Structure of law firms Essay Example | Topics and Well Written Essays - 1750 words

Structure of law firms - Essay Example They view creeping commercialism as the root of the problem. â€Å"Law as a business? 7D-that is, a money-making trade-is seen as the antithesis of the public service ideal upon which the legal profession was founded. The idea that professionalism is grounded in public service has its roots deep in the history of Anglo-American law. In the distant past when the French speaking Norman kings dispensed justice to an Anglo-  Saxon populace, it was necessary for parties to be represented by someone who could speak the language of the court.  These representatives were inevitably nobles who served out of fealty to their king. For such early advocates, service rather than profit was the reason to assume this role. English barristers today do not accept a fee, but rather receive an â€Å"honorarium† in acknowledgement of this tradition of public service.1 However, ethical rules of the courts and bar associations form the fundamentals of practicing law in most American states. Cas e in point, the state of New York requires lawyers operating in the state to act in accordance to the New York Code of Professional Responsibility.2 1. Law firm structure in General By tradition, the organization of law firms is that of general partnerships. While a majority of law firms registers limited liability partnerships to shelter associates, or members, from explicit liability entirely or to a certain extent, the most fundamental organizational structure has been general partnership. The rise to partnership position in a law firm has been the biggest indicator of professional and personal success in law. In this case, â€Å"I have made partner† or â€Å"Making partner† are two phrases that occupy lawyers careers as they use it as a yardstick of success in private practice. In effect, lawyers draw a lot of satisfaction when referred as a partner, since the tag shows accomplishments in a lawyer’s private practice career. Thus, notwithstanding the all-too- common generational disparities, associates-the subordinate members- in law firms always desire to â€Å"make partners† in a law firm.3 In comparison to Saudi Arabia, lawyers in America have the capability of establishing professional organizations using an assortment of methods. According to an Ethics Opinion of the New York County Lawyers' Association, â€Å"A law firm may be structured as a professional corporation (PC), a limited liability company (LLC), or a limited liability partnership (LLP) without, by its structure alone, violating any ethical standard.†4 Conversely, the interpretation of Law Governing Lawyers states, â€Å"A lawyer may practice as a solo practitioner, as an employee of another lawyer or law firm, or as a member of a law firm constituted as a partnership, professional corporation, or similar entity.†5 In the comment of the restatement of Law Governing Lawyers, they mention that: A law firm established as a partnership is generally subje ct to partnership law with respect to questions concerning creation, operation, management, and dissolution of the firm. Originally, in order to achieve certain tax savings, law firms were permitted in most states to constitute themselves as professional corporations. Most such laws permitted that form to be elected even by solo practitioners or by one or more lawyers who, through their professional corporation, became partners in a law partnership. Pursuant to amendments to the partnership law in many states in the early 1990s, associated lawyers may