| Foremost facts to know regarding a law firm | | | | |
| Have you been to a law firm office or have sough the | | | | - Sole Proprietorship - only one attorney makes up the |
| services of a lawyer through a law firm? All over, you | | | | whole law firm. He or she is responsible for the profit, |
| may notice many law firms advertising their legal | | | | liability and loss that the firm may incur. |
| services. However, do you really know the essentials | | | | |
| about a law firm and its different forms and | | | | - General Partnership - every lawyer in the firm has an |
| structures? | | | | equal share of ownership and liabilities incurred. |
| | | | |
| A law firm, in itself, is a form of business entity | | | | - Professional corporations - has the same |
| established by one or more attorneys/lawyers who | | | | characteristics of a business corporation wherein the |
| are practicing either various areas of the law or just | | | | lawyers issue stocks. |
| one. Law firms provide different legal services for | | | | |
| clients. Prospective clients are either individuals or | | | | - Limited Liability Company (LLC) - in this structure, the |
| corporations with concerns that need the necessary | | | | owner-lawyers are addressed as "members," |
| or corresponding legal action. | | | | however, they have no direct liability to the law firm's |
| | | | third party creditors. |
| Among the different kinds of legal services, the | | | | |
| primary one being offered by law firms is professional | | | | - Professional Association - its structure has similarities |
| advice for clients with regards to their legal | | | | with the LLC or Professional Corporation. |
| responsibilities and rights. They are also expected to | | | | |
| represent clients in business transactions, civil or | | | | - Limited Liability Partnership (LLP) - the owner-lawyers |
| criminal cases and other matters wherein legal | | | | consider themselves partners, though no partner can |
| assistance or intervention is necessary. | | | | be liable to any of the law firm's third party creditor. In |
| | | | addition, any one of the partners cannot be held |
| Smaller law firms tend to be focused on specializing in | | | | accountable for any negligence done by a partner. The |
| specific areas of the law, for example, personal injury, | | | | tax being charged for an LLP is that of a partnership |
| employment law, tax law, business and/or corporate | | | | but enjoys a corporation's liability protection. |
| law. On the other hand, larger firms tend to be | | | | |
| composed of several number of practice groups | | | | In the United States and many other countries, a rule |
| specializing in different areas. This system allows the | | | | is imposed that ownership interest or management of |
| firm to have a diversified market and client base. They | | | | a law firm can only be given or done by lawyers. As |
| can also provide many types of services for their | | | | such, the law firms' capital through "initial public |
| clients' satisfaction. | | | | offerings" on the stock market, like most other |
| | | | corporations, cannot be raised immediately. |
| There are various ways and methods in the | | | | |
| organization of a law firm. It depends upon the | | | | This rule is being promulgated by the American Bar |
| jurisdiction in which the firm's law practice is engaged. | | | | Association in the U.S. and is being adhered to in |
| | | | almost all of the U.S. jurisdictions. |
| Here are the usual law firm arrangements: | | | | |