Law Firms Angling To Pay Less Tax Under New Law

Written shortly after the new tax bill was signed into law by President Trump, this article looks at strategies that major law firms in Philadelphia are considering in response. What they are contemplating is germane to any firm, but in particular to those that are classified as partnerships. Some unusual moves are under consideration, including, according to one source, “spinning off associate attorneys in law firms into a separate entity,” where they would become “partners in their own partnership.”  Another source explains why the new law will clearly benefit one particular subset of lawyers – solos – and in particular those who aren’t making a ton of money.