Annual company sales

All

Under $1 mil.- $3 mil.- $5 mil.- $25 mil. respondents

$1 mil. 2.9 mil. 4.9 mil. 24.9 mil. or more

Percent of respondents

Method

Hourly rate 67% 67% 72% 73% 63% 69%

Negotiated fee 16 17 15 7 6 14

Retainer 7 12 12 21 28 13

Flat fee 12 9 5 7 3 9

Annual legal fee

Under $1,000 39 15 5 3 20

$1,000-$4,999 46 54 44 29 7 43

$5,000-$9,999 6 17 31 18 4 14

$10,000-$19,999 4 8 13 21 19 11

$20,000 or more 5 6 7 29 70 12

Average annual $4,280 $5,370 $7,270 $15,050 $42,590 $8,400

fee

Regardless of company size, most businesses compensate their attorneys by the hour. However, a few smaller companies pay negotiated or flat fees, while some larger firms rely on retainers. Among the smallest companies, annual legal expenses are generally less than $5,000.