Tag: Person Law Firm

  • Internal management of individual law firms

    Internal management of individual law firms

    Strengthen the rules and regulations for the internal management of individual law firms. The establishment and also management of individual law firms should adhere to the principle of standardization. Gradual improvement by the law, and actively and steadily promote systematic construction. It relates to Person Law Firm in Management Systems. First, read the Development status of the individual law firms in Taizhou. After, Management defects of Personal Law Firms in Taizhou. Then, the Construction of individual law firms.

    Here are the articles to explain, Internal management of individual law firms

    Take the established Zhejiang Yongmo Law Firm as an example. Furthermore, the author recommends that individual law firms should set up the following systematic and standardized management mechanisms：

    • Democratic management and regulation, implement a democratic management system under the responsibility system of the chief lawyer, establish and improve operating regulations, and protect the legal rights and interests of the law firm and all staff.
    • The rules of procedure of the lawyers’ conference, the lawyers’ conference is the management body of the law firm. Mainly for the decision-makers of the law firm to provide reference opinions on the management and development of the law firm.
    • Also, administrative management regulations, are under the premise of implementing the director’s responsibility system. The law firm’s administrative management implements a system of division of responsibilities and realizes the standardization of daily administrative management.
    • Personnel management regulations, standardize the labor and personnel issues of law firms and ensure the legitimate rights and interests of employees.

    A Part 01

    • Regulations on social security benefits, social security, and welfare. Under the conditions of complying with the “Labor Contract Law” and related regulations. Reflect the principle of distribution according to labor and safeguard the legitimate rights and interests of all employees.
    • The rules for party building work, strengthen the scientific management of lawyers in the business of lawyers and ensure the healthy and stable development of lawyers’ careers. Also, It is necessary to deal with the relationship between the Party organization. The law firm’s administrative management and self-management. The Party’s construction must regard as the political guarantee for the development of lawyers’ careers.
    • Subject to case process management regulations, ensure the standardization of the law firm’s case process management work and strengthen risk control and prevention capabilities.
    • Conflict of interest management regulations, strengthen the legal service quality of lawyers in the firm. Also, Improve the credibility of practice, and reduce practice risks.

    B Part 02

    • Regulations on reporting on major sensitive matters, and a report registration system for major sensitive matters shall implement. Which shall be uniformly registered by the legal assistants of law firms. Also, Implemented under the supervision of the chief lawyer of the law firm.
    • Risk notification regulations, by the “Criminal Procedure Law of the People’s Republic of China”. “Civil Procedure Law of the People’s Republic of China”, “Administrative Procedure Law of the People’s Republic of China”. “Lawyers Law of the People’s Republic of China” and relevant laws and judicial interpretations. Lawyers may be notified in advance of the risks and responsibilities that may exist at all stages of criminal, civil, and administrative litigation.
    • Fee regulations, standardize the case collection and financial activities of law firms, prevent accidents, and formulate them. By the relevant provisions of the law firm’s “Articles of Association” and financial standards.
    • The cost of handling cases regulate. According to the “Lawyers Law” and its related regulations, when lawyers undertake various types of cases. Furthermore, the actual economic costs of handling cases shall be borne by the client. However, due to the failure of industry leaders in the region to issue corresponding guiding opinions. It is easy to raise objections. To properly handle the relationship with the client. Likewise, the law firm should make provisions on the cost of handling the case of the relevant lawyer for implementation when handling the case.

    C Part 03

    • Cooperation is subject to case management regulations, standardizing the handling of cases by lawyers of law firms or inter-firm cooperation, accelerating the development of lawyers in the direction of specialization, and formulating these regulations according to the actual situation of the law firm.
    • The project meeting of the consulting unit implements regulations. In the process of providing legal services to the legal counsel unit. Special regulations formulate to regulate the participation of lawyers in the project meeting activities of the legal counsel unit.
    • The management and regulation of legal service documents for consulting projects. In the process of providing legal advisory services by lawyers of the law firm. Also, Corresponding legal documents will produce based on the content of the services. To facilitate the management of legal service documents, regulations have existed formulated.
    • File management regulations, to standardize the business file management of the firm. By the relevant regulations of the state and also the legal profession file management, a special degree of customization make.

    D Part 04

    • Electronic document archiving and management regulations, to strengthen the management of lawyers’ archives and ensure the safety, effectiveness, standardization, and also order of digital archive information, by the “Archives Law of the People’s Republic of China”, “Electronic Document Archiving and Management Norms” and other relevant laws and regulations, combined with the actual situation, the “Digital Archives Electronic Document Archiving and Management System” system has been specially formulated.
    • Financial management regulations, to establish and improve the internal financial management system of law firms. Do a good job in the basic work of financial management, truthfully reflect the financial situation, calculate and also pay national taxes by the law. And ensure that the legitimate rights and interests of all lawyers and staff are not harmed. , Special customization.
    • Seal management regulations, to strengthen the seal management of law firms, prevent practice risks, and also improve work efficiency, special regulations have existed formulated.
    • Confidentiality regulations, to protect lawyers’ practice by the law, standardize lawyers’ behavior and protect the legitimate rights and interests of the parties, special regulations have existed formulated by the “Law of the People’s Republic of China on the Preservation of State Secrets” and also the “Lawyers Law of the People’s Republic of China”.

    E Part 05

    • Practice complaint work regulations, to standardize the management of law firms, by the relevant provisions of the “Lawyers Law of the People’s Republic of China” and also the “Zhejiang Lawyers Industry Complaint Investigation and Handling Work Rules”, special regulations have existed formulated for the actual situation of the firm.
    • The management and regulation of practice risks and accountability, by the “Lawyers Law of the People’s Republic of China” and the relevant regulations of the Zhejiang Provincial Bar Association, to strengthen standardized management, enhance the sense of responsibility of all lawyers and staff, learn from the lessons of the industry, live in peace of mind, and also held accountable for violations of laws and regulations, special regulations have existed formulated.
    • As a useful attempt to establish and improve the practice management of individual law firms. Also, the aforementioned regulations should adjust moderately to their own actual needs.
    Internal management of individual law firms Image
    Internal management of individual law firms; Photo by Giammarco on Unsplash.
  • Construction of individual law firms

    Construction of individual law firms

    Thinking about the standardized construction of individual law firms. It relates to Person Law Firm in Management Systems. First, read the Development status of the individual law firms in Taizhou. Then, Management defects of Personal Law Firms in Taizhou.

    (1) Standardize the creation system construction of individual law firms

    The new “Lawyers Law” stipulates that the registered capital for starting an individual firm is RMB 100,000. This is relatively difficult for economically backward areas, but for economically developed areas, the capital conditions are very low. Therefore, for the financial conditions for individuals to start a business, the competent inter-provincial judicial authorities should set their standards of not less than RMB 100,000 based on the local economic situation and divide them into provincial, prefecture-level cities, central cities, remote or economically underdeveloped areas for hierarchical setting.

    The job title conditions of the founders of law firms should also include in the considerations. For regions with developed economies or a high proportion of individual law firms. The title of middle (high) lawyer (third-level lawyer or above) should introduce. One of the conditions for entry barriers is to limit the proliferation of individual law firms. These regulations are conducive to the adjustment of regional differences. In addition, there should be regulations on the location of individual law firms.

    Lawyers should encourage to open individual law firms in remote or economically underdeveloped areas. And restrictions should place on the establishment of individual law firms in urban areas. As far as Taizhou City is concerned, it is an indisputable fact that the number of law firms in Jiaojiang District and Wenling City accounts for the high proportion of law firms in Taizhou City, while Sanmen, Xianju, Yuhuan, etc. stand relatively limited. Therefore, lawyers should encourage to start businesses in the aforementioned underdeveloped areas of the legal profession to meet the legal needs of the local people.

    (2) The construction of a system for the employment of lawyers in individual law firms

    At present, the management of the lawyer industry tends to advocate the large-scale. Professional and corporate construction of law firms to build an aircraft carrier of law firms. It believes that this move is the development trend of our country’s lawyer industry. But is not optimistic about the construction of individual law firms.

