In the legal profession, discussions about compensation often focus on Big Law’s massive paychecks — the $225,000 starting salaries and the multi-million-dollar partner draws. But what about the majority of U.S. lawyers who work outside the Big Law bubble — the ones in small and mid-size firms?
Strong Earnings Despite Smaller Scale
According to the survey, approximately 88% of solo and small-firm attorneys reported earning at least $100,000 annually, up nearly 9% from the previous year. This rise suggests that smaller firms are benefiting from a more stable post-pandemic client market and more diversified practice areas.
Interestingly, attorneys in slightly larger small firms — typically those with 11 to 25 lawyers — are seeing the biggest gains. In this group, the number of respondents reporting $500,000 or more in annual earnings doubled, jumping from 11% in 2023 to 24% in 2024.
Still, compensation varies widely. Solo practitioners experience the broadest income range: while some report six-figure incomes, a meaningful portion continue to earn below $100,000 annually. The data underscores the entrepreneurial reality of solo and small-firm practice — success often depends on personal client development and efficient business operations.
What Determines Compensation?
The survey highlighted several key factors influencing pay in small and mid-size law firms:
1. Firm Size
Firm size directly correlates with compensation. Lawyers at firms with 10–50 attorneys generally earn more than solo practitioners or those in micro-firms. Larger small firms tend to have more consistent client pipelines, more sophisticated billing systems, and stronger administrative infrastructure — all of which help drive higher profitability per attorney.
2. Geography
Location continues to be a defining factor in attorney pay. Lawyers in major metropolitan markets such as New York, Washington D.C., Los Angeles, and San Francisco command higher billing rates and, consequently, higher incomes. Regional and rural practitioners, on the other hand, often see lower rates due to local market constraints.
However, the rise of remote work has begun to narrow this gap. Some attorneys practicing virtually now serve clients in higher-paying regions, allowing them to boost income while maintaining a lower cost of living.
3. Practice Area Specialization
The choice of practice area remains one of the strongest determinants of income. Attorneys focusing on high-value areas such as intellectual property, complex litigation, real estate, and corporate transactions tend to out-earn their peers in lower-margin fields such as family law, criminal defense, or personal injury at the small-firm level.
Specialization, rather than general practice, is proving to be a critical factor. Lawyers who position themselves as subject-matter experts in niche markets can command premium rates — even within small firms.
4. Business Development and Origination
For small and mid-size firm lawyers, compensation is often directly tied to business development. Over half of partners surveyed indicated that client origination and collections accounted for at least half of their total pay. This entrepreneurial component differentiates small-firm life from the structured salary systems of Big Law.
The takeaway: building a strong client base and maintaining high collections are essential to income growth in smaller practices.
5. Gender and Diversity Pay Gaps
Unfortunately, the survey also revealed ongoing pay disparities. Male attorneys were significantly more likely to report earnings above $250,000 compared to women and BIPOC attorneys. While the gap has narrowed slightly in recent years, it remains an issue that small-firm leaders and bar associations are increasingly working to address.
The Entrepreneurial Nature of Small-Firm Law
Small and mid-size firms operate more like small businesses than corporate institutions. Compensation isn’t only a function of seniority or title — it reflects personal productivity, collections, and leadership within the firm. This structure gives ambitious lawyers significant income potential but also higher financial risk.
For example, a small-firm partner who successfully cultivates niche clients and controls operational expenses can earn well above national averages. Conversely, attorneys with inconsistent billable work or limited business development may find their earnings plateau.
The flexibility and autonomy of smaller firms also allow for greater innovation in compensation models. Many small firms now offer hybrid structures, combining base salary with performance-based bonuses, equity shares, or revenue splits tied to origination. These incentives can dramatically increase total compensation for entrepreneurial attorneys.
What This Means for Legal Professionals
For lawyers considering a move from Big Law to a smaller setting, or those evaluating solo practice, the compensation picture is encouraging but nuanced:
- Small-firm work offers upside potential, especially for those who bring or build a client base.
- Geographic mobility matters — relocating or serving clients in higher-rate regions can lift earnings.
- Specialization equals profitability — mastering a high-value niche pays off.
- Networking and business skills are essential — legal expertise alone isn’t enough.
Final Thoughts
While Big Law dominates headlines for its towering salaries, the reality is that small and mid-size firms remain the backbone of the U.S. legal profession — and many lawyers in this space are earning impressive incomes. The key lies in balancing legal skill with business acumen.
As the legal industry evolves, small-firm lawyers who adapt to changing client needs, embrace technology, and focus on niche markets are proving they can thrive financially — even without the Big Law nameplate.
For attorneys exploring opportunities across firm sizes, LawCrossing offers an extensive database of positions across small, mid-size, and large law firms nationwide. Whether you’re seeking better compensation or a more entrepreneurial path, LawCrossing can help you find the right fit for your legal career.