Author(s): Nicholas Wright
Publication date: Dec 2009
With the introduction of Alternative Business Structures and with most partnerships converting to LLP status to remain competitive, now may be the time to start considering the benefits of conversion for your own firm.
The conversion process can be a challenging one with wide-reaching implications. But a successful LLP conversion can provide the ideal opportunity to review your core business operations, allowing you to plan positive change and growth in an increasingly competitive and changing market.
This report on LLP Conversion for Law Firms provides a highly practical, step-by-step guide specifically taking into account the unique considerations that are raised by today's economy and evolving legal marketplace. It highlights the key questions that need to be asked during the preparation and transition stages, as well as how to deal with the complications that may arise after conversion has taken place.
Key topics covered include:
- Converting from a partnership to an LLP - key considerations and trends;
- Advantages and disadvantages of converting from a partnership to an LLP;
- Preparatory work and practical issues involved;
- The default provisions and their drawbacks;
- Tailoring the LLP agreement to reflect the needs of your firm;
- Transferring the existing partnership business into the LLP - key issues and contractual obligations;
- The general tax treatment of limited liability partnerships - possible complications that may arise after the conversion and how they might be handled;
- Management and technical resources involved in the conversion - Is outsourcing an option?
- The implications of the Legal Services Act 2007 and the introduction of Alternative Business Structures.
LLP Conversion for Law Firms includes valuable behind-the-scenes access to existing LLPs and the common pitfalls and successes they encountered through the conversion process. In addition, you will also find a precedent for an LLP agreement within the Appendix.