Considering restructuring to an Incorporated Legal Practice (ILP)? ....because it's harder than you think!

Ben Deverson • Jul 18, 2023

Incorporating your practice takes time and careful planning.

Is your legal practice currently trading as a Sole Trader/Practitioner, Partnership, and/or a Trust and you've been considering restructuring to an Incorporated Legal Practice (ILP)?

If this is you, then what we can tell you is that we are yet to meet a practitioner that has adequately grasped the magnitude of restructuring their practice to an ILP. The administrative, operational, and compliance factors are extensive.

A couple of years ago a law firm operating as a partnership approached the team at Lawganised seeking assistance to transition to an ILP.

It was the 20th of November, and they had set a date of 1 January to restructure: about 40 days, including a period of shutdown. Putting aside 1 January was a terrible date to implement such a change, 40 days was incredibly ambitious. Doable, but ambitious. Our Director, Ben, advised them to rethink and aim for 1 July the following year. Ben presented them with the Lawganised project plan for an ILP restructure.

The conversation then went like this:

Managing Partner (MP): "WTF?! You mean we have to do all of 𝙩𝙝𝙞𝙨?!"
Ben: Yep.
MP: A new trust account?
Ben: Yep.
MP: All new cost agreements/retainers?
Ben: Yep. For matters that will continue in the new entity.
MP: Geez, I had no idea there was so much to it.

So, if you are considering a switch to an ILP for your practice and are keen to understand the scope and scale of the change, contact us to discuss your plans.

Latest Blogs

Attn: Law firm Principals – Are your people ‘delegating’ to you?

By Ben Deverson • 27 Jan, 2022
Do your people 'delegate' work to you? Our experience suggests the answer is 'yes.' Read on.... The post Attn: Law firm Principals – Are your people ‘delegating’ to you? appeared first on Lawganised.

Things change! Don’t be afraid to disclose a new fee estimate

By Ben Deverson • 02 May, 2021
Adjusting a fee estimate on a time-based matter should not be a taboo subject. Too many legal practices surrender considerable revenue from poor practices and an unwillingness to disclose a new estimate. Thanks change and estimates are like a weather forecast; sometimes you get them wrong! So don't be afraid to provide your client with a new estimate..... The post Things change! Don’t be afraid to disclose a new fee estimate appeared first on Lawganised.

Despite what 2020 threw at us, the major challenges law firm principals face remains the same

By Ben Deverson • 31 Dec, 2020
If anything, 2020 certainly tested our resolve, our ability to change (or ‘pivot’ for the buzz word bandits out there (and I really hate that word)), and adapt to new ways of working. However, as the saying goes “Whatever doesn’t kill you makes you stronger.” We’re here and the year is done. It cannot be… The post Despite what 2020 threw at us, the major challenges law firm principals face remains the same appeared first on Lawganised.

Do you know your firm’s cost of doing business?

By Ben Deverson • 19 Dec, 2020
Do you know your firm’s cost of doing business? It’s easy, right? Look at your monthly Profit & Loss statement and checking that bold figure towards the bottom that reads, ‘Total Expenses.’ For me, I like to get a little more surgical than that. Knowing your cost of doing business, or CODB, is critical from… The post Do you know your firm’s cost of doing business? appeared first on Lawganised.
Share by: