Why don’t more law firms use trade names? While doctors and other professionals have been using them for years, it still has not caught on with lawyers.
Historically, ethical rules have prohibited or severely limited lawyers using trade names. While the ethical rules have been relaxed, lawyers have been reluctant to take advantage of the obvious benefits. Why is this?
Is it ego that deters lawyers from using a trade name? Does a lawyer, especially an established lawyer really need his or her name in the firm name? How many arguments have resulted within firms over who should be a named partner or which order should the partners be listed? Using a trade name completely eliminates these issues. Not only is there less friction between named partners and unnamed partners, but there is no longer a clear dichotomy between “partners” and “associates.” Moreover, the letterhead and signs no longer need to be changed whenever there is a partnership change.
Just as important, any lawyer can create goodwill in a law firm that does not bear his or her name. Attorney John Doe would find it difficult to sell or transfer his goodwill when he decided to retire. It’s far easier to transfer ones goodwill to an entity. If attorney Smith develops his practice under “Acme Law Group” rather than Smith law group, his chances of developing goodwill distinct from his name is increased. Further, while there may be a Smith Law Group in every city a unique trade name that identifies a lawyer by a geographic location or specialty results in better search engine results.
This blog has been presented by Pecos Law Group and there is no Mr. or Mrs. Pecos.