Why are accountants and lawyers required to form partnerships and cannot operate as a company?
gimpalomp: Yes, you have missed the whole point of the question indeed. The partnership v company thing is a technicality thing. So, even though, as you've described the 'firm of accountants' will function as a company to the outside observer, legally it is registered as a Limited Liability Partnership. So, my question is why it is necessary, according to the law, to make this distinction.
Financial Services - 1 Answers
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Answer 1 :
What is an "Accounting Firm". If I form a company and have 40 accounts on the payroll that sounds like a company to me. The same is true of the legal staff for Microsoft or IBM. Even legal firms with partners are known to have associate attorneys. Those associates may or may not be offered a partnership at some point. It is simply a matter of how the money is divided. Associate attorneys or accounts are paid a salary or wage while partners get a cut of the profits. Or, am I missing the whole point of your question?
Answer 2 :
I think you mean Corporation (LLC) vs LLP. They are both companies. They are both allowed to form LLC. However, there are aspects of an LLP that make it more beneficial for these types of business to form LLPs vs LLCs.
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