On 10 February 2017, the Newcastle Law Society ran a CPD seminar focusing on tax, super and legal practice. Kym Butler, principal of Butlers Business & Law, presented on structuring professional practices. As a lawyer and Chartered Accountant, Kym is highly experienced in structuring professional practices. Click here to read his biography page.
Gone are the days when professional practices were restricted to the traditional partnership structure. Regulatory changes in most professions have allowed professionals to choose from a wide range of practice structures. It is important that principals choose the right structure which suits the goals and needs of the practice and the principal lawyers. Choosing a professional practice structure is not just a decision principals make when they initially set up the practice. The structure must be continuously reviewed to ensure that it is tax effective and maximises asset protection. For principals in existing practices, the challenge becomes how to move out of one structure into another with minimal transaction costs.
If you missed the Law Society seminar, you can download our paper for free.