To the attorneys out there (again!)

Obviously, there's only so much that reading code and statutes can tell you. It's the real-world experience that matters most.

Thoroughly frustrated with the job market for new attorneys in CA, I've finally decided with conviction to start my own firm. I'm fortunate enough that the two friends I trust and respect most with respect to their character and work ethic, not to mention their raw intelligence, have both indicated that they want to join me. To say I'm honored is an understatement.

So I'm in the process of throwing together this small firm with one (and most likely two) of these friends of mine.

I was originally going to go with an LLP, but it seems that an LLP requires insurance liability of at least $1,000,000 whereas a PC requires only $100,000 per partner. Insofar as liability protection, they both seem to be the same. Indeed, the only real differences seem to be with respect to taxes.

So my question really becomes: all things seem to be equal as between a small LLP and PC except that an LLP requires a much more expensive malpractice insurance plan. So ... why would any small firm EVER be an LLP instead of a PC? What am I missing here??

Any thoughts would be very useful at this point, and I thank you (as always!) for your input.

Cheers,

--Marc

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MARC/CROSVS | UCLA Bruin, B.A. Econ, Aug 2004 | J.D., Thomas Jefferson School of Law, May 2008 -- MEMBER: California State Bar, December 4, 2008

2005 BMW 645 Cabrio | Black Sapphire Metallic, Ti trim | 6AT | fully loaded sans HUD

2000 Ford Mustang V6 | laser red on tan | 5-spd | track-prepped