TBA Law Blog

TBA Law Blog

Solo in a Box Spotlight: The Business of Law

Posted by: Stacey Shrader Joslin on Jul 31, 2014
With more Tennessee attorneys – especially new lawyers – deciding to “hang out” their own shingle and begin a solo or small firm practice, the TBA has developed the Solo in a Box Toolkit. Each issue of E-DICT this year will spotlight one of the toolkit’s 12 sections. This month we look at the resources available for making two key business decisions.

Lawyers who open their own practice should remember they also are opening a small business, and will face many of the same challenges and requirements of any small business owner. In the “Business of Law” section, the Solo in a Box Toolkit addresses two key business decisions that need to be made before the attorney begins practicing law.

Choosing an Accountant – One of the first things a solo practioner should do is find a reputable accountant that can help navigate the initial set-up and ongoing business administration of the practice. An accountant also can help the attorney file a franchise and excise tax registration, get a certificate of registration, secure a local business license and obtain a federal Employer Identification Number (EIN). Finally, the accountant can help the lawyer set up a system for making quarterly income tax payments, which are required for all self-employed individuals.

Choosing a Business Entity – Another decision that should be made prior to beginning the practice of law is choosing and establishing the appropriate business structure. Different business entities have different tax consequences so it is important to make an informed decision. The most utilized structures for setting up a solo or small firm practice are:

  • Sole Proprietorship
  • General Partnership
  • Limited Partnership
  • Limited Liability Partnership
  • Professional Corporation
  • Limited Liability Company
  • Professional Limited Liability Company

The toolkit includes a description of each of these options, provides links to more information, and includes an overview of ethical considerations to be weighed when choosing a business entity. Read more about these two key business decisions

Up Next: Choosing Office Space

Law-Related Blogs AND PODCASTS

Check out other law-related blogs and podcasts generated from the Tennessee legal community or of interest to the Tennessee lawyers.