    In fact, in Western countries with relatively mature development of the rule of law. The legal profession has developed from the Middle Ages to the present. The large law firms (companies) created an account for only a few. Most of the legal services are still undertaken by individual law firms or small and medium-sized law firms.

    For example, half of the law firms in the United States are individual firms or small firms with less than 5 people. Among the more than 700 law firms in Hong Kong. There are only 26 larger law firms with more than 10 partners. But 44% of the law firms stand invested by individuals. Most law firms are small and medium-sized law firms with fewer than 5 partners.

    Construction of a system

    The development of the legal profession has to follow the laws and order that the legal service market should have. Of course, the development of the western legal profession has time and space conditions suitable for its democratic constitutional process. But it is not completely consistent with the national conditions of a large country with a population of 1.3 billion.

    For a country where the lawyer system has only existed restored for more than 30 years and lacks the tradition of the legal system. The progress of the legal profession is still unable to escape the synchronous limitations of the degree of the rule of law and cannot design subjectively.

    Therefore, the development of individual law firms should be an important part of the future development of the law industry. The competent judicial administrative authorities and the bar association should review. Revise the existing norms and policies that are not conducive to the development of individual law firms accordingly. To encourage the normal flow of lawyers and support the construction of individual law firms to create good conditions.

    (3) Build a management system for special committees of industry associations

    Based on the successful experience of the American bar association, the American Bar Association (AmericanBarAssociation) and the bar associations of various states have established special committees for individual practicing lawyers and small law firms (with 5 or fewer law firms). The latter’s services include but do not limited to, the provision of quarterly legal newsletters. Such as the Journal of the American Bar Association, and the development of convenient legal service tools (such as client lists and forms) to increase revenue, specifically for the development of cheap, complete, and easy-to-use office management systems and legal practice systems. With the help of the American Law Association, individual lawyers and small lawyers across the United States have gained huge development opportunities.

    As a successful peer experience, we have good reasons to share and cultivate its useful reference to the bar association. And set up a special committee to strengthen the guidance and management of individual law firms. Especially the establishment of an exchange platform for individual law firms. To further strengthen the publicity of individual law firms, use various media, the Internet, etc. To promote the deeds and achievements of advanced the construction of individual law firms, and increase the social influence of individual law firms. And provide sustainable industry support for the development of individual law firms, which will surely bring benign effects.

    (4) Improve the system for the reduction and reduction of taxes and fees borne by individual law firms

    Individual law firms are new things and deserve support from industry policies and enjoy the corresponding industry, tax, and other policy preferences, especially to focus on solving the current problem of excessive taxes and fees for lawyers, to encourage the development of individual law firms. In 2012, the Beijing Bar Association stipulated that the group dues of partnership law firms reduce from 10,000 yuan to 5,000 yuan per year. While individual law firms are exempt from paying group dues.

    Improve the system 01

    The Beijing Bar Association deals with the issue of lawyers’ dues from the perspective of economically developed regions and has played a role in thinking and innovating the management of lawyers across the country. For the consideration of the economically developed coastal areas, the Bar Association of Zhejiang Province and even Taizhou City are fully qualified to meet with Xian Siqi and waive the group dues of individual law firms or make a significant difference between the group dues of individual law firms and partnership law firms until the final reduction.

    The current national tax collection and administration law stipulate that. There are two types of tax collection methods for the lawyer industry in our country, including account collection and approval collection. In 2000, To standardize and strengthen the collection and management of personal income tax for law firm employees, the State Administration of Taxation issued the “Notice on Business Issues Related to the Collection of Personal Income Tax on the Income Obtained by Law Firm Employees” (National Taxation Issued [2000] No. 149), clarifying the relevant personal income tax issues.

    However, with the development of the lawyer industry and the changes in the form of the income distribution. As well as the gradual change of the tax department’s collection method from approved collection to account collection, new situations and problems have gradually emerged.

