What You Need to Know About Law Firm Titles

 

SUMMARY

This article explains the legal industry's different legal titles, such as equity partner and non-equity partner. It takes an in-depth look at what it means to be a senior partner and how long it takes to get there. It also discusses the pros and cons of starting your practice versus working for a larger firm. Finally, tips are provided on how to become an equity partner. With hard work and dedication, anyone can become a senior partner in the legal industry.

QUESTIONS ANSWERED IN THIS ARTICLE

 

• What is an Equity Partner?
  An equity partner is an attorney who owns part of the business and gets a share of the profits.
   
• How long does it take to get full equity status?
  It typically takes six to nine years to progress from non-equity partnership to full partnership ranks. Usually, the path includes being a summer associate, progressing to associate, senior associate, non-equity partner, and finally, equity partner.
   
• What does it mean to be an Equity Partner?
  Being an equity partner means you have the respect of your peers, other attorneys, and subordinates. You take an active part in running the business and are partly responsible for its growth.
   
• What are some roles an equity partner could play?
  An equity partner could take on several management responsibilities, work at developing the company culture, ensure hiring standards and work ethics are high, take on a leadership role in the company market, plan for strategic growth, set high standards for work to be an example to subordinates, and possibly buy into the firm.
   
• How can one become an Equity Partner?
  The only way to become an equity partner is to work hard and prove that you are an asset to the organization. You must take on an active role in running the law firm and demonstrate a commitment to success. Additionally, you must be prepared to bear any legal implications of the company's actions as a senior partner.

Knowing what common law firm titles mean is vital to advance your legal career. Three common attorney titles — “of counsel,” “non-equity” partner, and equity partner — describe the attorney’s relationship with the law firm. The titles also define the type of attorney that typically fills the position. 

Why is it crucial to fully understand the difference between an “of counsel” associate attorney and equity and non-equity partners? First, knowing the distinctions can help you choose your legal career path. It also lets you know what awaits you if you accept a permanent position in a major law firm. 

In this article, I will share vital facts on the various roles of law firm associates. This information will help you make career decisions. It will help you decide if your goal is to become an equity partner, non-equity partner, or settle for being an of counsel attorney.
 

The Roles of Law Firm Attorneys

Law firms are typically organizations with several attorney and non-attorney executives. Depending on the organization’s size, hundreds of attorneys can work there. These lawyers range from interns and younger attorneys who want to “make partner” to law firm partners and senior lawyers. 

The larger law firms may also have various tiers of non-partner attorneys. These can include career associates, special counsel, and “of counsel” lawyers.

Of course, a law firm practice requires several employees who are not attorneys. These roles include administrative duties, legal assistants, managerial functions, law clerks, human resources, legal secretaries, paralegals, and accounting.
 

Law Firm Titles — A Brief Overview

There are typically three main roles in a law firm practice. First, an attorney with an of counsel position is not an associate or partner. They are highly trained but have no goal of becoming a partner. Non-equity and equity partners are highly driven and put in long hours. The difference is that equity partners are shareholders.

Let’s look in more detail at the specific role of attorneys. This information can help you decide the path for your legal career and what you hope to achieve.
 

What is an “Of Counsel” Attorney?

An attorney with an of counsel position has a relationship with the law firm but is not a partner or associate. These attorneys are good at what they do and have a lot of institutional knowledge. Therefore, they are valuable assets that are well-respected. Counsel attorneys can work in small legal practices and large law firms.

What types of attorneys like to have an of counsel position or role? Here are a few kinds of people that like working with prestigious law firms but who don’t want to become senior partners:

• Lawyers who want to avoid the high-pressure roles in most law firms.
• Older, experienced attorneys who do not have the energy to generate a lot of billable hours.
• Attorneys who lack sales and people skills.
• Attorneys who do not want to get involved in office politics.
• Lawyers who do not want to be responsible for a business generation as a law firm partner.
• Women returning to law practice after starting a family.
• Attorneys who have interests outside of law practice.
• Attorneys without business skills.

In essence, the role an of counsel lawyer plays is more than a senior associate but less than a partner. You could say they are independent contractors. Often, an “of counsel” attorney is highly experienced, reputable, and can earn a high salary. In many cases, they can earn as much as some partners.

Is Being an “Of Counsel Attorney a Good Career Choice?

For many graduates of law school and seasoned attorneys, aiming to get an of counsel position is a good move. However, it depends on what your long-term goals are. For example, some attorneys do not want to spend long, crazy hours in the office. Instead, they prefer to earn a bit less and enjoy a stable work-life balance.

Becoming an of counsel attorney is a good move if you want to specialize in areas of law that are typically less profitable for big law firms. Examples of these practice areas include patent protection, trust and estates, family law, bankruptcy, and trademark law. 

Suppose you are thinking of reentering the law profession. For example, did you leave the firm to start a family, or did illness affect your career? In that case, of counsel legal work is ideal. For example, some attorneys who left practicing law to become judges, politicians, or mothers choose to pursue an of counsel position in a legal firm. 

Deciding to pursue a career in the legal profession as an “of counsel” attorney comes down to lifestyle, choice, and career goals. Some attorneys love working in law but have no desire to become a partner. That is fine, and they are respected for their choice.
 

What is a Non-Equity Partner in Law Firms?

