Informal Opinion Number: 950097

QUESTION: The firm is contemplating setting up a subsidiary law firm that would practice exclusively in a particular area of the law. The subsidiary would be a separate entity with a different name, address and management. All profits would flow through to the parent firm. The lawyers working for the subsidiary would hold themselves out as employees of the subsidiary, not the parent. ANSWER: The arrangement would not violate any provision of the Rules of Professional Conduct. However, all communications about each firm, would have to disclose the relationship with the other firm. Additionally, all conflicts of interest of each firm would be considered conflicts of both firms.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

To request an Informal Opinion, please visit: http://mo-legal-ethics.org/for lawyers/requesting-an-informal-advisory-opinion/.

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