Preparing for Partnership
A Guide to Achieving Partnership in a Law Firm
1st Edition
Published on 14. September 2023
Book
Paperback/Softback
160 pages
978-1-78742-985-7 (ISBN)
Description
Becoming a partner in a law firm is a significant milestone in a lawyer's career, and requires a combination of strong legal skills, business acumen, leadership abilities and a commitment to the firm's success. Preparing for Partnership reviews the essential steps that lawyers need to take to make partnership a reality.
This book outlines the critical factors for success, from building a strong track record to developing a loyal client base, demonstrating leadership skills and meeting the firm's criteria. Contributors to the book discuss how to network and build relationships within the firm, review the financial aspects of partnership, and how to seek feedback and mentorship from other partners.
Preparing for Partnership is an invaluable resource for lawyers seeking to achieve the ultimate career milestone of partnership, and for team leaders and management as they help aspiring partners to prepare. This book will help lawyers navigate the complex path to partnership and realize their full potential in the legal profession.
This book outlines the critical factors for success, from building a strong track record to developing a loyal client base, demonstrating leadership skills and meeting the firm's criteria. Contributors to the book discuss how to network and build relationships within the firm, review the financial aspects of partnership, and how to seek feedback and mentorship from other partners.
Preparing for Partnership is an invaluable resource for lawyers seeking to achieve the ultimate career milestone of partnership, and for team leaders and management as they help aspiring partners to prepare. This book will help lawyers navigate the complex path to partnership and realize their full potential in the legal profession.
More details
Language
English
Place of publication
London
United Kingdom
Target group
Professional and scholarly
Product notice
Paperback (trade)
Unsewn / adhesive bound
Dimensions
Height: 234 mm
Width: 156 mm
Thickness: 10 mm
Weight
262 gr
ISBN-13
978-1-78742-985-7 (9781787429857)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Additional editions
Michael Roster | David J. Parnell | Jennifer Bluestein
Preparing for Partnership
A Guide to Achieving Partnership in a Law Firm
E-Book
09/2023
1st Edition
Globe Law and Business
€127.99
Available for download
Michael Roster | David J. Parnell | Jennifer Bluestein
Preparing for Partnership
A Guide to Achieving Partnership in a Law Firm
E-Book
09/2023
1st Edition
Globe Law and Business
€127.99
Available for download
Persons
By Michael Roster; David J Parnell; Jennifer Bluestein and Pippa Blakemore
Content
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Chapter 1: What does "partner" even mean? . . . . . . . . . . . . . . . . . . . . . . . . 1
By Michael Roster, former managing partner, Morrison & Foerster's Los Angeles office
Some economic factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Doing excellent legal work matters - a lot . . . . . . . . . . . . . . . . . . . . . . 4
Time to partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Your clients are both outside and inside the firm . . . . . . . . . . . . . . . . 7
Some personal factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
In conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Chapter 2: So you want to make partner?
Evaluating your firm's partnership prospects . . . . . . . . . . . . . . . . . . . . . . . . 9
By David Parnell, founder of True North Partner Placement
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Assumptions / disclaimers / expectations / axioms . . . . . . . . . . . . . . 11
Evaluate your readiness first . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Evaluate your firm's readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Your competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Associate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Chapter 3: Demonstrating readiness for partnership . . . . . . . . . . . . . . . . . 33
By Jennifer Bluestein, chief talent and HR officer, Perkins Coie
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Being a great lawyer - excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Have a brand or specialty that sets you apart . . . . . . . . . . . . . . . . . . 34
Self-sustaining network within the firm . . . . . . . . . . . . . . . . . . . . . . . . 35
Understand the business and where you fit in . . . . . . . . . . . . . . . . . . 36
Create a business plan that aligns with the firm's strategy and platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Generating a book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Developing a team, including a lieutenant . . . . . . . . . . . . . . . . . . . . . 40
Firm citizenship - what does it mean and why demonstrate it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Chapter 4: Making the choice about partnership . . . . . . . . . . . . . . . . . . . . 43
By Claire Rason, director, Client Talk
Why we must remember it's a choice . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Gender imparity at partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
The impact of choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Is it about when we have to make a choice? . . . . . . . . . . . . . . . . . . . 47
The confidence factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Common concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
The fear of business development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Authentic leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Juggling other commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
"It didn't look like fun" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Getting to gender parity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Implications for diversity initiatives more broadly . . . . . . . . . . . . . . 54
Chapter 5: The business and personal traits of a partner . . . . . . . . . . . . . 57
By Pippa Blakemore, The PEP Partnership LLP
Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Management and business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Personal traits of a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Chapter 6: Relationships are (the) key to a successful and fulfilled career . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
By Paul Williams, managing partner, Denver office, Shook Hardy & Bacon
Where do relationships begin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
The cultivation of relationships - mutual respect . . . . . . . . . . . . . . . 73
The power and privilege of relationships . . . . . . . . . . . . . . . . . . . . . . . 75
Tending to avoid mending relationships . . . . . . . . . . . . . . . . . . . . . . . 76
It's not too late to identify and build relationships . . . . . . . . . . . . . 78
Chapter 7: The importance of relationships - the seven pillars of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
By Pippa Blakemore, The PEP Partnership LLP
Understanding the importance of strong relationships . . . . . . . . . 81
Knowing with whom you should build and maintain durable relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
The mindset that lawyers need to progress from associate to partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Principles of nurturing relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Where to relationship-build to strengthen your future when you become a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Appropriate communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
How to turn these contacts into a loyal client base and a strong book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Chapter 8: Business development for the aspiring partner . . . . . . . . . . . . 95
By Tom Bird, bestselling business author, trainer and keynote speaker
The context of BD for an associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
What clients want over and above the work - the starting point for any BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Key priorities for associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
What is the "right" kind of relationship to build? . . . . . . . . . . . . . . . . 102
The role of goal-setting in BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Chapter 9: Financial management 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
By Tony Young, partner, and Hung Tran, partner, BDO Business Services
Understanding the drivers of the firm . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Impact of structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Due diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Firm-wide governance and discipline . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Correct management of working capital . . . . . . . . . . . . . . . . . . . . . . . 115
Distribution management and policies . . . . . . . . . . . . . . . . . . . . . . . . 116
Growth prospects and succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Preparation begets success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Chapter 10: The practicalities and realities of financial management as a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
By Nicky Owen, partner, professional practices team, Crowe UK LLP
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Legal background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Reward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Statutory accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Partnership accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Management accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Partners' accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Management information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Demystifying the finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Chapter 11: Tax and accounting as a partner . . . . . . . . . . . . . . . . . . . . . . . 133
By Nicky Owen, partner, professional practices team, Crowe UK LLP
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
How will you be taxed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
A partner in a UK LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Salaried member rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Non-UK LLPs and other types of partnerships . . . . . . . . . . . . . . . . . . 135
Tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
National Insurance Contributions (NIC) . . . . . . . . . . . . . . . . . . . . . . . 136
How you will be assessed for income tax . . . . . . . . . . . . . . . . . . . . . . . 136
What are the taxable profits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Late paid tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Tax reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
International matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Pension contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Chapter 12: Wellbeing and partnership in law firms - challenges and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
By Jean-Baptiste Lebelle, head of HR, Allen & Overy
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Wellbeing - a continuing challenge for partners in a complex and moving environment . . . . . . . . . . . . . . . . . . . . . . . . 149
Resources and strategies for partner wellbeing . . . . . . . . . . . . . . . . . 152
Wellbeing requires a holistic and multidimensional approach with concrete initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
About Globe Law and Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Chapter 1: What does "partner" even mean? . . . . . . . . . . . . . . . . . . . . . . . . 1
By Michael Roster, former managing partner, Morrison & Foerster's Los Angeles office
Some economic factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Doing excellent legal work matters - a lot . . . . . . . . . . . . . . . . . . . . . . 4
Time to partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Your clients are both outside and inside the firm . . . . . . . . . . . . . . . . 7
Some personal factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
In conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Chapter 2: So you want to make partner?
