For legal services businesses

In most states, lawyers must form a PLLC (Professional Limited Liability Company) or PC (Professional Corporation) - not a regular LLC. PLLC ownership is restricted to licensed attorneys. A few states (CA notably) require Professional Corporation specifically and don't allow PLLC for law practice. File.Business handles state-specific entity formation for law firms.

Legal services are generally NOT subject to sales tax in most states. A few states (DE, HI, NM, SD, WV) tax most professional services including legal. Some states tax specific legal services differently (e.g., paralegal services may be taxed; attorney services exempt). Multi-state firms need to track each state's rules.

Required: separate trust account (IOLTA - Interest On Lawyer Trust Accounts) for client funds, with strict banking + reporting compliance. Trust account violations are the #1 source of state bar disciplinary actions. Firms must maintain IOLTA bank statements, client ledgers, and three-way reconciliation monthly. File.Business connects law firms with IOLTA-compliant banking partners.

Required in most states (CA, OR, ID, NV require disclosure of coverage; some bars require minimum coverage). Standard: $1M per claim / $1M aggregate; higher for litigation specialties. Costs vary by practice area (transactional = lower; PI litigation = higher) and claim history. Tail coverage required when changing firms or retiring.

Generally NO. Most states prohibit non-lawyers from holding equity in a law firm (Rule 5.4 of state bar rules). Arizona (since 2020) and Utah (since 2020) have piloted programs allowing alternative business structures with non-lawyer ownership. Other states prohibit. File.Business helps law firms structure operations within state bar ethics rules.