Optimizing Retirement Plans for Law Firms
January 01, 2004
Part One of this article compared some hybrid retirement plans (combinations of defined contribution and defined benefit plans) that are potentially desirable for law firms. In Part Two, we provide spreadsheet analyses to illustrate the benefits of these plans and to reconcile them with nondiscrimination criteria of the Internal Revenue Code and of the Age Discrimination in Employment Act (ADEA).
News Briefs
January 01, 2004
Highlights of the lastest franchising news from around the country.
Tax Shelters: Avoidance or Evasion?
January 01, 2004
Recent hearings of a subcommittee of the Senate Committee Governmental Affairs have again focused a harsh spotlight on the abusive use of tax shelters. As if to stress the point, On Dec. 29, 2003, the Treasury Department proposed changes to Circular 230 that "set high standards for the tax advisors and firms that provide opinions supporting tax-motivated transactions."
Enron Versus Wall Street
December 01, 2003
In late September 2003, Enron Corp. and Enron North America Corp. sued more than 40 banks and financial institution defendants for knowingly participating with insiders of Enron in a "multi-year scheme to manipulate and misstate Enron's financial condition." Complaint at '1.
Study: Forget the 'Blockbusters'
December 01, 2003
A study whose results were reported December 8 asserts that the pharmaceutical industry's "blockbuster" approach to developing new drugs is no longer viable in today's marketplace.
A Personal and Professional Marketing Plan for New Partners
December 01, 2003
The congratulatory letters and well wishers have come and gone and the honeymoon is over. Now it's time to assume the role of partnership. For some this will be a simple transition; for others it becomes on ongoing challenge. Associate life is basically akin to rankings in the military ' private, corporal, sergeant, lieutenant. Partnership is akin to making the move up through the ranks to captain, major, colonel or general. Along the way things change. Expectations are different and even if as an associate an individual has been doing his or her fair share of marketing, now you are an owner and more than ever, you need create your own personal and professional marketing plan.
A Look Back and A Look Forward
December 01, 2003
Four months ago when I was asked to become Editor-in-Chief of <i>Marketing The Law Firm</i>, I never imagined that I would have the opportunity to engage a wonderful group of authors; select an outstanding Board of Editors; and moderate the first of what I hope will be many exciting and interesting Web audio seminars. As I look back on the last four months, I think the one thing that stands out in my mind is the fact that we had so many wonderful contributors to the newsletter. So I thought that we might take a look at the last 4 months and some of the highlights. Although I would love to be able to select all of the articles we've published, given the constraints of space, I am only able to pick two from each issue to feature. In case you missed reading these issues, we'll give you a nutshell version of these articles. I would also be remiss if I didn't say how much I appreciated the efforts of Russ Lawson and Mike O'Horo, whose monthly columns provided all of us with a look at the intricacies of marketing both in a law firm setting and to smaller firms and solos. And as we look forward, we'll take a look at what's coming up and a preview of our editorial calendar.
Should Your Firm Keep Two -- or More -- Sets of Books?
December 01, 2003
Most law firms operate as general partnerships, limited liability partnerships or limited liability companies (together, "partnerships", whose members having capital in the firm herein are "partners"). Does your partnership keep two sets of books ' or more? Al Capone kept two sets of books, and the judge sent him to the Federal Pen for doing so. Yet many law firms (and other professional businesses) legally keep two or more sets of books, arising from different accounting systems prescribed by 1) their partnership Agreements; 2) generally accepted accounting principles (GAAP) audited statements (which are required by some lenders and landlords), and 3) the tax laws. As a result, the firm's net assets ' and the partners' ownership of the law firm, as reflected in the partners' capital accounts ' may be substantially different under each set of books. Moreover, the amount and timing of the firm's cash distributions to partners, the amount of the partners' annual income taxes, and the availability and amount of bank loans to the firm may all be affected by the firm's applicable accounting methods ' all items that may substantially affect the partners' pocketbooks.
Pennie to Close Doors by End of December
December 01, 2003
Intellectual property boutique Pennie & Edmonds will ring in the New Year by closing its doors and firing some of its lawyers and staff. Ahead of a likely announcement of a deal for many ' but not all ' Pennie & Edmonds lawyers to join the New York office of Jones Day, Pennie & Edmonds' management informed associates and staff members Monday that the 190-lawyer firm will cease practicing law and wind up affairs by Dec. 31.
