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A law firm is a business entity formed by one or more lawyers to engage in the
practice of law In its most general sense, the practice of law involves giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits, and is applied to the profes ...
. The primary service rendered by a law firm is to advise clients (individuals or
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
s) about their legal
rights Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people according to some legal system, social convention, or ethical theory ...
and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought.


Arrangements

Law firms are organized in a variety of ways, depending on the jurisdiction in which the firm practices. Common arrangements include: *
Sole proprietorship A sole proprietorship, also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sol ...
, in which the attorney ''is'' the law firm and is responsible for all profit, loss and liability; * General partnership, in which all the attorneys who are members of the firm share ownership, profits and liabilities; * Professional corporations, which issue stock to the attorneys in a fashion similar to that of a business corporation; *
Limited liability company A limited liability company (LLC for short) is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability ...
, in which the attorney-owners are called "members" but are not directly liable to third party creditors of the law firm (prohibited as against public policy in many jurisdictions but allowed in others in the form of a "Professional Limited Liability Company" or "PLLC"); *
Professional association A professional association (also called a professional body, professional organization, or professional society) usually seeks to further a particular profession, the interests of individuals and organisations engaged in that profession, and t ...
, which operates similarly to a professional corporation or a limited liability company; *
Limited liability partnership A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not ...
(LLP), in which the attorney-owners are partners with one another, but no partner is liable to any creditor of the law firm nor is any partner liable for any negligence on the part of any other partner. The LLP is taxed as a partnership while enjoying the liability protection of a corporation.


Restrictions on ownership interests

In many countries, including the United States, there is a rule that only lawyers may have an ownership interest in, or be managers of, a law firm. Thus, law firms cannot quickly raise
capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used fo ...
through
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
s on the stock market, like most
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
s. They must either raise capital through additional capital contributions from existing or additional equity partners, or must take on debt, usually in the form of a line of credit secured by their accounts receivable. In the United States this complete bar to nonlawyer ownership has been codified by the
American Bar Association The American Bar Association (ABA) is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. Founded in 1878, the ABA's most important stated activities are the setting of aca ...
as paragraph (d) of Rule 5.4 of the Model Rules of Professional Conduct and has been adopted in one form or another in all U.S. jurisdictions, except the District of Columbia. However, D.C.'s rule is narrowly tailored to allow equity ownership only by those nonlawyer partners who actively assist the firm's lawyers in providing legal services, and does not allow for the sale of ownership shares to mere passive nonlawyer investors. The U.K. had a similar rule barring nonlawyer ownership, but under reforms implemented by the Legal Services Act of 2007 law firms have been able to take on a limited number of non-lawyer partners and lawyers have been allowed to enter into a wide variety of business relationships with non-lawyers and non-lawyer owned businesses. This has allowed, for example, grocery stores, banks and community organizations to hire lawyers to provide in-store and online basic legal services to customers. The rule is controversial. It is justified by many in the legal profession, notably the American Bar Association which rejected a proposal to change the rule in its Ethics 20/20 reforms, as necessary to prevent conflicts of interest. In the adversarial system of justice, a lawyer has a duty to be a zealous and loyal advocate on behalf of the client, and also has a duty to not bill the client excessively. Also, as an officer of the court, a lawyer has a duty to be honest and to not file frivolous cases or raise frivolous defenses. Many in the legal profession believe that a lawyer working as a shareholder-employee of a publicly traded law firm might be tempted to evaluate decisions in terms of their effect on the stock price and the shareholders, which would directly conflict with the lawyer's duties to the client and to the courts. Critics of the rule, however, believe that it is an inappropriate way of protecting clients' interests and that it severely limits the potential for the innovation of less costly and higher quality legal services that could benefit both ordinary consumers and businesses.


