A New Territory for Your Firm Is Within Reach, but Plan Ahead

Aug. 13, 2025, 8:30 AM UTC

Expanding your law firm into another state sounds ambitious—and it is. But what most firm owners don’t see at first is how complex that growth can become.

Opening another office in a new state isn’t just about growing your client base or putting more pins on the map. It’s about stepping into unfamiliar legal territory, navigating new regulations, and building a reputation from the ground up all over again.

This year, my firm opened its third office in as many states. When I started out years ago in Amarillo, Texas, I couldn’t have imagined we’d one day serve clients across New Mexico and Arizona, too. But I’ve learned that with the right mindset and preparation, multi-state growth is absolutely within reach.

Here’s what you need to think about before you cross state lines.

Viability of Expansion

Expanding your law firm is a major business decision that should correlate with growth.

Look at metrics that indicate readiness, such as client demand, attorney capacity, and revenue trends. A sustained increase in inquiries from outside your current jurisdiction, a consistent backlog of work, or an uptick in referrals from neighboring states may signal that your existing infrastructure is being stretched. If your attorneys are consistently billing near or at capacity, and you’re turning away work, that could be a sign it’s time to grow.

Evaluate operational readiness. Do you have the internal systems in place—such as case management tools, billing systems, and administrative support—to scale effectively? Expansion shouldn’t come at the cost of service quality or firm morale.

Leadership bandwidth must be considered. If your current leadership team is already maxed out, adding another location may strain oversight unless you’re prepared to delegate authority or bring in regional management.

Finally, geographic market analysis is essential. Look closely at the legal landscape of the area you’re considering:

  • What’s the competitive environment like?
  • Are there underserved practice areas?
  • Does your firm have a strong brand or unique offering that will resonate with local clients?

Expanding into a new jurisdiction without a clear value proposition or understanding of the local legal market can lead to costly missteps.

Permission to Practice

If you’re considering expanding your law firm into another state, target one that has reciprocity with the jurisdiction in which you’re currently licensed.

Reciprocity is a legal arrangement between states that allows attorneys to gain bar admission in a new state without having to take that state’s bar exam, provided certain requirements are met. These often include a minimum number of years in good standing, active legal practice, and sometimes even completion of a course on local law and ethics.

For example, Texas maintains reciprocity agreements with 43 other states, making it relatively simple for Texas-based lawyers to expand across the US. However, reciprocity isn’t always mutual or symmetrical. A state may accept lawyers from another state without requiring a new bar exam, but its own lawyers may not receive the same privilege in return. California, for example, doesn’t have reciprocity with any other state, but many states permit attorneys licensed in California to practice in their jurisdictions.

An alternative and increasingly popular route is to expand into a state that has adopted the Uniform Bar Examination. The UBE is a standardized bar exam that allows lawyers to transfer their scores between UBE states, subject to each state’s score thresholds and time limits for score validity. New York, Colorado, and Washington have adopted the UBE, and transferring a qualifying score into one of these states can often be a less burdensome route to bar admission.

However, this route isn’t available everywhere. California and Florida neither accept UBE scores nor offer reciprocity. In these jurisdictions, every attorney—regardless of their experience or out-of-state licensure—must sit for and pass the full bar examination.

You can save a lot of time by conducting thorough research on each target state’s admission policies, including reciprocity agreements, UBE participation, and additional requirements such as moral character evaluations or state-specific law components. Understanding these nuances early in the process can help your firm avoid costly delays and ensure a smoother transition as you scale your legal practice across state lines.

Small Business Feel

Growth doesn’t have to come at the expense of your firm’s identity. Many clients are drawn to small firms because of their personal service, close client relationships, and community-oriented approach. These are qualities that can—and should—be preserved as your firm grows. Maintaining the feel of a small business can be one of your greatest competitive advantages, especially in a legal marketplace that’s increasingly saturated with large, impersonal firms.

  • Prioritize personalized client service: Ensure every client feels known and valued by assigning dedicated case managers or attorneys and maintaining regular, direct communication.
  • Hire for cultural fit: Bring on attorneys and staff who align with your firm’s mission, values, and approach to client care.
  • Build community connections: Encourage involvement in local bar associations, sponsorships, and neighborhood events to foster a community presence.
  • Leverage technology without losing the human touch: Use automation and software for efficiency, but always offer clients easy access to real people for questions, concerns, and case updates.

Expansion doesn’t have to mean becoming a faceless institution. You can scale your firm while still delivering the high-touch service and close client relationships that define the best small businesses.

New jurisdictions can be a rewarding move that strengthens your brand, broadens your client base, and positions your firm for long-term growth. Successful expansion, however, requires more than just ambition—it demands careful planning, a deep understanding of jurisdictional rules, and a commitment to operational excellence.

Growth shouldn’t come at the expense of the qualities that made your firm successful in the first place. As you expand, strive to maintain the personal, client-centered approach that sets your practice apart. With the right strategy and mindset, your firm can scale its reach while staying true to its roots and offering the kind of trusted legal representation that feels local.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.

Author Information

James Wood is founder of James Wood Law and represents individuals, children, and families against corporations, insurance companies, hospitals, and others that caused harm through neglect, indifference, malice, or greed.

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To contact the editors responsible for this story: Jada Chin at jchin@bloombergindustry.com; Jessica Estepa at jestepa@bloombergindustry.com

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