Help! I’m being made a partner at my small firm. I was told it would be effective June 1, and some benefits started then, but still no signed agreement or anything in writing. All other partners are currently out of the country on vacation. Yesterday I got an email from the payroll company informing me that I’m now going to be paid as a 1099? Is this normal to get a 1099 as a partner? I thought it would be a combo of w-2 and k-1? Im supposed to be getting 10% equity. Feeling clueless.

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Welcome to the world of small firms that just do what they want.

I left a prior firm because they couldn’t produce an agreement to describe anything about what being a partner actually amounted to, how I would be paid, whether I would have an ownership interest, etc. I don’t work on verbal promises. I don’t trust anyone that much.

I was the first potential partner at the solo owned shop. I even drew up a template for the agreement at the owner’s request and said “fill in the parts where I have no idea what you want, but here are some suggestions” and that was not enough.

Good luck and consider opening your own firm at this point.

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I was offered an associate position while a law clerk at a small firm and had the same thing happen. Compensation, billable hours and benefits kept changing and nothing was put in writing even though I asked. I didn’t come back after my post-grad trip. The youngest partner cried on the phone when I told him I wasn’t coming back. 😬

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get paperwork

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No, that’s not normal. Have your new partners been out of the country for a month? Why is it taking so long to get you these docs?

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Because they’re idiots? I don’t know, why are you?

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Maybe the payroll company simply misspoke. You’ll get a K-1.

Yes, it needs to be a K-1.

As others have said, a 1099 wouldn’t be proper here. They should be reporting your income on a K-1.

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