How Much Should Legal Documents Cost? (Canadian Pricing Guide)
What you should expect to pay for employment contracts, NDAs, shareholder agreements, and other startup legal documents in Canada.
Key Takeaways
✓ Lawyer rates: $300-$600/hour for startup lawyers in major Canadian cities
✓ Document costs: $1,500-$5,000 per document with a lawyer, $59-$199 with templates
✓ Total legal budget: $10K-$30K for first year of startup legal needs
✓ When to use templates: Standard documents like NDAs, employment contracts, contractor agreements
Lawyer Hourly Rates in Canada
Canadian startup lawyers charge $300-$600/hour depending on city, firm size, and experience level. Toronto and Vancouver lawyers are at the high end ($400-$600/hour), while Calgary, Montreal, and Ottawa lawyers charge $300-$450/hour. Junior associates charge less, senior partners charge more. These rates are for business/corporate lawyers—litigation lawyers charge similar or higher rates.
Most legal work is billed hourly, not flat-fee. When a lawyer quotes "$3,000 for an employment contract," they mean "approximately $3,000 based on typical time required, but actual cost depends on hours spent." If negotiations drag on or the document is complex, the final bill will be higher. Always ask for an estimate range, not a fixed price.
What Legal Documents Actually Cost
Typical Legal Costs (With Lawyer)
| Document | Lawyer Cost | Template Cost |
|---|---|---|
| NDA | $500-$1,500 | $59 |
| Employment Contract | $1,500-$3,000 | $59 |
| Contractor Agreement | $1,000-$2,500 | $59 |
| Shareholder Agreement | $3,000-$8,000 | $59 |
| Terms of Service | $2,000-$5,000 | $59 |
| Privacy Policy | $1,500-$3,500 | $59 |
When to Use a Lawyer vs. Template
Use a lawyer for complex, high-stakes, or unusual situations: negotiating investment terms, resolving disputes, structuring complex transactions, or dealing with regulatory issues. Use templates for standard, routine documents where the stakes are lower and the situation is common: NDAs, employment contracts for junior employees, contractor agreements, and standard terms of service.
A good rule of thumb: if the document is worth more than 10x the lawyer's fee, use a lawyer. If you're raising $500K, spend $10K-$30K on legal fees. If you're hiring a $60K employee, don't spend $3K on their employment contract—use a $59 template. Save your legal budget for situations where expertise actually matters.
The Bottom Line
Legal documents cost $1,500-$5,000 each with a lawyer, or $59-$199 with quality templates. For standard documents (NDAs, employment contracts, contractor agreements), templates provide 90% of the value at 2% of the cost. For complex situations (fundraising, disputes, regulatory issues), hire a lawyer. Budget $10K-$30K for your first year of startup legal needs, and allocate that budget strategically to situations where legal expertise actually matters.
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