Multinational law firms

Law firms operating in multiple countries often have complex structures involving multiple partnerships, particularly in jurisdictions such as Hong Kong and Japan which restrict partnerships between local and foreign lawyers. One structure largely unique to large multinational law firms is the Swiss Verein, pioneered by Baker McKenzie in 2004 or a
GRATA International
in which multiple national or regional partnerships form an association in which they share branding, administrative functions and various operating costs, but maintain separate revenue pools and often separate partner compensation structures. Other multinational law firms operate as single worldwide partnerships, such as British or American limited liability partnerships, in which partners also participate in local operating entities in various countries as required by local regulations.


Financial indicators

Three financial statistics are typically used to measure and rank law firms' performance: * Profits per equity partner (PPEP or PPP): Net operating income divided by number of equity partners. High PPP is often correlated with prestige of a firm and its attractiveness to potential equity partners. However, the indicator is prone to manipulation by re-classifying less profitable partners as non-equity partners. * Revenue per lawyer (RPL): Gross revenue divided by number of lawyers. This statistic shows the revenue-generating ability of the firm's lawyers in general, but does not factor in the firm's expenses such as associate compensation and office overhead. * Average compensation of partners (ACP): Total amount paid to equity and nonequity partners (i.e., net operating income plus nonequity partner compensation) divided by the total number of equity and nonequity partners. This results in a more inclusive statistic than PPP, but remains prone to manipulation by changing expense policies and re-classifying less profitable partners as associates.


Structure and promotion


Partnership

Law firms are typically organized around partners, who are joint owners and business directors of the legal operation; associates, who are
employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ot ...
s of the firm with the prospect of becoming partners; and a variety of staff employees, providing paralegal, clerical, and other support services. An associate may have to wait as long as 11 years before the decision is made as to whether the associate is made a partner. Many law firms have an " up or out policy", integral to the Cravath System, which had been pioneered during the early 20th century by partner Paul Cravath of
Cravath, Swaine & Moore Cravath, Swaine & Moore LLP (known as Cravath) is an American white-shoe law firm with its headquarters in New York City, and an additional office in London. The firm is known for its complex and high profile litigation and mergers & acquisit ...
, and became widely adopted by, particularly,
white-shoe firm A white-shoe firm is an American term used to describe prestigious professional services firms that have traditionally been associated with the upper-class elite who graduated from Ivy League colleges. The term is most often used to describe lead ...
s; associates who do not make partner are required to resign, and may join another firm, become a solo practitioner, work in-house for a corporate legal department, or change professions. Burnout rates are notably high in the profession. Making partner is very prestigious at large or mid-sized firms, due to the competition that naturally results from higher associate-to-partner ratios. Such firms may take out advertisements in professional publications to announce who has made partner. Traditionally, partners shared directly in the profits of the firm, after paying salaried employees, the landlord, and the usual costs of furniture, office supplies, and books for the law library (or a database subscription). Partners in a
limited liability partnership A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not ...
can largely operate autonomously with regard to cultivating new business and servicing existing clients within their book of business. Partner compensation methods vary greatly among law firms. At major United States law firms, the "compensation spread" (ratio between the highest partner salary and lowest partner salary) among firms disclosing information ranges from 3:1 to 24:1. Higher spreads are intended to promote individual performance, while lower spreads are intended to promote teamwork and collegiality. Many large law firms have moved to a two-tiered partnership model, with equity and non-equity partners. Equity partners are considered to have ownership stakes in the firm, and share in the profits (and losses) of the firm. Non-equity partners are generally paid a fixed salary (albeit much higher than associates), and they are often granted certain limited voting rights with respect to firm operations. The oldest continuing partnership in the United States is that of Cadwalader, Wickersham & Taft, founded in 1792, in
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. The oldest law firm in continuous practice in the United States is Rawle & Henderson, founded in 1783, in
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
.


Termination of one's partnership

It is rare for a partner to be forced out by fellow partners, although that can happen if the partner commits a crime or malpractice, experiences disruptive mental illness, or is not contributing to the firm's overall profitability. However, some large firms have written into their partnership agreement a forced retirement age for partners, which can be anywhere from age 65 on up. In contrast, most corporate executives are at much higher risk of being fired, even when the underlying cause is not directly their fault, such as a drop in the company's stock price. Worldwide, partner retirement ages can be difficult to estimate and often vary widely, particularly because in many countries it is illegal to mandate a retirement age.


