Partnership Planning: Considering Partnership

• Published date: 20 February 2024
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Employment and HR, Tax, Financial Services, Corporate and Company Law, Retirement, Superannuation & Pensions, Employee Benefits & Compensation, National Insurance
• Law Firm: Buzzacott
• Author: Jessica Beere

Stepping up to partner comes with a variety of benefits and risks, as with any big career decision. It's important to assess the shift in your role, responsibilities and expectations, and be prepared enter into a new world of work being self-employed.

Becoming a partner for many solicitors working in a partnership, can be seen as the pinnacle of their legal career, opening doors to increased reward and recognition, entering the world of self-employment and enjoying the benefits that come with it. However, becoming a partner comes with varying risks and rewards that you should consider before stepping up. It ultimately boils down to your circumstances and attitude to risk.

Does partnership align with your career goals and ambitions?

It's imperative to reflect on your long-term career goals and whether a partnership aligns with your aspirations. Consider whether you're looking for the increased responsibility, leadership opportunities as well as the potential financial rewards of being a partner.

Does partnership align with your current skill set?

Partners are often expected to contribute to the firm's growth by bringing in new clients and generating revenue. This requires partners to build networks of referrers who will feed the pipeline with new work.

It's important to look at your ability and interest in business development and maintaining client relationships before taking the plunge, as this will be a key focus for you as a partner.

Have you considered the financial implications?

One of the challenges new partners face is how they will be paid. In stepping up to partner, you may shift from being an employee and earning a salary to being self-employed and owning a stake in the firm. This shift has a direct and immediate impact on how you are paid, how your pension works and how your tax liabilities are paid, making your financial and working worlds more...