Legal Question in Legal Ethics in California

Hi,

My friends and I live in California and we are looking into starting a small multi-disciplinary company. One of us went to law school, one of us is a CPA, one is a computer programmer, and I have experience in marketing and advertising. We are envisioning that a potential client can come seeking services from any one of the disciplines of expertise offered by our partners or a that same client can seek services from multiple areas of discipline. Each of us are hoping to be equal partners in the company and though we might not necessarily split the revenue generated from client fees (i.e., myself and myself alone receive the fees charged to clients who seek advertising and marketing advice, while the other partners receive nothing) we each would equally share the expenses of the business. However, we run into the issue in the California law that does not allow my lawyer friend to join into a multi-disciplinary partnership in which part of the partnership involves the practice of law. We were curious if anyone might know of some loopholes in this rule or have any related suggestions that might allow for us to continue forward with this business idea. Thanks so much in advice for your input.


Asked on 11/13/12, 1:49 am

1 Answer from Attorneys
Victor Waid Law Office of Victor Waid

First, their is no loophole for a California lawyer to be part of a multidisciplinary partnership; the reason is the lawyer has duties to clients, such as confidentiality and ethics, the rest of the partnership would be privy to and would be a breach of the attorney client relationship.

Second, the partnership does not sound to be very fair if all partners have to share the expenses, but the partner who brings in the income gets to keep the income over and above his share of the expenses; I certainly would not want to be part of that partnership. If all partners don't share the income, then what is the motivation to be a partner except your friendship, which does not pay the bills.

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Answered on 11/13/12, 10:52 pm


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