"Of counsel" role

In the United States, Canada and Japan, many large and midsize firms have attorneys with the job title of "counsel", "special counsel" or " of counsel." As the
Supreme Court of California The Supreme Court of California is the Supreme court, highest and final court of appeals in the judiciary of California, courts of the U.S. state of California. It is headquartered in San Francisco at the Earl Warren Building, but it regularly h ...
has noted, the title has acquired several related but distinct definitions which do not easily fit into the traditional partner-associate structure. These attorneys are people who work for the firm, like associates, although some firms have an
independent contractor Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ...
relationship with their counsel. But unlike associates, and more like partners, they generally have their own clients, manage their own cases, and supervise associates. These relationships are structured to allow more senior attorneys to share in the resources and "brand name" of the firm without being a part of management or profit sharing decisions. The title is often seen among former associates who do not make partner, or who are laterally recruited to other firms, or who work as in-house counsel and then return to the big firm environment. At some firms, the title "of counsel" is given to retired partners who maintain ties to the firm. Sometimes "of counsel" refers to senior or experienced attorneys, such as foreign legal consultants, with specialized experience in particular aspects of law and practice. They are hired as independent contractors by large firms as a special arrangement, which may lead to profitable results for the partnership. In certain situations "of counsel" could be considered to be a transitional status in the firm.


Mergers and acquisitions between law firms

Mergers, acquisitions, division and reorganizations occur between law firms as in other businesses. The specific books of business and specialization of attorneys as well as the professional ethical structures surrounding conflict of interest can lead to firms splitting up to pursue different clients or practices, or merging or recruiting experienced attorneys to acquire new clients or practice areas. Results often vary between firms experiencing such transitions. Firms that gain new practice areas or departments through recruiting or mergers that are more complex and demanding (and typically more profitable) may see the focus, organization and resources of the firm shift dramatically towards those new departments. Conversely, firms may be merged among experienced attorneys as partners for purposes of shared financing and resources, while the different departments and practice areas within the new firm retain a significant degree of autonomy. Law firm mergers tend to be assortative, in that only law firms operating in similar legal systems are likely to merge. For example, U.S. firms will often merge with English law firms, or law firms from other common law jurisdictions. A notable exception is King & Wood Mallesons, a multinational law firm that is the result of a merger between an Australian law firm and a Chinese law firm. Though mergers are more common among better economies, slowing down a bit during recessions, big firms sometimes use mergers as a strategy to boost revenue during a recession. Nevertheless, data from Altman Weil indicates that only four firms merged in the first half of 2013, as compared to eight in the same period in 2012, and this was taken by them as indicating a dip in morale regarding the legal economy and the amount of demand.


Size

Law firms can vary widely in size. The smallest law firms are lawyers practicing alone, who form the vast majority of lawyers in nearly all countries. Smaller firms tend to focus on particular specialties of the law (e.g. patent law,
labor law Labour laws (also known as labor laws or employment laws) are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee ...
,
tax law Tax law or revenue law is an area of legal study in which public or sanctioned authorities, such as federal, state and municipal governments (as in the case of the US) use a body of rules and procedures (laws) to assess and collect taxes in a ...
, criminal defense, personal injury); larger firms may be composed of several specialized practice groups, allowing the firm to diversify its client base and market, and to offer a variety of services to their clients. Large law firms usually have separate litigation and transactional departments. The transactional department advises clients and handles transactional legal work, such as drafting contracts, handling necessary legal applications and filings, and evaluating and ensuring compliance with relevant law; while the litigation department represents clients in court and handles necessary matters (such as discovery and motions filed with the court) throughout the process of litigation.


Anglo-American development


Boutique law firms

Lawyers in small cities and towns may still have old-fashioned general practices, but most urban lawyers tend to be highly specialized due to the overwhelming complexity of the law today. Thus, some small firms in the cities specialize in practicing only one kind of law (like
employment Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any o ...
,
antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...
,
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...
, investment funds,
telecommunications Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that ...
or aviation) and are called boutique law firms.


