Corner Office: What Every Lawyer Should Know About the Economics of a Law Practice
Why do so many lawyers know so little about the economics of practicing their profession? Not surprisingly, it's because their law school education did not address any of the business aspects of practicing law. So most young lawyers join law firms with little understanding of how they operate and without a clue as to what it takes to make a law practice successful and profitable. Many lawyers, especially those who join large firms, manage never to master these concepts ' and in many cases work hard at avoiding them.
Highlights of Recently Enacted Tax Laws for Law Firms, Clients, Lawyers, and Staff
This article addresses two significant changes made by the Small Business and Work Opportunity Tax Act of 2007 ('Small Business Act') ' the new preparer penalty provisions (up to 50% of the fee for preparing the tax return), which have broad implications for attorneys who offer tax advice to their clients and the revised kiddie tax provisions, which now reach a substantially larger group of children. This article also details pertinent changes made by the Tax Relief and Health Care Act of 2006 ('TRHCA'), which extend the time for several tax cuts that had expired at the end of 2005, make certain tax breaks more beneficial, and provide greater flexibility regarding health savings accounts. Noteworthy new TRHCA provisions are highlighted that can benefit law firms and their clients, as well as individual attorneys and staff members and their families.
After 30 Years, Law Firm Advertising Is Slow to Change
In the early days of attorney advertising, law firms created ads to demonstrate their unparalleled integrity and resourcefulness. Some three decades later, law firms are creating ads to demonstrate their unparalleled integrity and resourcefulness. Although firms themselves have undergone profound changes since the U.S. Supreme Court decided 30 years ago this month that even lawyers were entitled to free speech, the profession's advertising manner and message ' especially among the larger firms ' have evolved very little in those 30 years, according to many industry observers.
The Practice Group
The popularity of the practice group ' an entity within a firm comprised of those who practice a specific area of law or serve a specific industry ' is well grounded, in that it opens a number of advantages to managing a practice and better serving clients. But so complex and management sensitive are practice groups that they open, as well, the easy propensity to misuse the practice group concept in a classic case of poor management canceling the value of a good concept.
The Place to Network: Innovative Networking Strategies for Women Attorneys
If pressed, undoubtedly any woman attorney could come up with a litany of reasons why she cannot be a rainmaker or proactive networker, ranging from responsibilities at home to discrimination or being underestimated in terms of capabilities by bosses or clients, both male and female. The good news is that rather than searching for excuses, many female lawyers are aggressively and successfully networking to develop their client rosters despite challenges they face.
Career Journal: Looking at Law-Firm Marketing Depts. in 2007
The first half of 2007 revealed some new trends in law-firm marketing, including structural shifts in departments that are yielding the addition of new job functions. This has made the quest for talent to fill these roles exceedingly difficult.
Ruling Signals Change in French Tax Treatment of LLP Distributions
Earlier this year, the French authorities signaled that a welcome change may be afoot in the tax treatment of distributions from UK LLPs under French law. (Most U.S. firms operate in France through the UK, unless they are grandfathered and in practice in France since the early 1990s.) This article discusses the scope of the ruling and its ramifications for UK firms considering a LLP conversion or those already in or contemplating alliances with French firms.
Unfunded Retirement Plans: An Ongoing Problem
During the past year, we witnessed a marked increase in the number of law firms, both large and small, which are finding that their existing unfunded retirement plans are becoming significant, disruptive forces. The underlying problem created by these plans is that the plans result in current income being diverted to former partners, thereby reducing the compensation of the remaining active partners. Today, the combination of an expected spike in retirements related to the baby boom generation and, for many firms, greatly increased benefit exposure due to sharp increases in firm profitability that is factored into the value of retiree benefits, stand ready to test the financial viability of even the strongest firms.
Case Management and Analysis
In the last few decades, 'going to trial' has lost its luster. Corporate counsel and business leaders have grown wary of the risk, expense and diversion of resources associated with trials. As plaintiff lawyers availed themselves of new theories of liability and liberal discovery, courts have grown congested and the road to verdict has grown longer. Trials have become synonymous within the business community with aberrant verdicts and wasteful expenditures of time and money.
Overcoming The Barriers to Organizational Change
When introducing new technologies or processes, managing the challenge of change requires a clear vision, ongoing two-way communication with the affected stakeholders and an understanding of people's levels of influence and commitment to the change. A law firm's culture can impede the adoption of new processes. When employees are accustomed to performing tasks in a certain way, you are bound to come up against some resistance if the new processes translate into a loss of their routines and comfort levels. Therefore, it is imperative that you get the appropriate people involved early in the planning to make sure they understand the new systems and processes ' and how the changes will affect them and the firm.
