How a Law Firm Hired a Lawyer to Draft a Cost Sharing Agreement in New York

In 2022, a law firm in New York sought assistance with drafting a cost-sharing agreement between a Dutch home entity and a U.S. entity to facilitate their small online sales operation. The client aimed to effectively allocate various operational costs, such as office rent, employee wages, and marketing expenses, based on the revenue generated by both entities. It was essential for the cost-incurring party to clearly list and report all expenditures and their allocation calculations, ensuring no mark-up on the allocated costs. As a result, the client received three proposals from licensed lawyers, with flat fee bids ranging from $350 to $995, all submitted to meet the requested deadline of less than a week.