A growing number of law firms are considering forming limited liability partnerships (LLPs), according to a survey carried out by legal accountants Smith & Williamson.
The survey shows 37 per cent of firms across the country are considering ways of limiting partners' liability, of which almost 90 per cent say they will choose to form an LLP rather than incorporation or increasing professional indemnity. The figure represents a rise from two thirds of firms last year.
Smith & Williamson tax partner Colin Ives says: “Firms are taking a very positive interest and it's a substantial increase on last year.”
In last week's Queen's Speech the Government announced a bill allowing LLPs, as predicted in The Lawyer (15 November).
City firms welcomed the bill. Allen & Overy partner Richard Turnor says: “I am very pleased. We have been campaigning for this bill for four years.”