    Improve the system 02

    To this end, Based on fully listening to the opinions of law firm practitioners and tax cadres, the State Administration of Taxation, by the principle of actively promoting the investigation and collection of accounts in the lawyer industry, while taking into account the actual situation of the lawyer industry, formulated and issued the “Announcement on Personal Income Tax Issues for Law Firm Practitioners”, raising the standard for case expenses to 35%, and it will implement from January 1, 2013. According to statistics, under the approved taxation method, the tax rate borne by our country’s legal profession accounts for 9% to 15% of income. However, under the method of accounting and collection, the overall tax burden of the law firm (including business tax and additional taxes) accounts for more than 25% of its operating income.

    Due to the small size, the small number of personnel, and the small business volume of individual law firms. Such as the unified implementation of the accounting and collection method. It stands bound to increase the negative tax pressure and is not conducive to their development. Therefore, to promote the healthy development of individual law firms. Under the conditions that the state should implement preferential tax policies for individuals. It is not advisable to use the method of checking accounts and collecting taxes for individual law firms. But should use approved taxation as appropriate.

    (5) Create a professional risk-sharing system for professional lawyers in individual law firms

    It can see from the business model and debt-bearing methods of individual law firms that the founders of law firms are both investors and taxpayers. They are both self-employed and workers; they are both operators and managers. As a lawyer with more than five years of practice experience, he should abandon the previous mentality and thinking that case handling is out of touch with management, and personal interests have nothing to do with the overall interests and use his personal ability, charm, and strength to build, plan, and operate a personal law firm.

    Regardless of the scale of operations or asset management. It is difficult for individual law firms to compare with large-scale law firms. Therefore, it is necessary to strengthen the risk control of the practice. Reduce operating costs and practice risks at the same time. The control of risks of individual lawyers shall control through the establishment and improvement of guarantee systems. Such as risk research and risk sharing mechanisms (including supporting lawyers’ practice liability insurance).

    Other things;

    It is undeniable that it is very difficult to implement comprehensive tax control over the lawyer industry, but if the tax department conducts tax management by checking accounts and collecting, the law firm with the problem mentioned in the question will have a greater risk of management blind spots and loopholes. Back then, Dalian Chen Dehui Law Firm was investigated for so-called “tax evasion” under the condition of a tax package (approved collection). Although it was finally acquitted, the lesson was particularly profound, warning that individual law firms should attach great importance to tax issues.

    Taking into account the current financial system establishment and tax payment situation of individual law firms in Taizhou City. The author recommends that comprehensive considerations should be made of the size of the individual law firm. The number of practicing lawyers, the number of years of practice of lawyers, and the performance of the individual law firm. The approved collection measures for individual law firms should be formulated, and the approved collection management should be fully implemented. In summary, the standardized construction of individual law firms is not a one-day effort. It requires judicial and administrative organs, bar associations, law firm founders, and practicing lawyers. And other parties to work hard to innovate and improve from multiple angles. Such as creating conditions, talent teams, peer collaboration, innovation regulation, and risk control.

    Conclusion

    The creation of an individual law firm requires very high business credibility and integrity requirements. The number of regions marks the advantages and disadvantages of a local rule of law environment. And its healthy development requires a fairly developed and perfect rule of law environment. The development and management of individual law firms should respect the laws of the development of the law industry. Draw moderately on the successful experience of the development of the lawyer industry in western countries. In the specific system planning, national conditions and regional differences need to be considered. Especially in terms of policy incentives and business support measures.

    The joint efforts of judicial administrative organs, bar associations, law firms, and individual lawyers. They are required to continuously improve them, and then promote the healthy and stable development of individual law firms. Individual law firms should work hard to improve the overall quality of lawyers, work hard on industry innovation and development, work hard to establish the image of lawyers, and further strengthen the construction of lawyers’ own industry culture, enhance the political quality, professional quality and moral quality of lawyers, and provide better legal services to various groups in society to establish a good social image. Next, Internal management of individual law firms.

    Construction of individual law firms Image
    Construction of individual law firms; Photo by Trent Erwin on Unsplash.
  • Management defects of Personal Law Firms in Taizhou

    Management defects of Personal Law Firms in Taizhou

    The author was appointed by the Taizhou Bar Association to participate in the selection of personal law firms and outstanding lawyers in Taizhou City. In the process, the author learned from close range that most personal law firms do have insufficient practice norms. Some even have imperfect basic practice regulations, weak management, lack of space, and the ability for self-improvement. And simply can’t talk about the overall competitiveness of the law firm.