Virtual Law Firms

A 21st Century development has been the appearance of the virtual law firm, a firm with a virtual business address but no brick & mortar office location open to the public, using modern telecommunications to operate from remote locations and provide its services to international clients, avoiding the costs of maintaining a physical premises with lower overheads than traditional law firms. This lower cost structure allows virtual law firms to bill clients on a contingency basis rather than by billable hours paid in advance by retainer. Related innovations include alternative legal services provider (ALSP),
legal outsourcing Legal outsourcing, also known as legal process outsourcing (LPO), refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company (LPO provider). When the LPO provide ...
and what is sometimes called "NewLaw". The largest law firms have more than lawyers. These firms, often colloquially called "megafirms" or "
biglaw A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to ...
", generally have offices on several continents, bill US$750 per hour or higher, and have a high ratio of support staff per attorney. Because of the localized and regional nature of firms, the relative size of a firm varies.


NewLaw

NewLaw was devised as a term in 2013 by consultant Eric Chin. NewLaw has been defined as “any model, process, or tool that represents a significantly different approach to the creation or provision of legal services than what the legal profession traditionally has employed”. For example, NewLaw ALSP models may include secondment firms, law and business advice companies, virtual online legal models, and innovative law firms and companies.


"Full service" firms

The largest firms like to call themselves "
BigLaw A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to ...
" firms because they have sections specializing on each category of legal work, which in the U.S. usually means
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...
transactions, banking, and certain types of high-stakes corporate litigation. These firms rarely do plaintiffs' personal injury work. However the largest law firms are not very large compared to other major businesses (or even other professional services firms). In 2008, the largest law firm in the world was the British firm
Clifford Chance Clifford Chance LLP is an international law firm headquartered in London, United Kingdom, and a member of the " Magic Circle", a group of London-based multinational law firms. It ranks as one of top ten largest law firms in the world measured ...
, which had revenue of over US$2 billion. In 2020, Kirkland & Ellis came out on top with US$4.15 billion in revenue while
Hogan Lovells Hogan Lovells is an American-British law firm co-headquartered in London and Washington, DC. The firm was formed in 2010 by the merger of the American law firm Hogan & Hartson and the British law firm Lovells. It employs about 2,400 lawyers ...
rounded out the list at number ten with US$2.25 billion, with Clifford Chance remains the only British firm among the top 10 Biglaw. This can be compared with $404 billion for the world's largest firm by turnover
ExxonMobil ExxonMobil Corporation (commonly shortened to Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 3 ...
and $28 billion for the largest professional services firm
Deloitte Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of professio ...
.


Worldwide

The largest law firms (known as the "
BigLaw A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to ...
") in the world are headquartered primarily in the United Kingdom and the United States. However, large firms of more than 1,000 lawyers are also found in Australia (
MinterEllison MinterEllison is a multinational law firm, and professional services firm, based in Australia. The firm has fifteen offices and operates in five countries. By number of lawyers it is the largest law firm in Australia. History MinterEllison is ...
, 1,500 attorneys), China (Dacheng, 2,100 attorneys) and Spain (Garrigues, 2,100 attorneys). The American system of licensing attorneys on a state-by-state basis, the tradition of having a headquarters in a single U.S. state and a close focus on profits per partner (as opposed to sheer scale) has to date limited the size of most American law firms. Thus, whilst the most profitable law firms in the world remain in New York, four of the six largest firms in the world are based in London in the United Kingdom. But the huge size of the United States results in a larger number of large firms overall – a 2003 paper noted that the United States alone had 901 law firms with more than 50 lawyers, while there were only 58 such firms in Canada, 44 in Great Britain, 14 in France, and 9 in Germany. There is an increasing tendency towards globalisation of law firms. Due to their size, the U.S.- and U.K.-based law firms are the most prestigious and powerful in the world, and they tend to dominate the international market for legal services. A 2007 research paper noted that firms from other countries merely pick up their leftovers: " ch of the competition is relatively orderly whereby predominantly Australian, New Zealand, and Canadian firms compete for business not required by English or American law firms."


