Solicitors practising in England are entitled to do so using various different legal forms, which include:
In common with non-legal businesses, there are tax and commercial costs and benefits to each legal form. Under current legislation, limited companies generally offer the most tax efficient route, although in many cases, this is unlikely to offer the flexibility that a law practice requires. For this reason, it is more common for legal firms to structure themselves as an LLP which may be more suitable to their specific requirements. The form of legal entity will determine how accounting and tax matters need to be dealt with.
All solicitors in the UK are also required to comply with the SRA Accounts Rules.