Attorneys Mathew Kerbis and Lauren Lester kick off their joint series on How to Run a Law Firm in 2025!
In a candid discussion about choosing business entities for law firms, Mathew and Lauren share their experiences and insights for new lawyers starting or running their own practices. Both initially chose to form LLCs, with Lauren using Google for research nine years ago and Mathew following the example of previous firms where he worked and checking with his state’s Supreme Court. They emphasize that while the entity choice is important, new lawyers shouldn’t let perfect be the enemy of good enough when starting out. Both started as single-member LLCs with pass-through taxation. Lauren transitioned to S corporation taxation status years later while Mathew is planning to do so in the near future. They stress the importance of working with CPAs for tax matters, maintaining separate business and personal finances, and building up a financial cushion before taking regular payments from the business. The key takeaway is that lawyers don’t need to choose S corp status immediately when forming a LLC, as the entity taxation structure can be changed later when it makes financial sense (in consultation with a CPA).
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