Cpa/law Firm

[Nefin]

I'm starting to notice firms operating as more than a CPA firm.  I'm noticing successful firms offering full-service financial needs for both business and personal concerns.  Much of their work is that of a typical CPA firm, but these hybrid firms don't limit themselves to taxes, auditing, and such.  They do the same things a Merrill lynch is able to, except they do not have their own brand to push.  They are objectively advising.  They also deal in insurance.  Carrying on with such a trend from CPA firm to full service firm, do you think a law firm could be successfully incorporated in one of these firms?  Is it me or do attorneys and CPAs not seem to take advantage of the potential in bringing their services all under one roof?  It seems to make perfect sense to me, but I’m possibly missing a piece to this puzzle.  What do you think of such a firm all under one roof?  Also, the attorneys would not have to be limited to tax matters, estates, wills, and trusts.  Let me know your thoughts.

[Azarlah]

In some other countries, accounting firms do, in fact, practice law through wholly-owned law firms.  In the United States, rules of professional conduct and, in most cases, state statutes, expressly prohibit anyone other than lawyers practicing law.  The details vary from state to state, but no states to my knowledge would allow an accounting to provide legal services, even though the employees performing the work are licensed attorneys.  Some CPA and law firms have formed affiliations that do not include cross-ownership, though I am not certain that the results have been up to expectations.

Even if it were permitted, the conflict of interest rules for attorneys and accountants would be a frequent source of problems.

In general, certain types of full services firms may make some sense, but I am concerned that it would be more difficult, if not impossible, to make sure that the legal services were still being performed by licensed attorneys.  Even with the current rules, I am aware of some CPAs who have performed services for their clients that come very close to practicing law, if not actually crossing the line.  Over the years, I have seen accountants incorporate businesses, organize limited liability companies, and assist clients in structuring business acquisitions, all without alerting the  client to the fact that there are legal issues beyond the pure accounting and tax issues.  I have also seen accountants and other financial advisors who have developed full-blown estate plans and basically told the client that all they needed a lawyer for was to draw up the documents.  If all the services were performed under one umbrella, policing who is performing the services would be problematic.