What is an ABS?
Learn what an Alternative Business Structure (ABS) is, how it works, and what it means for clients seeking modern legal services.
What Is an Alternative Business Structure (ABS)?
An Alternative Business Structure (ABS) is a licensed model that allows lawyers and non-lawyers to own, manage, or invest in a single legal services business. Unlike traditional law firms—where only attorneys can be equity owners—an ABS can bring in professionals from finance, technology, or other industries to help deliver legal services more efficiently.
Why ABS Models Are Emerging
States such as Arizona and Utah have opened the door to ABS licensing to increase innovation and consumer access. By blending legal and non-legal expertise, ABS firms can integrate services like accounting, compliance, or technology consulting into one offering.
Benefits for Clients
Broader service options: Clients can access legal and business support in one place.
Greater affordability: ABSs can attract outside capital to improve efficiency and reduce cost.
Technology and innovation: Non-lawyer investors often help modernize processes and improve client experience.
Consumer Protection and Regulation
ABS entities are licensed and monitored by state regulators to maintain attorney ethics, confidentiality, and competence. Clients continue to receive the same professional protections as in a traditional firm setting.
Final Takeaway
The ABS model represents a new, regulated approach to delivering legal services with flexibility and innovation—without compromising ethical standards.
If you’re exploring how an ABS structure could benefit your organization, our firm can help you assess licensing options and compliance obligations.