ERRATUM
September 26, 2008
In an article that appeared in the September 2008 issue, <i>Measuring Realization to Improve Firm Profits</i> by K. Jennie Kinnevy, the author's biography was inadvertently omitted.
Unreasonable Compensation to PC Shareholders: The IRS Gains a Victory
September 26, 2008
The general view has been that unreasonable compensation claims against shareholder employees of professional corporations was not an issue. In <i>Pediatric Surgical Associates P.C. v. Commissioner</i>, the Tax Court determined that compensation paid to the shareholder physicians was unreasonably high because it exceeded the value of the services performed. Many law firm professional corporations could face this same issue.
Partner Care
September 26, 2008
In an ever-increasing competitive environment, it becomes more and more difficult for law firms to distinguish themselves from their competitors. A quick scan of some of the better-known firm Web sites shows that many firms often look and sound alike. However, it is the quality and caliber of the attorneys that set the firms apart. Saying you're distinctive is much easier than proving it to the marketplace, your partners and staff. One area in which your firm can build distinction and establish itself as a leader is Partner Care.
Section 79 Planning Opportunities
September 26, 2008
Closely held businesses produce over 50% of the Gross National Product ("GNP"). Less than 50% of these businesses have a continuation plan and almost one-third of these companies (29%) use a buy-sell arrangement to assist in their planning. Buy-Sell agreements are very simple tools that over the years have grown to meet increasing needs of closely held businesses.
The Financial State of the Automotive Industry
September 24, 2008
Despite all the recent media attention focused on bankruptcy concerns among the domestic three automakers, we do not anticipate any domestic OEM filing for bankruptcy protection. However, we anticipate increased bankruptcy activity within the supplier base in the latter part of 2008 and into 2009.
The Registration Experience: Six Easy Lessons from the Converted
August 28, 2008
If you have registered a few dozen Uniform Franchise Offering Circulars ("UFOCs") and spent the better part of 2008 converting your current stable to the Amended Rule's disclosure format, you can probably relate to the throbbing headache we experienced during this spring's annual filing season when we registered our clients' freshly converted franchise disclosure documents ("FDDs") with state franchise agencies. Before the annual spring filing crunch, we had found clear sailing in registering FDDs early.'
Establishing Best Practices
August 28, 2008
When it comes to work product production, internal and external communication, or workplace safety, the question becomes: "Is there adequate input when these policies are developed, and who are the enforcers?" As important, is the question, "Do established best practices hamper client relations or staff professional development?"
Realization ' Another View
August 27, 2008
For many managing partners, the practice of law is easy compared with the challenges associated with "realization": an 11-letter word that is the bane of all managing partners everywhere. And 100% realization? Well, that's the Holy Grail of law firm management. Given the choice of winning a Supreme Court case or solving the riddle of meeting their firm's realization goals, many managing partners might just tell the Chief Justices to take a hike.
Measuring Realization to Improve Firm Profits
August 27, 2008
Last month, we reviewed how to tailor a scorecard to your individual firm's goals. This month we review a very important financial metric. In creating a partner scorecard and setting individual partner goals, Realization should be at the top of the list.
