For me, I will like to have in sub-domain. Sub-domain acts as separate domain which means you can build a complete set of pages there. Yours is a law company that differs in each location which means you need to have separate set of pages for defining your services with respect to each area...
Which ever company you go for, ask for the budget they invest for PPC for your suggested keywords. What average position they will target during certain time frames. What type of testing they do for your landing pages? If they are going to create a new landing page for PPC? If yes why?
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