Recession forces change in practice structures
Peter Garry of Cripps Harries Hall LLP explains how adopting a new practice structure can help accountancy firms weather the ‘boom and bust’ economic cycle.
Although many accountancy and other professional practices have converted to an LLP structure, most have retained the model of full distribution of annual profit. While some practices still adhere to valuation and sale of goodwill on retirement, this appears to be on the wane in the accountancy profession.
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hybrid structures
We considered the use of a hybrid structure within our practice (LLP with Ltd partner)but were told by the bank that we would have to operate the office bank account in credit because in their view it was illegal to operate any other way!
Anyone else had this issue and got around it?