Help explain compensation for new law firm partners?

[Anonymous]

I'd assume a big part of the decrease in pay that you've heard about is the buy-in. As a partner (assuming he is, in fact, an equity partner) he'll own a share of the firm, and he needs to put down money to buy that share.

Add to that the fact that the bigger monthly distributions for the partners tend to be pushed to the end of the year, when collections increase, your monthly take-home pay, especially at the beginning of the year, will be less than it was at the end of last year.

On another note, get a good accountant. You'll need to start paying estimated taxes quarterly.

[Anonymous]

OP here - yes, equity partner. Apparently that is the only option at his firm, just didn’t know that when I made the original post. Thanks for all the replies, very informative!