It’s interesting to observe these developments in the U.S. As ABS and law firm setup specialists in the UK, we are accustomed to establishing ABS and lawyer-owned firms, as well as assisting international firms entering the UK market. The evolution in America may open up new possibilities and challenges, paralleling the significant changes we’ve seen across the UK legal landscape in recent years.
Washington State is actively exploring the adoption of alternative business structures (ABSs), marking a significant leap forward in modernizing the legal profession.
This progressive move breaks away from the traditional model of law firms in the U.S. Instead, ABSs open the door for non-legal professionals to own and invest in law firms, allowing an integrated approach.
ABSs have already transformed legal markets in countries like the UK and Australia, enhancing client service and operational efficiency. Until now, the U.S. legal market has been constrained by a model where only licensed lawyers, who are also members of their state bar, are allowed to practice law.
The introduction of ABSs in Washington, following similar moves in Arizona and Utah, signals a shift towards greater flexibility and innovation within the U.S. legal landscape.
Washington state has tasked its internal practice of law board, in collaboration with the Washington State Bar Association (WSBA), with drafting a proposal for a new pilot program.
This proposal, set to be submitted next month, represents a significant step towards adopting entity regulation, which contrasts with the traditional practice of regulating lawyers individually.
The pilot program is designed to be data-driven to help the court decide on making the reforms permanent. The pilot will undergo evaluation after a two-year reporting period, using scientific methods and data-driven techniques to assess its risks and benefits.
Participants must adhere to ethical guidelines and regularly submit data on their service delivery to the public. Additionally, the pilot addresses existing restrictions on law firm ownership, which, while crucial for public protection, are seen as barriers to explore.
For lawyers in England & Wales looking to set up, we have a range of services available to help launch your firm. Contact us today for further information by calling us on 0115 8700 443 or email [email protected].
