FAQs
Where can I find information about setting up and maintaining escrow accounts?
Information about the New York State Interest on Lawyer Account Fund (“IOLA”) is maintained by the state at this website. The IOLA program requires attorneys to maintain special interest-bearing trust accounts for “qualified funds.” The attorney page is here. The relevant laws including the IOLA regulations and Rules of Professional Conduct are here. The NYSBA publishes the guidebook Attorney Escrow Accounts on how to handle escrow funds. Free resources are available at The Lawyers’ Fund for Client Protection.
How do I get help for an ethics question?
We have an ethics hotline with volunteers from the Professional Ethics Committee. Lawyers can connect with the hotline through our customer service line 212-382-6623. Learn more about the ethics hotline.
What type of business entity should my firm be?
Consultation with an accountant is often the first step in determining the appropriate business entity for your firm. You will want to take into consideration the tax consequences as well as liability issues attendant to the proposed entity.
Generally, if you are a sole practitioner, you may practice as a sole proprietor (check local requirements about filing a business certificate with the County Clerk’s office); a single member Professional Service Limited Liability Company (“LLC” or “PLLC”) (review the N.Y. Limited Liability Company Law for legal requirements and procedure, and N.Y. State Department of State website for filing information and forms; or a single member Professional Service Corporation or “PC” (review the N.Y. Business Corporation Law for legal requirements and procedure, and N.Y. State Department of State website for filing information and forms.
If there are two or more attorneys involved, they may practice as partners (check local requirements about filing a business certificate as well as the N.Y. Partnership Law); in a professional Limited Liability Partnership (“LLP” or “PLLP”) (review Article 8-B of the N.Y. Partnership Law for legal requirements and procedure, and N.Y. State Department of State website for filing information and forms; in a professional Limited Liability Company (“LLC” or “PLLC”) (review the Limited Liability Company Law for legal requirements and procedure, and N.Y. State Department of State website for filing information and forms; or in a PC (review the N.Y. Business Corporation Law for legal requirements and procedure, and N.Y. State Department of State website for filing information and forms.
Where can my firm find or advertise available office space?
One great place to look is the Association’s Free Member Postings (Association members only). You may also respond to ads in a newspaper’s classified section, such as the New York Law Journal, or work with a broker to find space. Of course, letting your colleagues know that you are looking for space is also very helpful. They may know about unadvertised available space!
Where do I find information about malpractice and other types of insurance?
The first place to look for information is the Association’s website (www.nycbar.org). Visit Benefits of Membership or go to the Insurance Programs link for the insurance services provided by Lockton.