Recession

As a result of the U.S. recession in 2008 and 2009 many U.S. law firms have downsized staff considerably, and some have closed. The ''
Denver Post ''The Denver Post'' is a daily newspaper and website published in Denver, Colorado. As of June 2022, it has an average print circulation of 57,265. In 2016, its website received roughly six million monthly unique visitors generating more than 1 ...
'' reported that major law firms have cut more than 10,000 jobs nationwide in 2009. On February 12, 2009, Bloomberg reported that 700 jobs were cut that one day at law firms across the country. Among the firms closed included Heller Ehrman, a San Francisco-based firm established in 1890 and Halliwells of the UK. Among those that survived, law firm layoffs became so common that trade publications like American Lawyer produced an ongoing “Layoff List” of the law firms nationwide that cut jobs.


Salaries

Law firm salary structures typically depend on firm size. Small-firm salaries vary widely within countries and from one country to the next, and are not often publicly available. Because most countries do not have unified legal professions, there are often significant disparities in income among the various legal professions within a particular country. Finally, the availability of salary data also depends upon the existence of journalists and sociologists able to collect and analyze such data.


United States

The U.S. is presently the only country with enough lawyers, as well as journalists and sociologists who specialize in studying them, to have widely available data on salary structures at major law firms. In 2006, median salaries of new graduates ranged from US$50,000 per year in small firms (two to ten attorneys) to US$160,000 per year in very large firms (more than 501 attorneys). The distribution of these salaries was highly bimodal, with the majority of new lawyers earning at either the high end or the low end of the scale, and a median salary of US$62,000. In the summer of 2016, New York law firm
Cravath, Swaine & Moore Cravath, Swaine & Moore LLP (known as Cravath) is an American white-shoe law firm with its headquarters in New York City, and an additional office in London. The firm is known for its complex and high profile litigation and mergers & acquisit ...
raised its first-year associate salary to $180,000. Many other high-end New York-based and large national law firms soon followed. Two years later, in the summer of 2018, New York law firm
Milbank Milbank LLP (commonly known as Milbank) is an international law firm headquartered in New York City. It also has offices in Washington, D.C., Los Angeles, London, Frankfurt, Munich, Tokyo, Hong Kong, São Paulo, Seoul, Singapore, and Beijing. ...
raised its first-year associate salary to $190,000, with other major firms following shortly thereafter. In 2022 Milbank increased first-year compensation to $215,000, with most comparable firms following suit. The traditional salary model for law firm associates is lockstep compensation, in which associate salaries go up by a fixed amount each year from the associate's law school graduation. However, many firms have switched to a level-based compensation system, in which associates are divided into three (or sometimes four) levels based on skills mastered. In 2013, the median salaries for the three associate levels were $152,500, $185,000 and $216,000 among large firms (more than 700 lawyers), and $122,000, $143,500 and $160,000 among all firms. Some prominent law firms, like Goodwin Procter and
Paul Hastings Paul Hastings LLP is a global law firm that represents a client base in finance, M&A, private equity, and litigation. The firm specializes in white collar and government disputes, energy, infrastructure, and intellectual property. Paul Hastin ...
, give generous signing bonuses (e.g., $20k) to incoming first-year associates who hold JD/MBA degrees. Another way law firm associates increase their earnings or improve their employment conditions is through a lateral move to another law firm. A 2014 survey by
LexisNexis LexisNexis is a part of the RELX corporation that sells data analytics products and various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper search, and consumer info ...
indicated that over 95% of law firms consulted intended to hire lateral attorneys within the next two years. Though the success for both the attorney and the law firms in lateral hiring has been questioned. The National Law Review reported that the cost of recruiting, compensating, and integrating a lateral attorney can be upwards of $600,000 and that 60% of lateral attorney hires fail to thrive at their new law firms.


