Although firms have only been able to register as limited liability partnerships (LLP) since April 2001 there are now 5,800 such partnerships (or thereabouts) registered in the UK. Despite this high number there are relatively few law firms currently practising through the medium of an LLP. According to the Law Society, 48 firms had converted to LLP by December last year, and that figure has virtually doubled this year.
The recent high profile conversions of, for example, Mayer Brown Rowe & Maw, Wragge & Co and Withers suggests conversion is proving to be a key issue for law firms. Indeed, for any new practice looking to set up, LLP must be the obvious route; the firm limits liability from day one and avoids many of the risks of partnership. But what are the current issues facing firms that are considering the leap to limited liability?
