Vickie, Wendy, and Xena are attorneys interested in starting a law practice together in their state. The
Question:
Vickie, Wendy, and Xena are attorneys interested in starting a law practice together in their state. The three are friends who have graduated from law school and passed their state's bar exam within the past two years. Each can make a maximum capital contribution of $20,000 by borrowing from supportive parents or other family members at a reasonable interest rate with a payback period of at least ten years. None of them has any significant assets beyond their training and license to practice law and each intends to carry a minimum of $1,000,000 malpractice insurance. Based on these facts, answer the following questions.
A. What form of business organization would you recommend for the venture?
B. If the friends opt to start as a traditional general partnership, may they convert it to an LLP or PLLP if their state recognizes both forms of business organization?
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave