When it comes to legal services, it’s easy to get confused between all the options available to you. Law firms and legal advisory firms both render legal services, but the types of services that they render and the way in which they render the services can differ greatly. Where it gets tricky is that they can also be super similar. Same same, but different.
To help you make a more informed decision, let’s delve into the differences between law firms and legal advisory firms to get a better understanding of what your options are when obtaining legal advice.
So what are the differences?
Which kind of firm you approach depends largely on what your needs and budget are. For each category, we'll give you our Difference-o-Meter score and summary (which is a totally legit thing that we absolutely did not make up while writing this). However, if even our best attempts don't clarify things enough for you, why not book a free consultation with us to find out more?
Type of entity
Difference-o-meter score: 6 (Different rules apply)
LAW FIRMS | LEGAL ADVISORY FIRMS |
|---|---|
Law firms must be personal liability companies. It’s common for law firms to have surnames in their name. | Legal advisory firms do not have to be personal liability companies. These firms are typically private companies and can use (almost) any name. |
What services do they offer?
Difference-o-meter score: 4 (More or less the same)
LAW FIRMS | LEGAL ADVISORY FIRMS |
Some firms offer almost any legal service that you can think of; from divorces to work related to companies, construction, and the environment. Other firms specialise in one or two very specific services, such as tax and estate planning, or adoption and surrogacy. | Legal advisory firms are similar to law firms in the sense that some focus on specific services while others take a much more general approach. Where legal advisory firms differ is in that they are more likely to collaborate with other service providers to help you with whatever it is that you need. |
So, you're all lawyers?
Difference-o-meter score: 2 (Pretty much)
LAW FIRMS | LEGAL ADVISORY FIRMS |
Law firms are made up of a team of people, including practising admitted attorneys of the High Court of South Africa. | Been there, done that, got the t-shirt. While there are legal advisors who did not go the attorney route, most legal advisors are former attorneys and advocates. |
General approach
Difference-o-meter score: 8 (Nelson & Murdock vs. Daredevil)
LAW FIRMS | LEGAL ADVISORY FIRMS |
Practising attorneys have a more zoomed-in focus on whatever they were appointed to do. Law firms tend to be traditional and formal; think Suits. | Legal advisors tend to take more of a holistic approach to problem-solving. They are also more relaxed in their style of work, prioritising innovation and creativity. |
Litigation - yay or nay?
Difference-o-meter score: 9 (Yay / Nay)
LAW FIRMS | LEGAL ADVISORY FIRMS |
Being sued, or suing someone, means you need an attorney that litigates. While there are a handful of law firms that do not litigate at all, most law firms have a litigation department. | Legal advisory firms do not litigate, but because most legal advisors have litigated at some stage, they will be in a great position to refer you to a practising attorney at a law firm. |
Money money money
Difference-o-meter score: 7 (If money is tight a legal advisory is the way to go)
LAW FIRMS | LEGAL ADVISORY FIRMS |
Law firms tend to follow more traditional payment structures. They (almost always) charge per hour and are really good at keeping track of expenses, from minutes on the phone to sheets of paper, to kilometres driven. | As with most other things, legal advisory firms typically follow a more flexible approach to fees. Some even offer payment plans. In general, the legal advisory option is the more cost-effective route. |
Which should I choose?
At the end of the day, it all depends on what your needs, budget and preferences are.
You should go with a law firm if:
🤑 You want a formal, structured setting where you can afford to pay by the minute
📄 You want to sue the pants off someone
🧑⚖️ Your legal issue is specific and requires litigation
You should go with a legal advisory firm if:
💸 You're on a tight budget
💡 You want a more creative, bespoke approach to your legal challenges
🤝 You prefer a personal approach
🧠 Your legal challenges require a complex solution that might not include litigation
If legal advisory firms don't litigate, what do they do?
It's a good question that we get a lot.
We DRAFT – a lot. Internal documents like MOIs and Shareholders’ Agreements, things that your clients will see like Service Agreements, Terms of Use or your Privacy Policy. Basically, anything you can think of. It’s not only our job to draft a certain document, but also to know what type of document it is that you need in the first place.
We REVIEW – basically everything. Before you sign anything on behalf of your business, it’s always a good idea to have one of us look it over to make sure that you aren’t signing your life, wife or inheritance away without it really being necessary.
We ADVISE – and we love it. It’s our job to tell you how to execute your big plans in ways that make sense from a legal and business perspective. We’ll also help you to minimise risks along the way and guide you through them when problems do pop up.
We LIAISE – because we love people and we’re not afraid to admit that we don’t always know everything about everything. Building valuable relationships with others to better serve our clients is something that is really important to us. Naturally, you don’t have to worry about it costing you double in the end. It’s simply not our style.
We WORK OUR MAGIC WITH PEOPLE – because sometimes all you need is an ear to bounce off an idea, or someone to tell you that there really is no need to worry.
If a legal advisory firm is the best fit for your needs (or you're still not certain and need more help), click the button below to book a free consultation with us. We'd love to work with you.
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