Quote:
Originally posted by redheaded stepkid
I'm not sure if this board gets much substantive play, but I am casting a wide net for info......
I'm a first year at Ohio BIGlaw and while it may be a little early to have partnership questions, I like to be prepared (and as tax time approaches I am doing a little long-term economic plannin).
When someone becomes a partner at a biglaw firm, what is the typical buy-in? Is it a flat sum? Percentage? What is the basis? Physical assets plus some calculated revenue valuation? Is it all due upon election to partnership or is it a graduated buy-in over time? Is the buy-in tax deductible as a business expense?
thanks.
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Lots of questions. Don't believe that you are going to get a lot of good answers. I think that your situation will depend on your firm. More specifically, does the firm have a two or three tiered partnership. If your firm does have non-equity/equity then I will assume that this will affect the amount of the buy-in for the initial level. In addition, when there is the big hit (single tier or step 2 at multi-tier) then there is (I believe) usually some type of buy-in period. As for your tax questions, no idea. I'm just a labor lawyer.
I must respect your early planning. You are definitely trying to be prepared.
aV
