Can Accounting Firms Have Law Firms, Too ?

I recall very well the absolute fence that existed between law firms and any other firm that might have been tied to a given law firm, where the related firm could “improperly” and effectively help advertise for the law firm to gain clients.  Such actions were taboo and absolutely prohibited by the Legal Canons of Ethics which impacted law firms.

If a firm tried to practice law and accounting in violation of these Ethics and standards, a lawyer could lose his or her license to practice law.  Now, contrary to this position, law firms advertise on billboards, buses, TV, and numerous other locations.

Why think about this today, when my recall on this issue goes back over 50 years, when I started practicing law? 

The answer is simple:  Times have changed.  Law firms, directly or indirectly, have been allowed to advertise for clients.  This position has existed for many, many years.   

But what has more recently developed are settings where accounting firms are setting up their own law firms.

Recently the Wall Street Journal published an article by reporter Mark Maurer on this topic.  (March 3, 2025).  In this article, Mr. Maurer noted that the Big Four accounting firms (international) have begun to practice law in connection with their firm.

Specifically, KPMG, one of the Big Four, set up a law firm after the Arizona Supreme Court allowed the firm to obtain a license for KPMG Law.  Of course, there are various restrictions on such practice.  The Law practice must be undertaken by lawyers when the action is deemed the practice of law; in such instance, a license for the same is necessary.  Thus, attorneys at KPMG will be doing this law work.

Mr. Maurer also noted that this practice is not new in many countries outside of the US.  He noted that KPMG already is practicing law in about 80 countries in the world, including, for example, in the U.K.

Another restriction on KPMG and its practice of law is that the firm cannot practice law for a client where KPMG is also doing the audit work.

Interestingly, KPMG is not the first firm in Arizona to receive such approval for the law license when a firm is connected to an accounting firm.

Accounting firms have reached out in other areas, too.  For example, the appraisal field is another area where accounting firms have been active in generating business.

Look for more law firms and accounting firms to overlap in their practices, especially when many accounting firms have lawyers in their firm and many law firms have accountants in their firms.

By

Dr. Mark Lee Levine, Professor, University of Denver