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So your firm is thriving and excited to announce partner promotions. Congratulations!
After years of hard work and sacrifices, your top associates have made it to owner status. While focusing on the responsibilities of being a new owner and taking care of clients' affairs, the last thing on a new law firm partner's or shareholder's mind may be how this promotion will affect his or her personal taxes; that is, until mid-March rolls around. By that time it may be too late to take the sting out of any resulting tax surprises. This article addresses the key items a newly promoted law firm owner should know regarding his or her changed individual tax situation. Understanding how one's tax status has been altered can assist in a smooth transition from being solely an employee to being both an employee and owner of the enterprise.
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