United Kingdom

British firms typically practise lockstep compensation. In
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, entry-level solicitor salaries (NQ - Newly Qualified) are typically: (i) £40,000-70,000 at boutique and national firms, (ii) £80,000-100,000 at magic circle firms, and (iii) £120,000-£155,000 at London offices of leading US firms. A senior associate with six years' experience may make £68,000-120,000 at a national firm or upwards of £160,000 at a global firm. Salary levels are lower in areas outside London.


Australia

Australia has regional variation in lawyer salaries, with the highest salary levels in
Sydney Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mounta ...
, followed by
Melbourne Melbourne ( ; Boonwurrung/ Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a metro ...
,
Perth Perth is the capital and largest city of the Australian state of Western Australia. It is the fourth most populous city in Australia and Oceania, with a population of 2.1 million (80% of the state) living in Greater Perth in 2020. Perth is ...
,
Brisbane Brisbane ( ) is the capital and most populous city of the Australian state of Queensland, and the third-most populous city in Australia and Oceania, with a population of approximately 2.6 million. Brisbane lies at the centre of the South ...
, then
Adelaide Adelaide ( ) is the capital city of South Australia, the state's largest city and the fifth-most populous city in Australia. "Adelaide" may refer to either Greater Adelaide (including the Adelaide Hills) or the Adelaide city centre. The dem ...
. Salaries vary between top-tier, mid-size, and small firms. At top-tier firms in Sydney, salaries of lawyers who have been admitted to practice range from $75,000 to $92,000 and partners make on average $1,215,000. In Sydney, mid-tier starting salaries for admitted lawyers range from between $65,000 and $82,000 Most Australian lawyers are not admitted until ten months into their time at their law firm, since the initial period involves supervised legal training before admission is granted. Typically in Australian firms lawyers are in a lock-step system for the first two years of practice, following which pay increases are dependent on performance assessed, in large measure, by satisfaction of billable hour targets.


Hong Kong

Newly qualified associates at leading firms in Hong Kong typically make HK$840,000 to HK$948,000, with partners in the HK$1.6 million to HK$4 million+ range; many firms pay New York salaries with cost of living adjustments.


Singapore

At local firms in Singapore, associates in their first three years typically make $60,000 to $100,000, while midlevel (4–7 years) associates make $110,000 to $180,000 and senior (8+ years) associates make $160,000 or more. International firms pay significantly more, with senior associates often making more than $250,000.


India

There is more information available for entry level associates. First-year lawyers earn anywhere between INR 8,000 to INR 1,10,000 per month. Tier 1 law firms provide the best pay package, of about INR 15,00,000 annually. There is wide difference in the salary range depends on the city, law firm, and university of the candidate. The salary is higher in cities like Mumbai and Delhi as opposed to other cities like Kolkata, Benaras, Pune, Ahmedabad, etc.


Location

Most law firms are located in office buildings of various sizes, ranging from modest one-story buildings to some of the tallest
skyscraper A skyscraper is a tall continuously habitable building having multiple floors. Modern sources currently define skyscrapers as being at least or in height, though there is no universally accepted definition. Skyscrapers are very tall high-ri ...
s in the world (though only in 2004,
Paul Hastings Paul Hastings LLP is a global law firm that represents a client base in finance, M&A, private equity, and litigation. The firm specializes in white collar and government disputes, energy, infrastructure, and intellectual property. Paul Hastin ...
was the first firm to put its name on a skyscraper). In late 2001, it was widely publicized that John C. Dearie's personal injury plaintiffs' firm in the state of New York has been experimenting with bus-sized "mobile law offices." The firm insists that it does not " chase ambulances". It claims that a law office on wheels is more convenient for personal injury plaintiffs, who are often recovering from severe injuries and thus find it difficult to travel far from their homes for an intake interview.