    Here are the articles to explain, Management defects of Personal Law Firms in Taizhou

    Combined with the analysis and research during and after the election. It relates to Person Law Firm in Management Systems. Development status of the individual law firms in Taizhou. The author believes that the current management defects of personal law firms mainly exist in the following aspects：

    (1) Problems in the implementation of the current normative documents of individual law firms

    The new “Lawyers Law” only provides for the establishment of personal law firms in principle. But there are no specific operating procedures. To this day, the “Measures for the Management of Individual Law Firms” have not been issued. Making the establishment and regulation of individual law firms lacking systematic norms, supervision, and guidance. On April 12, 2006, the Zhejiang Provincial Department of Justice issued the “Zhejiang Province Pilot Work Plan for Individual Law Firms” (Zhejiang Division [2006] No. 63).

    The plan only clarifies that the pilot work of personal law firms should adhere to the principle of combining legality and exploratory nature. Except for the exploration allowed by the organization of law firms. The rest should carry out within the framework of existing legal provisions. For issues that are not clarified in the pilot plan for personal law firms in Taizhou, follow the “Lawyers Law”, and “Law Firm Registration Management Measures”, and refer to the relevant provisions of the “Partnership Law Firm Management Measures”.

    It is obvious from this that the pilot work plan encourages the combination of bold exploration and prudent action. Actively promotes the combination of gradual and gradual progress. The purpose is to accumulate experience and make basic preparations for the introduction of more direct and standardized personal law firm management rules in the future.

    Problems in the implementation 01

    On March 08, 2007, the Zhejiang Provincial Department of Justice implemented the “Notice on Further Regulating the Administrative Licensing of Law Firms and Lawyers’ Practice” (Zhejiang Division [2007] No. 49), which involves the part of personal law firms. But still emphasizes that it is in the pilot stage and requires. That carries out by the conditions and procedures stipulated by the Ministry of Justice and provincial departments. Other departments on the pilot work of personal law firms opinions, plans, etc., Carefully reviewed and strictly checked. There are no further substantive regulatory requirements for the practice activities of personal law firms.

    Compared with the Zhejiang Provincial Department of Justice, the Zhejiang Provincial Bar Association issued the “Implementation Opinions on the Implementation of the Standard Construction Year Activities of Partnership Law Firms” on February 22, 2005 (Zhejiang Division [2005] No. 24). The “Opinions” stand specifically aimed at the standardized construction of partnership law firms. They concretize in terms of guiding ideology, work objectives, and practice regulations, and are highly operable.

    However, the industry norms on the management of personal law firms. That has existed formulated in judicial administration are extensive, weakened, and have poor operability. One sparse and one dense. The gap between them is not conducive to the standardized construction of individual law firms in Taizhou.

    Problems in the implementation 02

    From the perspective of Taizhou’s regional perspective, due to the particularity of the regional economy. The disadvantages expose by traditional organizational law firms in the operation process. The foundation of human cooperation has stood damaged, and the law firm has disintegrated or split frequently. Which has contributed to the rise of individual law firms. Also due to the exploratory and extensive nature of the management of individual law firms. With the increase of violations and prohibited records, the attention of judicial and administrative organs has increased significantly. Then there has been a strict and even restrictive attitude in the declaration and approval work of personal law firms in Taizhou.

    This move is inevitably in violation of the “Lawyers Law”. The author believes that the progress and development of the regional lawyer industry should still carry out by the principle of combining bold exploration and prudent action, and actively promoting the combination of step-by-step progress. It is not a good idea to waste food because of unworthiness.

    To promote the standardized management of law firms, establish a scientific evaluation system, create industry integrity, strive for excellence, and promote the standardized development of the law industry, the Taizhou Municipal Bureau of Justice and the Taizhou Bar Association have been performing industry management functions since 2010.

