When Is It Time to Shift Your Firm from Partnership-style to Corporate-style Governance?

Which is best for your firm?

By Marc Rosenberg
Author of “CPA Firm Management and Governance.” 

CPA firm management styles generally fall into two categories:  partnership and corporate. For the sake of argument, let’s use the terms “partnership” and “corporate” to describe management styles, rather than legal entities such as partnership, corporation, LLC, etc.

Marc Rosenberg

Marc Rosenberg

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In this article, we’ll:

  • Define each style
  • Compare the two styles’ pro’s and con’s
  • Explain the concept of “rights”
  • Explain the key duties of a partner in a corporate-style firm
  • When a firm needs to think about shifting from partnership to corporate

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