You’ve heard the buzz. “Become a contract paralegal and work for yourself.” The internet is practically daring you to use its technology so you can decide when to work, where to work, and for whom to work.
Sounds good, right?
And it is good for many paralegals, but becoming a successful contract paralegal requires more than just a laptop and broadband connection. If the idea of becoming a contract paralegal appeals to you, this article can help you figure out whether you’ve got the skills and aptitude for it and provide valuable tips to help get you started.
Today’s contract paralegals leverage sophisticated litigation support platforms to deliver professional e-filing services, process serving coordination, and document retrieval from anywhere with internet access. Understanding how to work efficiently with these technology-enabled services is essential to your success as an independent legal professional.
What is a contract paralegal?
Let’s clarify the difference between a contract paralegal and a similar sounding but distinctly different role: independent paralegal. Here’s what defines each:
| Contract Paralegal | Independent Paralegal |
| An individual who performs substantive legal work for law firms, corporations, or other entities but is self-employed. (Also known as a freelance paralegal.) Source: California Alliance of Paralegal Associations | A non-attorney who provides legal document preparation services to the public and may be referred to as a legal document preparer or forms practitioner. Source: American Public University |
As the definitions above note, the contract paralegal contracts with law firms. Their work is reviewed by the contracting attorney, who is likewise responsible for whatever work the contract paralegal has done.
An independent paralegal does not work under the supervision of an attorney.
Why become a contract paralegal?
Some opt for contract work because they want control over whether they work full-time, part-time, or just enough hours for the work to be a side hustle. For others, controlling whether they can work a flexible schedule in a home office is what draws them to this role.
Still others may like the idea of becoming a contract paralegal because they feel fed up with the stress of the law firm grind and want to protect their personal wellness. Doing contract work can also give them an opportunity to walk away from traditional employment and explore other areas of specialization or to have a regular change of work environments.
While becoming a contract paralegal can open the door to a more worker-friendly setting, perhaps the greatest benefit is that it offers those with an entrepreneurial bent a platform for becoming their own boss and a business owner.
(Almost) everyone is doing it
Many experienced legal professionals have—at some point—felt tempted to leave the conventional workforce and strike out on their own. In fact, according to a recent survey, nearly one-third of employees polled indicated they left their jobs specifically to start a business.
Online technology makes it easier than ever for talented paralegals to do this because it equips them with resources only the deep pockets of established companies could once afford, such as:
- Free or low-cost professional websites
- Free marketing on social media platforms
- Fast paperless payment via online payment platforms
- Billable work that can be performed online through a litigation support service provider’s portal including e-filing, service of process, and document retrieval. The portal allows paralegals to access the tools and data they need to perform these tasks from anywhere internet access is available.
Contract paralegals who partner with comprehensive litigation support providers like Proceed gain access to nationwide service of process capabilities, sophisticated e-filing systems, and expert appellate services—all critical tools for delivering professional results to law firm clients.
You’re a good deal for law firms
It’s fair to say that in some cases contract paralegals may help a law firm run leaner. The firm simply pays the contract paralegal an agreed upon wage and doesn’t have to bother with the additional cost of a benefits package, payroll taxes, or equipment and workspace.
In contrast, the expense of recruiting and onboarding a traditional hire can amount to a costly game of roulette, averaging about $4,700. (Note: All figures are based on 2022 data.)
That’s $4,700 paid for each new hire, regardless of whether the employee flops after two days or stays until retirement.
The expense of employer-paid taxes and employee benefits also inflates the cost of hiring a traditional, office-based paralegal. Those “hidden” payroll expenses can increase the all-in price tag to 1.25 to 1.4 times the employee’s salary.
Through the eyes of a law firm’s CFO, here’s how that looks:
Hiring a paralegal as a full-time employee at an annual salary of $70,000 will actually cost a firm a benefited salary of $87,500 to $98,000.
Speaking of money
Let’s look at the earning potential of contract paralegals in California, which has more paralegal jobs than any other state. The salary range can vary widely depending on factors that include practice specialty, firm size, and professional experience.