    Problems in the implementation 03

    At the same time, they have launched a “100% assessment” system for law firms according to local conditions. Which has made concrete requirements in terms of system construction integrity. Standardized practice participation in special activities, law firm performance, cooperation in supervision, guidance, and team building. Which has played a direct and positive role in standardizing the standardized construction and healthy and orderly development of personal law firms in Taizhou.

    However, the aforementioned assessment system is general. Because of the situation where an individual law firm can build a firm by one person. How to carry out targeted, continuous, and long-term standardized activities. So that the professional ethics of lawyers in individual law firms, practice discipline education, investigation, and punishment of lawyers’ violations. The management of interns and the annual assessment of lawyers’ practice can resolve promptly, but there are few targeted methods. This still highlights the lack of effective measures for the management and regulation of individual law firms.

    (2) Problems in the self-management of individual law firms

    Individual law firms lack a relatively sound management system. According to the “Regulations on the Management of Law Firms” of the Ministry of Justice. Law firms should formulate practice management and other internal management systems. Which should involve business, finance, labor and personnel, administration, training, conflicts of interest, complaint handling, etc. Regulations, but personal law firms in Taizhou still have individual law firms that lack a systematic and standardized management system.

    There are still loopholes for individual law firms to hire lawyers and auxiliary personnel to handle social insurance. Such as a pension, medical care, and unemployment. Some law firms still refuse to handle it or use wages in disguise to offset the aforementioned fees.

    In the event of a labor dispute, it is very easy to touch on the risk of practice management. Individual law firms have not established funds for practice risk, career development, social security, etc. The statutory accounting ratio or the method of fund withdrawal and the proportion of costs is unreasonable. There are gaps in financial regulations.

    It is difficult for individual law firms to recruit practicing lawyers externally, which affects medium and long-term sustainable development. The competition in the legal profession is ultimately competition for talents. Compared with partnership firms, it is more difficult for individuals to recruit lawyers. The current management system of certain lawyers is also not conducive to the training and introduction of practicing lawyers by individuals.

    Article 16

    According to Article 16 of the “Rules for the Implementation of the Management of Applying for Internships for Lawyers and Practitioners (Trial Implementation)” of the Zhejiang Provincial Bar Association. Which came into effect on July 1, 2011, the conditions for law firms to accept internships for lawyers. The law firm has been established for one year and there are qualified internship guidance lawyers.

    The implication is that even if there are qualified internship guidance lawyers. Although outstanding lawyers are willing to enter the firm for internships, the newly established law firm cannot accept it. These regulations also mean that it is difficult for newly established law firms, including individuals, to train and introduce young lawyers. The aforementioned prohibitive provisions of the Zhejiang Provincial Bar Association are essentially in conflict with the “Rules for the Management of Lawyer Internships (Trial Implementation)” implemented by the All-China Bar Association on August 1, 2010.

    Article 8

    Article 8 of the rules stipulates that law firms shall not accept interns for internships in any of the following circumstances:

    • No internship guidance lawyer meets the prescribed conditions;
    • They have been subject to administrative penalties or industry punishments below the suspension of business for rectification, and less. Then one year has passed since the date of the punishment or disciplinary action;
    • They have been subject to administrative penalties for suspension of business for rectification. And the penalty period has not expired or not more than three years after the expiration of the period;
    • They have been subject to industry punishments that prohibit them from accepting internships, and the period of punishment has not expired. The rules of the All-China Lawyers Association do not restrict newly established law firms from accepting trainee lawyers.
    Provisions of Article 16
    • The provisions of Article 16 of the “Implementation Rules (Trial Implementation)” of the Zhejiang Provincial Bar Association are self-wilting and self-binding. They have no long-term effect on the development of the bar industry. They have a hundred disadvantages but no benefits to promoting the construction of a “ten thousand-person ratio” of lawyers in Zhejiang Province and even Taizhou City.
    • Individual law firms lack talent training plans (including the training of young lawyers) and have not set up talent training funds. The method of fund withdrawal and the proportion of costs are seriously low. Which cannot guarantee the medium- and long-term development needs of law firms.
    • Individual law firm personnel face obstacles to the flow of talents and are unable to contend with the strategies of headhunting. High-paying absorption implemented by large-scale law firms has prompted frequent job changes.
    • Individual law firms have limited means of market development and cannot maintain and fix medium- and long-term customers.