Rankings

Law firms are ranked both objectively, such as by
revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive rev ...
, profits per partner, and subjectively, by various legal publishers and journalists. As legal practice is adversarial, law firm rankings are widely relied on by prospective associates, lateral hires and legal clients. Subjective rankings typically cover practice areas such as The American Lawyer's Corporate Scorecard and Top IP Firms. Work place rankings are directed toward lawyers or law students, and cover such topics as quality of life, hours, family friendliness and salaries. Finally,
statistical Statistics (from German: '' Statistik'', "description of a state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industr ...
rankings generally cover profit-related data such as profits per partner and revenue per lawyer. Third party attorney ranking services such as Chambers and Partners and Martindale-Hubbell are generally very competitive and can help raise an individual attorney's professional profile, and to catch this marketing advantage, over 1,200 attorney ranking and or awards have sprung up in the U.S. Various state bar associations have taken notice of the prolific growth of attorney honor awards and have determined that lawyers may refer to such honors in advertising �
only when the basis for comparison can be verified” and the organization providing the award “has made adequate inquiry into the fitness of the individual lawyer.
�� In an October 2007 press conference reported in ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' and ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', the law student group Building a Better Legal Profession released its first annual ranking of top law firms by average billable hours, ''
pro bono ( en, 'for the public good'), usually shortened to , is a Latin phrase for professional work undertaken voluntarily and without payment. In the United States, the term typically refers to provision of legal services by legal professionals for pe ...
'' participation, and demographic diversity. Most notably, the report ranked the percentages of women, African-Americans, Hispanics,
Asian-Americans Asian Americans are Americans of Asian ancestry (including naturalized Americans who are immigrants from specific regions in Asia and descendants of such immigrants). Although this term had historically been used for all the indigenous peopl ...
, and gays & lesbians at America's top law firms. The group has sent the information to top law schools around the country, encouraging students to take this demographic data into account when choosing where to work after graduation. As more students choose where to work based on the firms' diversity rankings, firms face an increasing market pressure in order to attract top recruits.


In popular culture

A number of
television Television, sometimes shortened to TV, is a telecommunication medium for transmitting moving images and sound. The term can refer to a television set, or the medium of television transmission. Television is a mass medium for advertising, ...
shows, movies and books have revolved around relationships occurring in fictional law firms, highlighting both public fascination with and misperception of the lives of lawyers in high-powered settings. One popular American legal drama television series is called '' Suits''. There is one popular American dramedy, also known as,
comedy drama Comedy drama, also known by the portmanteau ''dramedy'', is a genre of dramatic works that combines elements of comedy and drama. The modern, scripted-television examples tend to have more humorous bits than simple comic relief seen in a typical ...
called ''
Boston Legal ''Boston Legal'' is an American legal drama and comedy drama television series created by former lawyer and Boston native David E. Kelley, produced in association with 20th Century Fox Television for ABC. The series aired from October 3, 200 ...
'' which was created by David E. Kelley and produced in association with 20th Century Fox Television for ABC. It is a spin-off of another long running Kelley series, ''
The Practice ''The Practice'' is an American legal drama television series created by David E. Kelley centering on partners and associates at a Boston law firm. The show ran for eight seasons on ABC, from March 4, 1997, to May 16, 2004. It won an Emmy ...
'', following the exploits of former character Alan Shore at the legal firm of Crane, Poole & Schmidt. One famous legal movie is called ''
The Firm The FIRM (stylized as The FIRM) is a brand of exercise videos and equipment currently owned by Gaiam. The original "The FIRM" videos are best known for popularizing a hybrid of aerobic exercise and weight training. History In 1979, Anna Ben ...
'', which was adapted from a book written by John Grisham. The television series '' Better Call Saul'' features several fictional law firms.


See also

*
List of largest law firms by revenue This is a list of the world's largest law firms by revenue, using data from fiscal year 2019. Firms marked with "(verein)" are structured as a Swiss association A Swiss association ("''Verein''" in German, "association" in French, "associazione" ...
* List of largest law firms by profits per partner * Book of business (law) * Law firm network * Multidisciplinary professional services networks *
White shoe firm A white-shoe firm is an American term used to describe prestigious professional services firms that have traditionally been associated with the upper-class elite who graduated from Ivy League colleges. The term is most often used to describe leadi ...


References


External links


Different types of law firm in the UK
{{DEFAULTSORT:Law Firm Practice of law Legal entities Legal organizations Knowledge firms