Forms of Practice

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)

Lockwood, Frank (Jan/Feb 2014) “Ten Things a Small Firm Owner Should Never Do” American Bar Association (retrieved February 9, 2016)