    (3) Financial and tax issues of individual law firms

    In addition to the legal responsibilities of individual law firms, the risks of individual law firms cannot avoid. The financial and tax burden of law firms is unavoidable. On the one hand, individual law firm taxes and fees are too high. Which affects operating costs and even survival and development. Although individual law firms have the characteristics of low cost, high efficiency, small but refined, convenient, and fast, they cannot avoid the problem of excessive taxes and fees.

    According to the Articles of Association of the Bar Association, law firms require to pay group dues every year. The standards for payment of dues vary from place to place. In most places, they uniformly collect according to the inter-firm standards of law firms. Regardless of the number of lawyers in the law firm, regardless of the difference between the partnership and the individual, the dues of the law firm collect according to a unified standard. The dues of the law firm seem to be equal in form, but they are not equal in substance.

    According to the relevant provisions of the current tax law, the tax authorities always implement accounting and collection for law firms. Under the method of accounting and collection, the overall tax burden of law firms accounts for more than 25% of their operating income. In addition, individual lawyers also have to pay personal income tax. For individuals, taxes are excessive. The current method of taxation of tax income is not conducive to personal law firms. And the tax policies in Taizhou City do not reflect certain tax incentives for personal law firms.

    On the other hand

    The financial and tax management of individual law firms is also generally lacking in the following situations. Leaving many hidden dangers for the healthy development of the unit and even the entire industry.：

    • The financial state is in disarray. More individual law firms only conduct simple bookkeeping of financial income and expenditure, and the bookkeeping vouchers are incomplete or illegal. Detailed ledgers such as account breakdowns have not been set up by relevant financial accounting regulations.
    • Income has strong concealment. Since most lawyers handle cases directly with the parties, there hide income that does not reflect in the books of the law firm. This leads to a large loss of business taxes, surcharges, and income taxes, and also brings the risk of tax evasion.
    • Falsely list expenses and costs. In the case where the fees are collected by the law firm, the lawyer provides bills that have nothing to do with the handling of the case to be reimbursed by the law firm and obtains the balance of the lawyer’s fees after deducting the agreed proportion or management fees from the law firm. In this way, not only did the lawyer’s income and income conceal. But also due to a large number of false expenses and costs, the law firm’s book losses were caused, resulting in a large loss of income tax.
    Other things
    • The means of falsely reporting expenses are diversified. Most of the false invoices are commercial invoices; the content of the invoices is mostly in the name of “office supplies”. There are invoices obtained in the past fiscal year, invoices for family activities expenses (a certain law firm is a male lawyer practicing. But the expenses are listed but reflect the expenses of women’s supplies), telephone bill receipts for personnel from foreign units, etc.;
    • The catering invoices mix into welfare expenses and travel expenses. When the invoices are not enough to offset the income from lawyers’ fees. The wages of lawyers who did not obtain lawyers’ fees in the current month are used to offset the top. All of this restricts the healthy and stable development of personal law firms in Taizhou. It should have high value to judicial administration, industry associations, and researchers in the industry, and seek positive methods and channels to solve it.

    Next, is the Construction of individual law firms.

    Management defects of Personal Law Firms in Taizhou Image
    Management defects of Personal Law Firms in Taizhou; Photo by Jez Timms on Unsplash.
  • Development status of the individual law firms in Taizhou

    Development status of the individual law firms in Taizhou

    Since September 2008, the first individual law firm in Taizhou City has been officially listed. This means that the organizational form of law firms that coexist in the three forms of state-owned capital, cooperation, and partnership has begun to change in Taizhou City, making the development model of law firms have to reshuffle, not only injecting fresh blood into the silent law firm development model but also bringing new opportunities and problems to the survival and development of individual law firms. It relates to Person Law Firm in Management Systems.

