LLC Legal Zoom: Arizona at the Forefront of Law Firm Ownership Reforms

The state of Arizona has taken a significant step forward in legal innovation, clearing the way for non-lawyer ownership of law firms and paving the path for collaborative business models. This reform effort aims to bring innovative solutions to market that can benefit both small businesses, consumers, lawyers, and other stakeholders.

According to Nicole Miller, LegalZoom's general counsel, 'These reform efforts create opportunities to bring innovative new solutions to market that can benefit both small business and consumers as well as lawyers, and we encourage other states to pursue similar reforms.' This sentiment reflects the excitement surrounding the changes in Arizona, which has taken a leading edge in implementing or considering modifications to rules governing law firm ownership and fee sharing.

In August 2020, the state's high court scrapped a rule that barred non-lawyer ownership of law firms, effectively clearing the way for co-ownership of businesses offering legal services through Alternative Business Structures (ABS) arrangements. This move is expected to unlock new opportunities for entrepreneurs, lawyers, and consumers alike.

Arizona's forward-thinking approach has positioned it as one of the leading states in implementing or considering changes to rules that govern law firm ownership and fee sharing. As the legal landscape continues to evolve, it will be fascinating to see how this reform effort shapes the future of the industry.

Llc legal zoom