A non-equity partner is an attorney promoted from associate to a law firm partnership position. This role is typically the steppingstone from an associate attorney position to a full partner. Non-equity partners are expected to be highly motivated, driven, ambitious, and willing to work long hours. 

For many law students and graduates, making partner with one of the large firms is their ultimate goal. But, of course, becoming a partner means a huge jump in salary and a share of the partnership distributions. Therefore, getting non-equity status means your law career is going as planned. 

The position of a non-equity partner is relatively new. And not all law firms have a two-tiered partnership structure. Usually, it is easier to become a non-equity partner than a fully-fledged partner. Therefore, it is a good steppingstone in many firms for ambitious attorneys to further their law careers. Getting this type of role clearly signals you are on track for partnership. 

What Does It Take to Become a Non-Equity Partner?

Becoming a non-equity partner in a major firm requires hard work and many billable hours. However, there is more. Your work must meet the grade, be committed to the firm, and have a burning desire to continue working hard. 

Here is a list of what it takes to become eligible as a non-equity partner:

• Work with the same company for many years, usually around six to nine years.
• Have a solid track record of billing thousands of hours per year.
• Do an excellent job of impressing people.
• Be willing to make sacrifices to advance your career in law.
• Show you can bring new clients to the company.
• Have the desire to become a partner no matter what it takes.

Should You Become a Non-Equity Partner in A Law Firm?

Accepting a non-equity partnership role is an excellent choice if your goal is to become an equity partner. This usually means receiving a regular salary. However, it’s good to note that there is less job security as a non-equity partner. But if you show you are an asset, you will make the grade.

What It Means to Be a Non-Equity Partner

Being promoted to a non-equity partner usually means higher financial compensation, a nice office, and other company perks. However, along with the higher rewards come higher expectations. For example, you must generate business for yourself and junior and senior associates. This is not easy, and it takes a huge amount of drive to achieve.

It is good to note that law firms do not keep attorneys who are non-equity partners for many years. And large, prestigious law firms have high requirements regarding billable hours and the number of new clients you must generate. Additionally, there is tremendous competition among non-equity partners. 

What happens if you fail to meet expectations? The most likely scenario is that you are fired. Sometimes, you get a deadline of a year, six months, or even less. Unfortunately, this happens a lot. And it can be challenging for you because you have put in the hard work, made sacrifices, and enjoyed some success. 

Then the next thing you know, you must kickstart your legal career and find another job. This situation impacts your income and typically results in strained relationships with your partner. This is usually when divorces happen, and substance abuse and all sorts of negative things start. 

Options If You Do Not “Make Partner” In A Law Firm

There are several options if you lose your job as a non-equity partner. In my experience, each option has its pros and cons. What are your options if you do not get offered an equity partnership? Here are a few:

• Go in-house as it increases your chances of being an of counsel attorney.
• Start your own law practice.
• Move to a smaller firm, and the prestige of working in a larger firm can work in your favor. 

One of the issues with starting your own law practice is resources. Many attorneys who start on their own lack the funds and client base to continue a successful career. Therefore, you should plan well and get the best advice if you want to go alone and start a private practice.
 

What is an Equity Partner?

An equity partner is an attorney who owns part of the business and gets a share of the profits. The partner has made it to the top of their profession. They put in the long hours, generated business for associates, and billed thousands of hours per year to meet the requirements.

How Long Does It Take to Get Full Equity Status?

It can take six to nine years to progress from non-equity partnership to full partnership ranks. Usually, the path to becoming a senior partner is this. First, you start as a summer associate. Then, after working hard and showing your competence, you progress to associate, senior associate, non-equity partner, and finally, equity partner. 

What Does It Mean to Be an Equity Partner?

Being an equity partner means you have the respect of your peers, other attorneys, and subordinates. You take an active part in running the business and are partly responsible for its growth. Additionally, you must continue working hard, inspiring coworkers, motivating your team, and bringing in additional clients. 

Here is a list of some of the roles an equity partner could play in a legal firm:

• Take an active role in recruiting new attorneys.
• Take on several management responsibilities.
• Work at developing the company culture.
• Ensure hiring standards and work ethics are high.
• Take on a leadership role in the company. 
• Marketing and strategic growth planning.
• Set high standards for work to be an example to subordinates. 
• Be prepared to buy into the firm.

It is also important to remember that being a senior partner means you are responsible for any legal issues affecting the company. For example, you could be co-liable in a malpractice suit or other legal actions against the firm. And you may take a financial hit if the company is sued.

How To Become an Equity Partner

The only way to become an equity partner is to work hard. You must prove you are a top attorney who can be an asset to the organization. And being an equity partner means more than a ton of billable hours. It means taking an active role in running the law firm.
 

Law Titles in the Legal Industry — Of Counsel, Non-Equity Partner, Equity Partner

The meaning of law titles for attorneys is more than just academic. The titles define the type of career you can enjoy. Therefore, it is important to understand what is involved with each type of job in the legal industry.

For some younger attorneys, becoming an equity partner is their goal. However, the crazy hours involved may mean the goal is unachievable. However, their hard work and dedication pay off for other attorneys, and they reach their goal of becoming senior partners. On the other hand, many hard-working attorneys find that being an “of counsel” lawyer suits their work and lifestyle goals better. 
 

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