Evaluating your firm's partnership prospects . . . . . . . . . . . . . . . . . . . . . . . . 9
By David Parnell, founder of True North Partner Placement
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Assumptions / disclaimers / expectations / axioms . . . . . . . . . . . . . . 11
Evaluate your readiness first . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Evaluate your firm's readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Your competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Associate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Chapter 3: Demonstrating readiness for partnership . . . . . . . . . . . . . . . . . 33
By Jennifer Bluestein, chief talent and HR officer, Perkins Coie
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Being a great lawyer - excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Have a brand or specialty that sets you apart . . . . . . . . . . . . . . . . . . 34
Self-sustaining network within the firm . . . . . . . . . . . . . . . . . . . . . . . . 35
Understand the business and where you fit in . . . . . . . . . . . . . . . . . . 36
Create a business plan that aligns with the firm's strategy and platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Generating a book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Developing a team, including a lieutenant . . . . . . . . . . . . . . . . . . . . . 40
Firm citizenship - what does it mean and why demonstrate it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Chapter 4: Making the choice about partnership . . . . . . . . . . . . . . . . . . . . 43
By Claire Rason, director, Client Talk
Why we must remember it's a choice . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Gender imparity at partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
The impact of choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Is it about when we have to make a choice? . . . . . . . . . . . . . . . . . . . 47
The confidence factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Common concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
The fear of business development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Authentic leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Juggling other commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
"It didn't look like fun" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Getting to gender parity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Implications for diversity initiatives more broadly . . . . . . . . . . . . . . 54
Chapter 5: The business and personal traits of a partner . . . . . . . . . . . . . 57
By Pippa Blakemore, The PEP Partnership LLP
Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Management and business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Personal traits of a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Chapter 6: Relationships are (the) key to a successful and fulfilled career . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
By Paul Williams, managing partner, Denver office, Shook Hardy & Bacon
Where do relationships begin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
The cultivation of relationships - mutual respect . . . . . . . . . . . . . . . 73
The power and privilege of relationships . . . . . . . . . . . . . . . . . . . . . . . 75
Tending to avoid mending relationships . . . . . . . . . . . . . . . . . . . . . . . 76
It's not too late to identify and build relationships . . . . . . . . . . . . . 78
Chapter 7: The importance of relationships - the seven pillars of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
By Pippa Blakemore, The PEP Partnership LLP
Understanding the importance of strong relationships . . . . . . . . . 81
Knowing with whom you should build and maintain durable relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
The mindset that lawyers need to progress from associate to partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Principles of nurturing relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Where to relationship-build to strengthen your future when you become a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Appropriate communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
How to turn these contacts into a loyal client base and a strong book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Chapter 8: Business development for the aspiring partner . . . . . . . . . . . . 95
By Tom Bird, bestselling business author, trainer and keynote speaker
The context of BD for an associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
What clients want over and above the work - the starting point for any BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Key priorities for associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
What is the "right" kind of relationship to build? . . . . . . . . . . . . . . . . 102
The role of goal-setting in BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Chapter 9: Financial management 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
By Tony Young, partner, and Hung Tran, partner, BDO Business Services
Understanding the drivers of the firm . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Impact of structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Due diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Firm-wide governance and discipline . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Correct management of working capital . . . . . . . . . . . . . . . . . . . . . . . 115
Distribution management and policies . . . . . . . . . . . . . . . . . . . . . . . . 116
Growth prospects and succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Preparation begets success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Chapter 10: The practicalities and realities of financial management as a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
By Nicky Owen, partner, professional practices team, Crowe UK LLP
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Legal background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Reward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Statutory accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Partnership accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Management accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Partners' accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Management information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Demystifying the finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Chapter 11: Tax and accounting as a partner . . . . . . . . . . . . . . . . . . . . . . . 133
By Nicky Owen, partner, professional practices team, Crowe UK LLP
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
How will you be taxed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
A partner in a UK LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Salaried member rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Non-UK LLPs and other types of partnerships . . . . . . . . . . . . . . . . . . 135
Tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
National Insurance Contributions (NIC) . . . . . . . . . . . . . . . . . . . . . . . 136
How you will be assessed for income tax . . . . . . . . . . . . . . . . . . . . . . . 136
What are the taxable profits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Late paid tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Tax reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
International matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Pension contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Chapter 12: Wellbeing and partnership in law firms - challenges and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
By Jean-Baptiste Lebelle, head of HR, Allen & Overy
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Wellbeing - a continuing challenge for partners in a complex and moving environment . . . . . . . . . . . . . . . . . . . . . . . . 149
Resources and strategies for partner wellbeing . . . . . . . . . . . . . . . . . 152
Wellbeing requires a holistic and multidimensional approach with concrete initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
About Globe Law and Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159