If you’re a new attorney or lawyer looking to start a new practice, you’re probably wondering, Are law offices viewed as corporations? Despite the fact that lawyers may be the primary owners of law firms, there are important differences between them and corporations. For starters, law firms can only be owned by attorneys. The remaining employees are not shareholders. Secondly, firms cannot raise funds through an initial public offering (IPO) on the stock market. Instead, they must raise money from additional equity partners or debt, which is usually secured by accounts receivable.
Corporate lawyers help clients create business entities. They draft articles of incorporation, which legally document the creation of a corporation and specify its internal management. The articles of incorporation are referred to as bylaws in most states. Corporations also deal with partnerships, limited liability companies, and business trusts. Each has its own legal rights and responsibilities. Corporate attorneys help clients determine which structure is best for their needs. Listed below are the different types of lawyers practicing in corporations.
In the past, many law firms operated like corporations. However, many large firms have moved to a partnership structure. Equity partners have ownership stakes in the firm, which allows them to share in the profits. Non-equity partners, on the other hand, are paid a fixed salary and given limited voting rights. The oldest continuing partnership in the United States is Cadwalader, Wickersham & Taft. Rawle & Henderson has been practicing law for over 400 years.