Law firm leaders face a unique set of circumstances in running their business, creating unique challenges when it comes to tax planning and compliance. Most law firms are set up as pass-through entities, requiring additional considerations when tax planning as the tax bill is paid by the firm’s owners. From determining the employment classification of ‘of counsel’ attorneys, dealing with remote work issues for both lawyers and support staff, to navigating apportionment rules for income derived from clients across states and more, leaders must understand law firm tax strategies and regulations.

Check out our Law Firm Tax Hub below with specialized content relating to the four major tax issues in the industry for information to help you and your firm.

Ready to speak to a member of our Law Firm Services Team now? Contact us here.

courthouse and money

Should Law Firms Make Pass-Through Entity Tax Elections?

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growing money

SECURE Act 2.0 Would Expand Incentives for Employer Retirement Plans

The SECURE 2.0 Act improves the credit for pension plans established by small employers. Law firms with less than 100 employees are encouraged to take advantage.

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law firms

Determining Law Firm Employee Classification Through the ABC Test

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Pass-Through Entity Tax Information for Law Firms

new jersey legislation

New Jersey Legislation Implements Major Tax Changes, Including Market-Based Sourcing for Partnerships

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Iowa Enacts Pass-Through Entity Tax

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new york city

Major Changes to New York’s SALT Workaround as Part of FY23 Budget Bill

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Taxation of Remote Work Information for Law Firms


Supreme Court Denies Cert. in New Hampshire v. Massachusetts

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New Jersey To Cease COVID-19 Telecommuting Tax Relief

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hybrid work

Tax Implications of Interstate Remote Work for Law Firms

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Employee Classification Information for Law Firms

1099 Filing Season is Upon Us – What You Need to Know

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De-Constructing Worker Misclassification

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Proposed New Jersey Legislation Moves Toward the Classification of Independent Contractors as Employees

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Market Based Sourcing Apportionment Information for Law Firms

legal scales

Market Based Sourcing Rules for Law Firm Income Apportionment

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state and local taxes

Year-End State and Local Tax Planning Perspective

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NYC Tax Savings

Businesses Look for Opportunities on New York City Taxes as City Faces a Fiscal Doomsday

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Interactive PTET Map

In response to the TCJA’s $10,000 SALT Cap, many states have enacted pass-through entity taxes as a workaround. This map shows which states have enacted PTETs, which states have historic taxes on pass-through entities that are effectively PTETs, and which states have not enacted PTETs.

  • State has a PTET
  • State does not have a PTET
  • State does not have a personal income tax
  • State has an entity level business tax

Click on the map to view PTET information by state.


William E. Sansone


Red Bank, NJ

Jonathan Weinberg


Los Angeles, CA

Tax Solutions for Your Law Firm

Tax planning is essential in maximizing operating efficiency and maintaining a profitable practice. Withum’s seasoned state and local tax experts provide bespoke advice, helping your law firm identify opportunities, manage risks and plan for the future.

Contact us to schedule a consultation with our law firms tax specialists.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.

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