Many lawyers end up working in law firms rather than in their own private practice. What exactly is a law firm, though, and how do they work? This video will explain the basic structure of law firms, partnerships, and alternative models.
Law firms sell legal services to clients. Like any other business, they can sell directly to other businesses (B2B), or they can sell to the consumer (B2C). They provide advice on complex legal contracts. They will also handle the creation of contracts and other business deals. They are now offering more support through outsourced legal management, high-volume work, and more!
Most law firms are structured around partnerships. Partners are the most senior members of their law firm with the most experience and expertise. They join together and each hold a stake in the firm. Sometimes they are referred to as equity partners because of their shareholder agreement.
Once a lawyer is a partner, they have a say in the way the firm operates. They are also entitled to left over profits at the end of the year. Some law firms have their partners sell their equity on the stock market.
For more information, check out the video above.