Navigating one’s law firm partnership structure isn’t just about achieving a rank. For many lawyers, attaining the status (and accompanying ownership, profit potential, and prestige) that comes with becoming a partner is a lifelong career goal.
However, capturing that dream isn’t always an easy feat—especially with the variability of law firm partnership models today.
While you may have a vision of what your partnership track could look like, the traditional structure is no longer the only option. If you’re an attorney looking to become a partner, start by learning the ins and outs of your firm’s partnership structure. That way, you can master the rules of the game you’re playing.
In the following guide, we’ll start highlighting some law firm partnership models. Then we’ll explore what a partner is and what their responsibilities are. We’ll also provide tips for increasing your chances of becoming a partner in a law firm.
Law firm partnership structures can take many forms. In addition, the criteria for choosing a law firm partner varies from firm to firm, depending on the law firm’s partnership model.
Traditional law firm partnership structures tend to choose partners based on years of experience and billable hours. In contrast, newer law partnerships models tend to have different pay and profit-sharing structures. Newer partnership models may also select partners based on alternative performance factors.
Let’s explore some of the common types of law firm partnership structures.
Traditional law firm partnership models reward experience and incentivize bringing in clients and revenue. Typically, people believe these are key factors to long-term success at a law firm. Commonly, traditional law firm partnership models follow a single-tier approach, where:
Different firms calculate profit shares differently, depending on the firm’s structure and size.
Law firm profit sharing is complex, with many law firms creating their own formula for profit sharing and compensation. In profit sharing, the law firm’s employees are given a percentage of the firm’s profits based on the firm’s earnings. In some law firms, all partners share equally in the profits, whereas in others, senior partners might receive double the shares.
In a formula-based model, the law firm develops a compensation formula based on a variety of factors such as, billable hours, client list, business development, or other important contributions. This model rewards multiple aspects of performance rather than focusing on only one or two. It also provides transparency into the compensation structure. Despite considering multiple factors, it still might not account for all valuable contributions to the law firm.
As owners, law firm partners are typically at the “top of the pyramid” in a law firm. Below partners, you will find associates—lawyers who are employed by the law firm but do not have ownership of the business. In addition, some law firms may also engage the services of “of counsel” lawyers who are not employees of the firm but work for the firm as independent contractors. Typically, “of counsel” lawyers are specialists or highly experienced lawyers who offer their services to a law firm on a part-time basis.
However, some challenges commonly emerge when we look more closely at traditional law firm partnership structures:
One of the most common challenges of traditional partnership structures is that it can drive competitiveness. When partners have the responsibility (and profit reward) of bringing in new business, other lawyers and non-equity partners have less incentive to participate.
To mitigate this, some law firms may give credit and origination bonuses to partners who bring in new cases—and reward lawyers who perform work on the matter.
Consider a scenario where a partner brings a case to the firm, but another attorney performs the work. Depending on the compensation structure, the partner could receive a percentage of origination credit for the work the colleague completed. At the same time, the colleague who did the work would also receive a percentage of the revenue from the work they completed.
However, when using this type of structure, it’s important to bear in mind any potential for discrimination or misuse of the model that prioritizes certain demographics.
Not all law firms adopt a wholly traditional law firm partnership structure. By rethinking roles and types of partners, more law firms are adopting different law firm partnerships models. Examples of other law firm partnership structures include:
In a traditional lockstep law partnership model, a partner’s compensation increases as their seniority and years of service increase. This model encourages partners to stay with one firm, increasing stability and reducing competition. A drawback, however, is that high performers may not be adequately compensated for their work because compensation is directly tied to years of service.
Rather than tying compensation to years of service, some law firms compensate partners based on the revenue they generate, rewarding individual performance. This encourages partners to bring in more business and ensure their current clients are happy. However, it can also promote competition rather than collaboration.
The modified lockstep model combines lockstep and eat-what-you-kill law firm partnership models. The base compensation uses a lockstep structure where partners are compensated for their years of service. Bonuses and additional compensation are based on individual performance. This balances firm stability with performance incentives, and encourages teamwork and individual achievement. It can be complicated to administer, however.
This common law firm partnership structure is a twist on the traditional. With two-tier partnerships, instead of all partners splitting ownership of the firm, not all partners are equal.
In this model, some partners are equity partners, while others are non-equity partners. Equity partners have to fund a buy-in for owning a portion of the firm. Non-equity partners don’t have to buy-in, but also don’t have an ownership stake in the firm. Non-equity partners often continue to receive a salary as their compensation—instead of being paid based on firm profits.
Why become a non-equity partner? Non-equity partners may not enjoy the ownership that equity partners have access to, but they receive the prestige of holding the title of partner. Depending on the firm, non-equity partners may also have additional powers like limited voting rights. This allows equity partners to show their confidence in a non-equity partner, without thinning the power of their firm ownership.
After a few years, most non-equity partners usually get the opportunity to become full equity partners.
While the law firm hierarchy varies by firm, many firms further differentiate their partnership model to include senior partners and/or a managing partner.
This type of hierarchy may not make sense for small law firm partnership structures. Small firms may have room for a managing partner or senior partners, but likely not both. However, in a medium or larger-sized law firm, senior partners report to the managing partner, who typically also takes on firm management, operational, and strategic duties in addition to legal practice at the firm.
