Partners in the amlaw200 at firms that pay market base salary and bonus with 100-150 hours over billable target, is it worth it to be partner? I’ve heard that your tax bill is insane (one of the newer partners at my firm owed over 6 figures in taxes) and you actually make less than you would as a senior associate until you make equity partner. Just seems like another carrot to get you to stay and grind out a few more years to reach equity…

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I mean it sounds like that partner messed up their taxes. Spoiler I think all big law attorneys (at least midlvl and up) pay over 100k in taxes a year.

likefunny

This, 100%. They didn't do their homework.

Candidly, it's not worth it *at first*, *on paper*. Take home has gone down a bit, for reasons stated. But, I don't stress about billable hours as much (and bill quite a bit less) and love building a book of my own clients, because I like the people and the work. And you have a shot at equity in a few years. So if you're happy, love your job, and don't mind looking at the ceiling, don't do it. Like anything, if you're going to do it, it's best to know why you're doing it first.

Also. have to consider if your firm actually keeps people around if they don't make partner. Job security is a little different for counsel.

likehelpful

It is worth it in the long run. The first year or two can be challenging moving from a W-2 getting full pay twice a month to getting monthly distributions of some percentage of your share and having to pay quarterly estimates. Your quarterly estimates are based off of 110% of your prior year’s earnings, so if you make a big bonus your last year as an associate or counsel, you can sometimes find yourself paying quarterlies on an artificially high number. However, if you can get past the liquidity issues the first year or so, you end up making much, much more. There also are plenty of capital loan programs that will help cover the gap, if needed. I like to think of it as mild pain for an enormous gain.

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This sounds exhausting and I’m tired of the pain anyways lol

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How exactly would you make less money with a pay raise?

The first year is crazy because you don't know what to expect.

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