A law firm is a business body consisting one or more lawyers who engage in the practice of law. Their prime job is to guide clients on legal matters with responsibility and to represent clients on civil and criminal matters.
Raising capital is main issue to start a law firm; they can raise the needed capital through additional contributions from the existing equity partners or can go for loans
Law firms are structured by partners who are the joint owners of and business directors of the legal organization. There will be other staff too, like employees of clerical cadre who support the legal operations. Associates are seldom partners and if an associate wants to become a partner he will have to wait a long 11 years as to whether the associate makes a partner.
In the U.S complete bar to non lawyer ownership has been codified by the ABA. This is been crated to check the conflicts of interest because in the system of legal justice a lawyer has to be enthusiastic on behalf of the client and has duty not to charge a client exorbitantly. Being an officer of the court the lawyer has to be honest and abstain from filing frolicsome cases or raise
False defenses. Making partners is a very prestigious issue as the competition is so hectic from higher associates; such firms may come out with advertisements in publications to announce the partners. Usually the partners shared the profits keeping out the expenses incurred on paying salaries for the employees, cost of furnishing and money spent on books for references.
Many large law firms have opted for a two-tiered partnership with equity and non-equity partners. The non-equity partners are offered a fixed salary where as the equity partners share the profit and losses. Non-equity partners are permitted with limited voting rights in connection with the operational functions of the law firm.
Extinction from partnership
If a partner commits a crime, involves in misconduct, incapable of contributing to the profitability of the firm or manifest any signs of insanity the partner can be terminated. Certain firms has specifically mentioned a retirement age for the partners. This, in general is when you cross the age of 65.
In the U.S the job title for attorneys are ‘’counsel’’ the title has obtained a number of different classifications which certainly do not fit into partner-associate structure of traditional times. Some of the firms have independent contractor relationship with the counsel, the relationships are arranged to allow the experiences lawyers to distribute in their resources and brand name of the organization. The title ‘counsel’ is given to some retired partners to maintain a link with the firm. In certain cases ‘counsel’ means experienced and senor lawyers who have expertise in international law and practice. These senior lawyers are hired as independent contractors on a special assignment which may result in profit for the partnership.
Like in the case of other business reorganizations, merger and acquisitions happen in law firms too. The differences of opinion are sited as the prime reason.
The size of law firms can be small or huge, smaller firms focus on specific specialties of law like, defense, personal injury, labor law, patent law etc, but big law firms with so many specialized groups expand their client base and the market.
For lawyers, legal forms
are very important piece of document and for a new law firm, you can get all all legal forms free from internet. For example you can download the DA 31 form