Keith Mack
The idea of non-lawyer ownership of law firms is gaining traction in the United States, but Florida has been resistant to this change. The Florida Bar and Florida Supreme Court have rejected non-attorney ownership, and Florida lawyers must be admitted to the Florida Bar to practice in the state. However, Florida does provide the opportunity for Florida Bar members to join or establish an interstate law firm, as long as they comply with the Rules of Professional Conduct and the requirements outlined in Savitt to minimize potential ethics violations and legal risks.
| Characteristics | Values |
|---|---|
| Can a non-lawyer own a law firm in Florida? | No. The Florida Bar and Florida Supreme Court have rejected non-attorney ownership. |
| Can a law firm in Florida operate as an LLC? | Yes, but it must comply with the naming requirements set forth by the Division of Corporations. |
| Can a law firm in Florida operate as a PLLC? | Yes, but it must comply with the naming requirements set forth by the Division of Corporations. |
| Can a law firm in Florida operate as a PA? | Yes, but it must use the words "chartered," "professional association," or "P.A." in their business name, or register their business name as a fictitious name with the Division of Corporations. |
| Can a Florida law firm be part of an interstate law firm? | Yes, but it must comply with the Rules of Professional Conduct and the requirements outlined in Savitt to minimize potential ethics violations and legal risks. |
| Can an out-of-state law firm open an office in Florida? | No, an out-of-state firm is not permitted to simply open an office in Florida. |
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What You'll Learn
Interstate law firms in Florida
Florida lawyers are often approached by out-of-state lawyers who are looking to establish a presence in the Florida market. While interstate law firms may provide a multitude of career opportunities for Florida attorneys, creating such a firm involves more than simply opening offices in multiple states. Florida Bar members are governed by rules designed to ensure ethical conduct and safeguard client interests.
An out-of-state firm is not permitted to simply open an office in Florida. The Florida Bar vs Savitt, which involved an out-of-state attorney practicing law in Florida without being properly admitted, serves as a cautionary tale and provides guidelines for establishing an interstate law firm in Florida. Savitt held that an interstate law firm partnership is only permitted if it constitutes a "full, bona fide partnership that operates according to a partnership agreement which does not provide that profits and losses are shared among its members solely on the basis of the proportionate business either generated or handled."
The Florida office of an interstate partnership must be operated by a partner who is a member of The Florida Bar and who assumes responsibility on a continuing basis for the supervision of all lawyers and non-lawyer personnel in the Florida office. The firm may use its existing firm name in Florida although no lawyer in the firm name is a member of The Florida Bar. Law lists and legal directories of the Florida office will list only individual lawyers admitted to practice law in Florida. Professional announcements emanating solely from the Florida office will be made only as to matters involving members of The Florida Bar. Letterheads used by the Florida office will list its partners admitted in Florida and may list its associates admitted in Florida. If names of non-Florida lawyers are listed, the letterhead must contain an express statement indicating those individual lawyers who are members of The Florida Bar, or, in the alternative, those who are not members.
While Florida provides the opportunity for Florida Bar members to join or establish an interstate law firm, attorneys do not have carte blanche to work in a multijurisdictional firm. Compliance with the Rules of Professional Conduct and the requirements outlined in Savitt is essential for successfully operating such a firm and minimizing potential ethics violations and legal risks. Above all, the primary objective is to protect the clients’ interests and preserve the integrity of the legal profession.
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The Florida Bar's Rules of Professional Conduct
The Florida Bar has established a set of Rules of Professional Conduct to uphold ethical standards and protect the interests of clients in the state's legal profession. These rules are designed to maintain the integrity of the legal profession and ensure that attorneys adhere to their ethical responsibilities.
One of the key objectives of The Florida Bar is to safeguard client interests and ensure ethical conduct among its members. This includes providing guidance and regulations for Florida Bar members who are part of interstate law firms or seeking to establish a presence in the state. The Florida Bar vs. Savitt, for example, set a precedent that an interstate law firm partnership must be a "full, bona fide partnership" with a shared partnership agreement, and the Florida office must be operated by a partner who is a member of The Florida Bar.
Additionally, The Florida Bar has rules regarding the use of firm names and lawyer listings in Florida. A law firm may use its existing firm name in Florida, even if no lawyer in the firm is a member of The Florida Bar. However, law lists and legal directories in the Florida office should only include lawyers admitted to practice in Florida, unless an express statement indicates which lawyers are members of The Florida Bar.
The Florida Bar also addresses the issue of non-lawyer ownership of law firms. Rule 5.4, adopted by state bars, generally prohibits non-lawyer ownership of legal practices to prevent non-compliance with professional conduct rules and protect attorney-client confidentiality. While there is a growing recognition that non-lawyer ownership may not be detrimental, The Florida Bar, along with the Florida Supreme Court, has firmly rejected non-attorney ownership.
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Non-lawyer ownership of law firms
The concept of non-lawyer ownership of law firms is a polarizing topic that has been gaining traction in the United States in recent years. While the default rule in U.S. jurisdictions has traditionally been that only lawyers may own or manage legal practices, a growing number of states are re-examining this stance and exploring the potential benefits of non-lawyer ownership.
The arguments in favor of non-lawyer ownership include increased access to capital and innovation, as well as greater public access to legal services at more affordable rates. Proponents of this change highlight the success of non-attorney-owned legal practices in other countries and suggest that non-lawyer ownership could enhance competition and innovation in the legal industry. Additionally, it would allow law firms to expand their services and provide comprehensive solutions to their clients.