If becoming a partner at a large law firm doesn’t fit with your career path, starting your own law firm is one excellent way to become your own boss. When running a solo practice, you set your own rates and have the flexibility to make decisions about the firm yourself.
However, starting a law firm may not be the best choice for everyone. While you can immediately become the sole partner at your own firm, it can take a few years (and a lot of support) to get a new firm running and profitable.
A law firm partner is a lawyer who buys into a firm and generates revenue in exchange for a share of ownership and profits. As a partial owner, law firm partners are usually more involved with the business of running the law firm in addition to the day-to-day responsibilities of practicing law.
In the law firm hierarchy, law firm partners are considered senior-level positions.
Responsibilities often include:
Benefits of being a partner:
Moving up the law firm hierarchy to become a partner typically requires lawyers to have a combination of experience and achievements. The first steps are to obtain a law degree from an accredited law school and pass the bar exam.
Following that, lawyers usually need several years of experience, between 6 and 10 years depending on the law firm partnership structure. They should also have a solid record of handling cases, transactions, and other legal matters.
There are also some characteristics that law firm partners should have:
Although the structure may be traditional, firms can differentiate themselves by allowing their attorneys to set their own rates. When partners and lawyers can set their own rates, they work like entrepreneurs—free from billing quotas and the billable hour. This type of system works well for firms that want the freedom to incorporate alternative fee structures in their practice.
A partner at a law firm is generally compensated with a share of the firm’s profits, in exchange for an initial buy-in payment to achieve partnership status. A non-equity partner does not have an ownership stake and usually receives salary compensation.
The first step to working up the law firm hierarchy and becoming a partner is to learn about the specifics of your law firm’s partnership structure. You’ll need to know the criteria for your case if you want to meet them and put yourself on the potential partnership track.
Familiarize yourself with your firm’s partnership criteria. You can usually do this by talking with current partners and reading through internal documents. Make sure you understand what your firm values most.
While the specific steps to becoming a partner vary by law firm, there are milestones that are typical of the journey up the law firm hierarchy.
In addition to meeting any specific criteria and doing consistently excellent legal work, you should also consider the following:
A good lawyer helps a firm by serving clients, but being a partner in a law firm goes beyond client service.
If you can bring new opportunities to your firm—from establishing new client relationships to finding additional revenue streams—you can make yourself more valuable. This is why making business development part of your professional journey is key to your success as a lawyer and a potential partner.
If you and your fellow firm associates are working at the same level, excelling in a niche area is a smart way to set yourself apart. Developing a niche could mean identifying a legal area that your firm works in, but no one else has real expertise in; or focusing your work on a specific industry.
In addition to taking on cases or volunteering to assist on projects in that niche, focusing your ongoing lawyer training (such as CLE learning, conferences, and courses) in that area of law can raise your profile within the firm. Developing a niche or specialty can also help elevate you towards a partner track more quickly.
No matter what law firm partnership model your practice follows, it’s in your best interest to stand out from the crowd positively.
Your goal should be to:
To develop your personal brand, you might consider a combination of strategies like:
Building and maintaining a network of strong professional relationships is a pillar of success for any attorney. Networking is also especially important if you want your firm to see and support you as partner material.
If you struggle with networking, you’re not alone. But it’s in your best interest to develop your skills so you can build better professional relationships. For example, being prepared with these top attorney networking tips can help make networking feel more focused and less vague.
As Jack Newton explains in his book, The Client-Centered Law Firm, today’s legal clients have many options when it comes to legal services. That’s why law firms who want to stay competitive must adopt a client-centered approach.
Similarly, attorneys who want to differentiate themselves within their firm can strive to deliver a client-centered experience and consistently exceed client expectations. This could mean strategies like:
Strong, lasting relationships with clients are a solid foundation for building your case for partnership at your firm.
No matter what point you’re at in your legal career, finding a legal mentor is a valuable way to look beyond where you are at the present moment. If becoming a law firm partner is your goal, working with a mentor who is already a partner can be helpful. For example, a mentor may be able to help you set professional goals or focus your career vision.
As you move up the partnership track, seek opportunities to take on leadership roles within the firm. You can lead committees, organize events, or mentor junior associates. Each of these activities shows your commitment to the future of your firm.
Not sure where to start? Our guide on legal mentors—and how to find one—can help get you started.
Navigating today’s law firm partnership structures can be challenging. Traditional law firm partnership models are no longer the sole option for lawyers. Lawyers now have more types of partnerships—and potential paths to partnership—to consider.
Whatever type of law firm partnership structure you’re working with, becoming a partner requires more than just good legal work. Attorneys who want to become partners need to show that they can bring in new clients and have a mind for the business side of running a law firm.
By learning the specifics of your firm’s partnership structure and setting yourself apart through strategies like business development, networking, and creating exceptional client experiences, you can increase your chances of being a partner.
The typical definition of a law firm partner is an attorney who buys an ownership interest in the firm and receives a share of the profits. Partners can be further differentiated by whether they are non-equity, managing, or senior partners.
A partner at a law firm is generally compensated with a share of the firm’s profits, in exchange for an initial buy-in payment to achieve partnership status. A non-equity partner does not have an ownership stake and usually receives salary compensation. Learn more about how much partners make in this blog.
We published this blog post in September 2021. Last updated: August 22, 2024 .
