Why Your Law Firm Isn’t Anywhere Near As Profitable As You Think Chris Johnson, The Am Law Daily October 6, 2017 | 4 Comments share share on linkedin Facebook share on twitter share on google+ Share With Email Send Thank you for sharing! Your article was successfully shared with the contacts you provided. reprints Conventional metrics significantly overstate law firm profitability. This premium content is reserved for The Recorder subscribers. Continue reading by getting started with a subscription. Subscribe Now for Unlimited Access Already a subscriber? Log in now VIEW COMMENTS ( 4 ) ADD COMMENT What's being said Sign In Terms & Conditions Bruce C. Lyon Oct 09, 2017 While not a measure of profitability per se, I favor gross revenue per full time equivalent attorney as least susceptible to differing interpretations. WALTER LEE DAVIS JR Oct 09, 2017 As an Attorney and CPA (now retired), I enjoyed your article and agree that changes should be made as you suggest. It would be hard to get firms to agree on exactly how it should be done since it is really no one‘s business except each firm‘s with respect to its own accounting. Guaranteed payments are those made by a partnership to a partner that are determined without regard to the partnership‘s income. A partnership treats guaranteed payments for services, or for the use of capital, as if they were made to a person who is not a partner. This treatment is for purposes of determining gross income and deductible business expenses only. For other tax purposes, guaranteed payments are treated as a partner‘s distributive share of ordinary income. Guaranteed payments are not subject to income tax withholding. The partnership generally deducts guaranteed payments on line 10 of Form 1065 as a business expense. They are also listed on Schedules K and K-1 of the partnership return. The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership‘s other ordinary income. WALTER LEE DAVIS JR Oct 09, 2017 jermiebancoco is simply advertising s trading service, not commenting on the article His comment had no place here jermiebancoco Oct 09, 2017 Enjoying life in the other side of the world! Since I started trading and quitting my day job I now am enjoying what I love the most, travelling! I can be at any part of the world and still make income. This is all made possible because of trading. Learn how to trade with the help of Superior Trading System. Google them and start your journey now. Comments are not moderated. To report offensive comments, click here. Preparing comment abuse report for Article #1202799861132 Send Thank you! This article's comments will be reviewed.