ABS State Selection
Discover how to select the best jurisdiction for your Alternative Business Structure (ABS), including insights into Arizona and Utah licensing programs.
Why Jurisdiction Matters
The U.S. has no uniform ABS regulation. Only a few states—most notably Arizona and Utah—permit non-lawyer ownership or have established regulatory sandboxes. Choosing the right jurisdiction can affect everything from ownership structure to ongoing reporting obligations.
Key Jurisdictions Allowing ABS Models
Arizona
Arizona Supreme Court eliminated Rule 5.4, allowing full non-lawyer ownership.
Operates a formal ABS licensing process through the Arizona Supreme Court’s Committee on ABS.
Popular with firms seeking permanent approval rather than a pilot or sandbox model.
Utah
Runs a Regulatory Sandbox overseen by the Office of Legal Services Innovation.
Allows temporary authorization for innovative ABS models under data-driven oversight.
Suitable for testing hybrid services or technology-driven delivery.
Washington
Just launched applications October 2025
Brand new program with very little history
Factors to Consider When Selecting a Jurisdiction
Regulatory scope: What percentage of non-lawyer ownership is permitted?
Compliance requirements: Review reporting, insurance, and oversight costs.
Business goals: Consider where your clients and investors are based.
Reputation and precedent: States with established ABS programs offer greater predictability.
Looking Ahead
More states, including Tennessee and Oregon, are exploring regulatory reform. Early adopters have positioned themselves ahead of the curve by forming ABS entities in permissive jurisdictions.
Our team advises on ABS formation and jurisdictional strategy, helping law firms and investors navigate Arizona, Utah, and other emerging regulatory frameworks.