According to Indeed.com, the average hourly wage for a contract paralegal in California is $34.15 per hour. Narrowing the focus to specific metropolitan areas, we see the average hourly wage in San Francisco is $38.50; in Los Angeles $34.56; in San Diego $33.75; and in San Bernardino $31.64.
Those figures offer an incomplete picture of actual earnings for contract paralegals working in the state, however, and don’t account for what experienced, highly skilled paralegals can earn. For example, one veteran California paralegal reportedly began her contract with a firm charging $75 per hour for probate work. That figure soon rose to $115 per hour.
The key to finding such lofty earnings, it seems, is to find a niche where you’ll be paid for your subject matter expertise.
Test yourself
By now you may be feeling pretty good about becoming a contract paralegal. However, before you turn in your resignation and hang your shingle, make sure you can check the following boxes.
Can you live without employer-sponsored benefits?
Some of the most affordable non-employer sponsored insurance programs are HMOs or programs with only a limited number of physicians that may not include your primary care provider.
Are you entrepreneurial?
Unless a throng of law firms is already knocking at your door, you’ll most likely need to market yourself to pull in leads and close business. Most successful entrepreneurs are also competent networkers, so if you’re an introvert, consider whether you have the personality traits to succeed.
Are you a good administrator?
You’ll have to pay self-employment taxes and track expenses, so good follow-up and follow-through is a must. You can outsource these tasks to a bookkeeper or accountant but doing so will cut into your earnings.
Can you prove your value to an attorney?
You may think you’re being productive, but you’ll need to prove it. Finding that proof may mean you have to examine invoice data and crunch the numbers to determine how your presence has increased the firm’s billing.
Can you build rapport with the law firm staff?
A full spectrum of personalities inhabits the legal profession. A successful contract paralegal must be prepared to work with them all—at the office and from home.
Are you up to speed with the technologies law firms use?
Regardless of whether it’s trial presentation software or office management software, your skills must be sharp, and you must understand the practice’s preferred tech stack. Remember, part of the contract paralegal’s appeal is that they should require minimal training.
Who’s on your litigation support service provider shortlist?
Be sure you have a vendor that can provide customer and court references. Your preferred vendor should also provide e-filing in every jurisdiction where you work, in addition to the electronic and physical services you need most from a single customer portal.
Find your gig
Once you make the transition to contract work, you’ll want to fill your client book quickly. Niche practice areas can help you do that because they offer some of the best opportunities for skilled contract paralegals. Here are several areas to target:
Litigation
A successful contract paralegal in the litigation setting may be one who can write specific types of pleadings or who excels at drafting motions. Understanding litigation support workflows—including how to coordinate process serving, manage court filings, and track service deadlines—is essential for paralegals working in this practice area.
Estate planning
Many estate planning attorneys prefer to outsource probates to contract paralegals because they’re time-consuming. And, oftentimes, the attorney’s staff doesn’t have the training to complete probates properly. Therefore, contract paralegals who are particularly good at probate-related work may find opportunities in this specialty.
Small firms or solo practitioners
Smaller law offices simply may not have the resources to hire a full-time paralegal. But, by having you handle overflow or administrative tasks, you free up the attorney’s time to devote to billable hours.
Small firms especially benefit from contract paralegals who know how to leverage professional litigation support services, allowing the practice to compete with larger firms without the overhead of in-house support staff.
Real property law
You’re unlikely to become bored in real property law. This type of practice requires many different tasks associated with due diligence and often demands interaction with multiple parties. It’s fast-paced and can demand long hours as well as weekend work to close transactions on schedule.
Weekends and evenings
Being able to work outside of regular office hours may give you a leg up as a contract paralegal. This type of schedule flexibility may make you attractive especially to law firms that work on deadline-driven projects such as mergers and acquisitions, real property law, and government projects.
Essential skills for contract paralegal success
Beyond the technical legal knowledge required for your practice area, successful contract paralegals must develop several critical competencies:
Technology proficiency
Contract paralegals must be comfortable working with:
- Case management software such as Clio, MyCase, or Practice Panther
- Document management systems for organizing and retrieving case files
- E-filing platforms for submitting documents to courts electronically
- Communication tools including video conferencing, project management platforms, and secure messaging
- Time tracking and billing software to accurately invoice clients
Project management
When you work independently, you become responsible for managing your own workload, meeting deadlines, and coordinating with multiple law firm clients simultaneously. Strong organizational skills and the ability to prioritize competing demands are essential.
Communication excellence
Clear, professional communication is critical for contract paralegals. You must be able to:
- Provide regular status updates to attorney clients
- Ask clarifying questions when instructions are unclear
- Document processes and decisions thoroughly
- Respond promptly to inquiries
- Set realistic expectations about timelines and deliverables
Business development
Unlike traditional employees, contract paralegals must continuously market their services and maintain a pipeline of potential clients. This requires:
- Networking at legal association meetings and events
- Maintaining relationships with past clients who may need future assistance
- Building a professional reputation through quality work and reliable service
- Digital presence via LinkedIn and a professional website
- Referral cultivation from satisfied attorney clients
Building your contract paralegal practice
Start with a solid foundation
Before accepting your first contract engagement, ensure you have the basics in place:
Business structure: Decide whether you’ll operate as a sole proprietor, LLC, or other entity. Consult with an accountant or business attorney to understand the tax and liability implications.
Professional liability insurance: Also known as errors and omissions insurance, this coverage protects you if a client alleges that your work caused them financial harm.
Contracts and agreements: Develop a standard engagement letter or contract that outlines your scope of work, rates, payment terms, confidentiality obligations, and other key terms.
Accounting systems: Set up reliable bookkeeping to track income, expenses, estimated tax payments, and client billing.
Professional development: Maintain your paralegal certification or credentials and pursue continuing education to stay current with legal developments and technology.
Establish your rates
Research market rates for contract paralegals in your geographic area and practice specialty. Consider these factors when setting your rates:
- Your experience level and specialized expertise
- The complexity of the work
- Whether you’re providing services remotely or on-site
- The going rates in your local market
- The value you bring through efficiency and specialized skills
Remember that as a self-employed contractor, you must account for expenses that employees don’t face, including:
- Self-employment taxes
- Health insurance premiums
- Professional liability insurance
- Technology and software subscriptions
- Office expenses
- Continuing education costs
- Marketing expenses
Market your services strategically
Successful contract paralegals build their client base through multiple channels:
Professional associations: Join state and local paralegal associations, attend meetings, and volunteer for committees. These organizations provide networking opportunities and professional development resources.
Attorney connections: Reach out to attorneys you’ve worked with previously, whether as a colleague or employee. Let them know about your contract services and the types of projects you’re available to handle.
LinkedIn presence: Maintain an active LinkedIn profile highlighting your expertise, experience, and the services you offer. Share relevant legal industry content and engage with your network regularly.
Specialized directories: List your services in directories specifically for contract paralegals or legal service providers.
Local bar associations: While you cannot be a member as a non-attorney, you may be able to attend certain events or access referral opportunities through paralegal sections.
Working effectively with litigation support providers
As a contract paralegal, you’ll frequently coordinate with litigation support service providers on behalf of your law firm clients. Understanding how to work efficiently with these providers is crucial to your success.
Choose the right partners
Select litigation support providers who offer:
- Comprehensive services including e-filing, process serving, court research, and document retrieval
- Nationwide coverage to support clients with multi-jurisdictional matters
- Technology platforms that integrate with law practice management software
- Transparent pricing with no hidden fees
- Responsive customer support to troubleshoot issues quickly
- Proven reliability demonstrated through client references and court relationships
Streamline your workflow
Efficient contract paralegals develop standardized processes for routine tasks such as:
- Filing documents: Maintain checklists for different document types to ensure all requirements are met.