    Here are the articles to explain, Development status of the individual law firms in Taizhou

    Individual law firms are a new type of law firm organization form stipulated in the revised “Lawyers Law”. The new “Lawyers Law” stipulates that in the establishment of an individual law firm. In addition to having a standardized name, a fixed practice place, and articles of association. The founder should also meet the conditions of having more than 5 years of practice experience. A lawyer who does not punish for ceasing practice and has assets of more than 100,000 yuan.

    A law firm opened by an individual, as a lawyer’s practice institution funded by an individual lawyer and subject to unlimited liability for the debts of the law firm with all personal assets, has the advantages of clear responsibilities, low cost, close to the people, and convenient service. This is conducive to further promoting lawyers to enter towns and communities, and better provide legal services to the grass-roots people. According to statistics from the Taizhou Bar Association, as of March 30, 2013. There were 85 law firms and 805 lawyers in Taizhou City, including 56 partnership firms and 29 individual firms.

    Essay

    The proportion of individual law firms is 31.12%. In just five years, Taizhou individual law firms have grown from scratch to account for more than one-third of the total number of law firms. The momentum is rapid, fully reflecting the natural rationality and necessity of new things when they develop promptly. As judicial administration or peer management, the research on the new thing of individual law firms should also follow up simultaneously, and in the process of development. We should further explore how to improve the practice management regulations of individual law firms. To promote the healthy and stable development of such institutions in the legal service industry.

    Based on the analysis of the work summary of the Taizhou Bar Association in 2012 and the investigation of visits, the author believes that individual law firms in Taizhou generally have a small scale, personnel, unclear professional division of labor, lack of high-quality talents, simple internal organization, unreasonable level of personnel positions, unreasonable ability structure and other outstanding problems, law firms lack competitiveness, poor risk resistance, weak management, gaps in legal culture construction and other status quo.

    Performance

    Its specific performance is as follows：

    1. Individual law firms hire a small number of lawyers, mainly centered on the establishment of law firms, and at most hire 1 to 3 full-time lawyers or several paralegals.
    2. The qualifications of practicing lawyers in individual law firms generally meet the requirements of undergraduate degrees. But there are few or relatively few graduate degrees or above.
    3. Individual law firms have existed established for a short period. And generally lack an outline of the medium- and long-term development plan of the law firm.
    4. Most of the average annual income of individual law firms after their establishment stands limited to less than 500,000 yuan. Their economic income-generating strength stands relatively limited, and a stable income-generating model does not yet form.
    5. The remuneration system of practicing lawyers in individual law firms is relatively chaotic, and remuneration calculates by commission, award, or coexistence. Individual law firms use an internal collection of annual fixed management fees to issue invoices on their behalf.
    6. The main business scope and types of individual law firms mainly concentrate on the traditional lawyer business level. They lack the expansion of new business areas under the new economic conditions.
    7. The internal management regulations of individual law firms are simplified and risk prevention is weak.
    8. The construction of the legal culture of individual law firms is blank, lacking the cultural charm and brand sense of the law firm.

    The existence of these problems

    In addition, the current restrictions caused by regional economic conditions are generally directly related to the low political and social status of lawyers, fewer opportunities to participate in social management, poor channels, and the “three difficulties” of practicing law. The problem has not existed effectively alleviated, and the awareness of service urgently needs to improve.

    The author believes that the more important thing is that the management of individual law firms is relatively simple and extensive. There are many internal problems and industry norms regarding the management of individual law firms. That have stood formulated in judicial administration stand also relatively weakened. Which has led to frequent violations of personal law firms, and even criminal disadvantages.

    Today’s lawyers stand generally recognized as wealthy. But more important than money and material is to respect and gain the trust of society. To achieve this goal, lawyers must have good professional ethics, behavioral habits, and integrity higher than the general social group. From 2008 to the present, there have been more violations by individual law firms or lawyers in Taizhou City. The emergence of these situations is largely related to the lack of supervision of individual law firms. Next, Management defects of Personal Law Firms in Taizhou.

    Development status of the individual law firms in Taizhou Image
    Development status of the individual law firms in Taizhou; Photo by Clarisse Meyer on Unsplash.