Law firm partnerships don't last forever. At some point, by choice or by fate, a partner's interest needs to be bought out. How that buyout is structured can have enormous tax implications for the partnership, the exiting partner, or both. Before agreeing to buyout terms, find out what your partnership is up against. This article explains the tax saving opportunities, as well as the tax pitfalls.

In contingency fee lawsuits, an unfortunate fact of tax law is that the winner is sometimes the loser. Clients often don't realize that they might be taxed on your contingent fee even though you get the money instead of them. A 2004 tax law helps in certain cases and there may be advance planning techniques your clients can employ in other cases. For a rundown of the current situation, click "Full Article."

Switching from C corporation to S corporation status might be a smart move for your law firm in the long run. But advance planning is important. Otherwise, you may be hit with unintended consequences in the form of built-in-gains tax. Click "Full Article" for details on how a C-to-S conversion can be affected by contingent fees your firm receives.