Forming an ABS
Understand the advantages and challenges of forming an Alternative Business Structure (ABS) for your law or professional services business.
The Business Case for an ABS
An Alternative Business Structure allows law firms to access non-lawyer investment and management expertise. This flexibility helps firms expand, innovate, and offer clients more integrated services.
Key Benefits
Access to capital: Outside investors can fund technology, expansion, and talent acquisition.
Cross-disciplinary services: ABS models let firms combine legal, accounting, compliance, or HR solutions.
Scalability and innovation: Data analytics, automation, and project management tools become easier to implement.
Common Risks
Ethical complexity: Mixing ownership may introduce conflicts of interest or regulatory scrutiny.
Governance oversight: Clear policies are essential to preserve attorney independence.
Market concentration: Entry of large corporations could change pricing dynamics in the legal sector.
How to Manage the Risks
Robust compliance programs, transparency with clients, and clear governance structures help maintain trust and ethical integrity while benefiting from the ABS model’s flexibility.
Thinking about launching or investing in an ABS law firm? We guide firms and business partners through structuring, licensing, and regulatory compliance.