However, there are also valid concerns about the potential drawbacks of non-lawyer ownership. One of the primary objections is the possibility that non-lawyer owners, who are not bound by the same professional conduct rules as attorneys, may prioritize profits over delivering high-quality legal services and upholding ethical duties. Protecting attorney-client confidentiality is another critical consideration, as non-lawyer owners would have access to sensitive client information.
Despite the growing momentum for change, most jurisdictions in the United States have not yet embraced non-lawyer ownership of law firms. Notably, Florida has explicitly rejected this idea, with the Florida Bar Board of Governors and the Florida Supreme Court opposing amendments to Rule 5.4 that would have permitted minority ownership by non-lawyer firm employees.
As of 2020, Arizona and Utah have taken the lead in this area by implementing significant reforms that allow and regulate non-lawyer investment and ownership in law firms. Arizona eliminated Rule 5.4, creating a licensing requirement for Alternative Business Structures (ABSs) that can be partially owned by non-lawyers but must include at least one lawyer as compliance counsel. Utah, on the other hand, established a regulatory "sandbox" to oversee non-traditional firms with non-lawyer ownership, including both traditional law firms and non-lawyer-owned entities employing lawyers.
While the trend towards non-lawyer ownership of law firms is gaining momentum, it is still in its early stages, and the majority of states, including Florida, continue to adhere to the traditional model of lawyer ownership to maintain ethical standards and protect client interests.
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Registering a law firm in Florida
Understand the Legal Landscape
Before starting your law firm in Florida, it is crucial to have a solid understanding of the local legal system, rules, and regulations. Familiarize yourself with the ethical guidelines and professional conduct expectations set by The Florida Bar. This knowledge will ensure your firm adheres to legal requirements and protects your clients' interests.
Choose a Business Structure
Decide on the appropriate corporate structure for your law firm. Consider whether you want to work solo, in a partnership, or with a team of attorneys. This decision will impact the registration process and your day-to-day operations.
Select a Business Name
Choose a name that represents your brand and effectively conveys the services you offer. Ensure that your chosen name is unique and available for registration. Trademark your business name to protect your intellectual property rights.
Register Your Business
Register your law firm with the Florida Department of State. You may also need to register with the IRS and the Florida Department of Revenue, especially if you have employees or need to collect and remit taxes. Additionally, check if you need to obtain any specific licenses or permits, such as a professional license or a certificate of authority, to operate a law firm in Florida.
Comply with The Florida Bar Requirements
To practice law in Florida, attorneys must be admitted to The Florida Bar. Ensure that the lawyers in your firm meet the necessary qualifications and adhere to the Rules of Professional Conduct outlined by The Florida Bar.
Understand Interstate Law Firm Requirements
If you plan to establish an interstate law firm with a presence in multiple states, including Florida, carefully navigate the requirements. The Florida Bar provides guidelines and resources to help you understand the ethical landscape of operating an interstate law firm.
Open a Business Bank Account
Set up a separate bank account specifically for your law firm. This account will be used for all financial transactions related to your business, helping you maintain proper financial records and accounting practices.
Starting a law firm in Florida requires a strong understanding of the legal landscape and careful planning. By following the steps outlined above, you can establish a solid foundation for your law firm and ensure compliance with the necessary regulations.
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Converting a PLLC to a PA
In Florida, law firms can be structured as professional service corporations or professional limited liability companies (PLLCs). A professional service corporation must use the words "chartered," "professional association," or "P.A." in its business name. On the other hand, a PLLC is a type of limited liability company whose members are licensed professionals in a particular field.
- Review the PLLC's structure and business operations: Before initiating the conversion process, it is essential to thoroughly review the PLLC's structure, business operations, and reasons for moving to a PA. This review will help identify any potential issues or adjustments needed to comply with the requirements for a PA.
- Prepare the necessary documentation: The conversion process requires preparing and submitting specific documents to the state. These documents typically include the Articles of Conversion, which outline the details of the conversion, and any other state-specific forms.
- Submit the Articles of Conversion and other required documents: Once the necessary documents are prepared, they must be submitted to the Florida Department of State, Division of Corporations. This can usually be done by mail, and there may be associated fees, as outlined by FL Stat § 607.1113.
- Update business name and branding: When converting from a PLLC to a PA, the business name will need to include the designated terms for a professional service corporation, such as "chartered," "professional association," or "P.A." Ensure that all branding and marketing materials reflect this change.
- Comply with professional licensing requirements: Both PLLCs and PAs have licensing requirements. Ensure that all professionals within the firm hold the necessary licenses to provide legal services in Florida.
- Maintain compliance with state laws and regulations: It is crucial to stay up to date with any laws, regulations, or ethical standards that govern the operation of PAs in Florida. These may differ from the requirements for PLLCs, so ongoing compliance should be a priority.
It is important to note that the conversion process may vary slightly depending on the specific circumstances of the law firm. Seeking guidance from legal professionals or consulting with the Florida Department of State can help ensure a smooth and compliant transition from a PLLC to a PA.
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Frequently asked questions
No, the Florida Bar and Florida Supreme Court have rejected non-attorney ownership.
Yes, a Florida law firm can operate as a limited liability company (LLC).
Yes, lawyers in Florida may practice law in the form of general partnerships or limited liability partnerships. However, an interstate law firm partnership is only permitted if it is a "full, bona fide partnership" that operates according to a partnership agreement.
Compliance with the Rules of Professional Conduct and the requirements outlined in Savitt is essential for successfully operating an interstate law firm in Florida.
