
If you need one defined project and nothing else, a project flat fee is usually best. If you have an ongoing stream of questions — and every company raising capital or reporting to the SEC does — a monthly flat fee usually costs less than hourly over a year and, more importantly, gets used. A lawyer you call before the press release goes out is worth far more than one you call after.
Details are on the Flat-Fee Securities Lawyer page.
Related Reading
Questions about how this applies to your company? Email me directly at flehrer@securitiesattorney1.com or call (561) 706-7646. No intake form, no screening call.
This post is general information, not legal advice.
Authoritative Sources
- SEC Enforcement Manual, Division of Enforcement — U.S. Securities and Exchange Commission
- SEC Division of Enforcement — Litigation Releases — U.S. Securities and Exchange Commission
- Securities Act of 1933 (15 U.S.C. §§ 77a et seq.) — U.S. Government Publishing Office
- Securities Exchange Act of 1934 (15 U.S.C. §§ 78a et seq.) — U.S. Government Publishing Office
Primary sources are cited so readers can verify the law directly. Rules and staff guidance change; see our editorial and corrections policy to report an error or an outdated citation.
Frederick M. Lehrer served as an enforcement attorney in the SEC's Division of Enforcement at the Southeast Regional Office from 1991 through 2000, and concurrently as a Special Assistant United States Attorney in the Southern District of Florida from 1997 through 1999, prosecuting securities-related financial crimes. He has practiced securities and corporate law in private practice for more than twenty-five years, advising issuers worldwide on SEC registration, disclosure obligations, Regulation D private placements, Regulation A offerings, and going public transactions. The firm is based in Florida and serves clients internationally.
Questions about how this applies to your company are answered personally — most within the same business day. Flat-fee arrangements available for most work.