Particularly in solo and small law practices, income growth typically is irregular and for the most part slow in the first year of practice. Before you decide to go solo or join a new practice, do some financial planning and consider these three tips.
The following is a guest blog post by Jeremy M. Evans, Managing Attorney at California Sports Lawyer, representing sports and entertainment professionals in contract drafting, negotiations, licensing, and career growth.
“Those who never try or quit too early end up working for those who tried and never quit.” True in any business and life in general, even more so in the solo practice of law—going solo requires you to step out and charge ahead.
Updated 2/2/18: Under new IRC §199A, owners of passthrough entities including a law practice organized as a partnership or professional corporation may deduct 20 percent of qualified business income, excluding reasonable compensation for the business owner. No deduction is allowed for passthrough income from personal services, including legal services, and the deduction is limited to 50 percent of wages paid to employees, but these limitations are phased in above an individual income threshold ($157,500 for single taxpayers, $315,000 for married taxpayers filing jointly). Taxpayers below the income threshold may deduct 20 percent of law practice income derived from the services of paralegals, associates, and other employees.
You’ve decided to open your own law office and are ready for your clients’ cases, but are you also ready to handle the tax issues that go hand-in-hand with running your own business?
Whether you’re straight out of law school, considering leaving a large firm, or making a life-style decision, a solo or small firm practice is an appealing prospect for many attorneys. But going solo can be daunting. One of the first decisions you have to make is what practice areas you will cover: Should you generalize or specialize?
The following is a guest blog post by Benjamin Scott. Ben is a solo estate planning attorney, a graduate of Concord Law School, a former high school physics teacher, and a father of three.
“A good plan violently executed now is better than a perfect plan executed next week.” -General George S. Patton.
What would have happened if General Patton sat down in the North African desert and refused to move because he was afraid of making mistakes? Although good lawyers should always try to avoid mistakes, a lawyer who is constantly paralyzed by the fear of mistakes will never become competent.