Monday, February 23, 2015

Starting a law firm? Which business entity should you choose?

This article (from the lawyerist) summarizes reasons why different business models should be chosen by lawyers starting a new firm.

For any business, one of the primary benefits of utilizing an entity is to limit your potential liability for debts of the business. For this reason, any analysis for a business begins with the question of liability insulation.

For lawyers, we are of course concerned about debts a firm may incur, and typical entity liability rules will apply to regular bills such as those owed to vendors. So if your law firm is an LLC and the LLC owes a document reproduction company, the company can only recover from the LLC.

It also applies to other small businesses, however. If you're looking to start a new business -- or you already have a business and wonder if your business model is correct -- contact me for a consultation. 

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