- Coordinating service of process: Track service attempts, maintain proof of service records, and follow up on hard-to-serve defendants.
- Managing deadlines: Use calendar systems that account for court rules on filing and service deadlines.
- Document organization: Establish consistent naming conventions and folder structures for easy retrieval.
Leverage technology for competitive advantage
Contract paralegals who maximize technology efficiency can take on more clients and increase their earning potential. Key technologies to master include:
- E-filing systems that allow you to file documents in multiple jurisdictions
- Electronic service capabilities for faster, more reliable service of process
- Document automation tools for generating routine forms and pleadings
- Cloud-based storage for secure access to case files from any location
- Time tracking apps that integrate with invoicing software
Common challenges and how to overcome them
Income variability
Unlike salaried positions, contract work can involve feast-or-famine cycles. Mitigate this challenge by:
- Maintaining an emergency fund covering three to six months of expenses
- Cultivating multiple client relationships so you’re not dependent on a single source
- Setting aside money during busy periods to cover slower times
- Considering part-time contract work while maintaining traditional employment initially
Isolation
Working independently can be lonely compared to the social environment of a law office. Address this by:
- Joining professional associations and attending regular meetings
- Scheduling coffee or lunch meetings with other legal professionals
- Working from co-working spaces occasionally for human interaction
- Participating in online communities for contract paralegals
Scope creep
Clients may ask you to perform tasks outside your original agreement without additional compensation. Prevent this by:
- Clearly defining the scope of work in your engagement letter
- Tracking your time meticulously to identify when you’re doing extra work
- Communicating proactively when requests fall outside the original scope
- Being willing to politely decline or renegotiate terms when appropriate
Client acquisition
Building a steady stream of clients takes time and persistence. Accelerate this process by:
- Asking satisfied clients for referrals and testimonials
- Following up with prospects who expressed interest but didn’t immediately hire you
- Staying visible through professional association involvement
- Demonstrating expertise by writing articles or presenting at legal education events
The future of contract paralegal work
Several trends are shaping the future of contract paralegal work:
Increased acceptance
Law firms are becoming more comfortable with flexible staffing models, creating more opportunities for contract paralegals. The COVID-19 pandemic accelerated the acceptance of remote legal work, making geographic boundaries less relevant.
Technology enablement
Advances in legal technology continue to make remote collaboration easier and more secure. Cloud-based practice management systems, virtual meeting platforms, and electronic court filing systems enable contract paralegals to serve clients anywhere.
Specialization premium
As the legal industry becomes more complex, specialized expertise commands premium rates. Contract paralegals who develop deep knowledge in niche practice areas—such as patent litigation, securities law, or immigration—can often charge significantly higher rates than generalists.
Alternative legal service providers
The growth of alternative legal service providers (ALSPs) and managed legal services companies is creating new channels for contract paralegals to find work. These companies contract with law firms and corporate legal departments to provide flexible legal staffing.
Get your wings
Still wondering whether becoming a contract paralegal is the right move? There’s only one way to know whether the idea will fly.
But before you cut the cord as a fully employed paralegal, assess your suitability carefully. If you have lingering questions or difficulty finding answers, approach your peers at association meetings or look to professional organizations that serve paralegals.
The legal industry offers tremendous opportunities for skilled paralegals who want greater autonomy, flexibility, and control over their careers. With careful planning, the right technology partners, and a commitment to professional excellence, you can build a thriving contract paralegal practice.
Partner with Proceed for contract paralegal success
At Proceed, we understand the unique needs of contract paralegals who require reliable, professional litigation support services to serve their law firm clients effectively. Our comprehensive platform, nationwide coverage, and commitment to precision make us the ideal partner for your independent legal practice.
Whether you need assistance with e-filing, service of process, appellate services, or dispute management, Proceed provides the technology-enabled solutions and expert support that empower contract paralegals to deliver exceptional results.
Contact Proceed today to learn how our litigation support services can help you build a successful contract paralegal practice. Discover more about Proceed and our commitment to supporting legal professionals nationwide.
