Things to consider
– Considerations in selecting form of practice
- Taxation– get professional advice including on whether to begin as a solo and then incorporate; consider Section 85 of the Income Tax Act
- Liability – guarantor issues, including spouse/relatives
- Succession/dissolution
– Solo practice
– Partnership
– Professional corporation
- Articles of incorporation
- Shareholders, officers, chief operating officer
– Limited Liability Partnership
– Consult with CPA
– Specialized/General practice
– Partnership Agreement in writing
- Capital/equity from partners
- Withdrawal/retirement issues
- Compensation and profit distribution
- Each partner’s role in the practice (Managing partner, Rainmaker, etc.
- Establish a clear evaluation matrix and expectations)
Resources
Fuchs, Pablo (April 15, 2014) “How to decide on a business structure for your law firm” Canadian Bar Association (retrieved February 2, 2016)
Frazer, Joceyn and Nerino J. Petro Jr. (Jan/Feb 2014) “The GPSolo Guide to Opening a Law Office” American Bar Association (retrieved February 9, 2016) [requires ABA login]
Lockwood, Frank (Jan/Feb 2014) “Ten Things a Small Firm Owner Should Never Do” American Bar Association (retrieved February 9, 2016) [requires ABA login]