Jim Devine writes: >> Being partner involves owning part of a firm, but I don't know if >> lawyers or doctors have to make actual financial contributions to >> become partners in their firms. (I'd like to know, if anyone is an >> expert on this.) If they don't have to make financial contributions to >> become partners, it's pretty much the same as tenure. You earn the >> partnership/tenure via "hard work" (as defined by those who already >> have partnership/tenure and perhaps hired managers).
New partners have to make "capital contributions." However, they are structured so the new lawyer never goes out of pocket. Instead, compensation that the new partner otherwise would have received is instead distributed to the existing partners. There are messy accounting issues that can arise when partnerships dissolve or partners are asked to leave and the firm's capital has to be allocated among the partners. David Shemano _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
