Easy Ways of Forming a Legal Partnership
There are several benefits prompting mid-sized and small-sized legal firms to agree to enter into partnership with other like-minded legal firms. First and foremost, effective legal partnerships are easy to run at optimum efficiency. Better still, legal partnership offers an excellent solution to reducing tax liability, since partnership law firms aren’t subject to double taxation that most independent legal firms face. But forming a legal partnership firm is complicated. Actually, legal partnership firms are vulnerable to risks attributed to any partnership structure. If you intend to enter a partnership with other like-minded legal firms, you definitely have to be knowledgeable and follow due process on how to form a partnership. Here are easy ways of forming a legal partnership firm.
Select your legal partners wisely
You should be able to see why a particular law firm is worth building a partnership with. Before entering into legal business with any legal firm, you have to evaluate what value they are really bringing to the table. The prospective partners need to have connections, vital experience and financial resources needed for successfully running a profitable law firm. Again, the prospective partner shouldn’t have any criminal record. Having the wrong partner can inevitably sink your legal firm. Simply put, select your prospective partners wisely.
After picking your legal partners, make sure you settle any necessary agreements with them. Ensure you discuss specific responsibilities and roles of every partner before signing the legal partnership agreement. Agree on the percentage of ongoing profits that each partner will get. You also have to understand what other legal partners you want to enter into partnership expect from you. Similarly, make them understand what you also expect from them as well. Settling agreements before signing a legal partnership agreement helps all partners understand how compatible they are with each other, which is crucial for establishing an effective legal partnership.
Pick an appropriate name
Choosing an appropriate name for your legal partnership practice is something every partner who has signed a legal agreement should take part in. After all, your legal partnership business shouldn’t have a similar name to another legal practice. You can advise your fellow legal partners to perform a quick search on the web to get ideas on a suitable name for your legal partnership business. Also ask them to conform with their state’s legal department whether the name they have come up with is already taken.
Draw a legal partnership agreement
Once you have finalized the final details of your legal partnership, get other partners so that you can draw a partnership agreement that suits each partner. Even if you have already made up your mind on working with a single partner, always make sure all terms and conditions are clearly put down on writing. All partners should ensure their best interests are clearly put down in writing.
Forming a legal partnership can set your legal practice up for success, especially if you want to transition from a small-sized legal firm into a trademark law firm whose legal services are highly sought after. As such, think of forming an effective legal partnership with like-minded legal partners.