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