Managing your firm's finances should not feel harder than practicing law. Many attorneys still struggle with billing, bookkeeping, and trust account rules. Retainers create extra steps. Matter-based billing adds more detail to track. Trust requirements leave little room for mistakes. Small gaps can turn into big problems.

QuickBooks is a popular tool for small businesses. Many law firms use it too. Law firm accounting has special needs, though. Trust accounting and legal billing often require more structure than QuickBooks provides on its own.

This guide breaks down what QuickBooks can do for a law firm. It also explains where the limits show up. You will learn what setup matters most and when add-ons or legal software may be the better choice.

Main Takeaways

• QuickBooks can handle basic accounting, but law firms have extra compliance needs. You need to know what QuickBooks can't do before you rely on it.
• QuickBooks Online is usually the better fit for law firms. It's easier to access remotely and works with more legal software.
• Trust accounting is a common gap with QuickBooks. Most firms need a legal tool or workflow to stay compliant.
• Matter-based billing and reporting often require extra setup or integrations. Otherwise, teams end up doing more manual work.
• Most firms use one of three setups: QuickBooks alone, QuickBooks + legal tools, or an all-in-one platform like Centerbase. As firms grow, fewer systems usually means fewer errors.

What Is QuickBooks?

QuickBooks is accounting and billing software made by Intuit. It is used by many small businesses, including some law firms. QuickBooks helps track income and expenses. It can also help manage invoices and payments.

Intuit offers two main versions of QuickBooks. QuickBooks Online is cloud-based and can be accessed from anywhere. QuickBooks Desktop is installed on a computer or server. Features vary by plan, but many versions include:

• Invoicing
• Expense tracking
• Payment collection
• Payroll support

QuickBooks Online vs. Desktop for Law Firms

QuickBooks Online lets you log in from anywhere. It updates automatically and can connect to bank feeds. Many legal tools also connect more easily to QuickBooks Online. This makes it a common choice for firms that use practice management software.

QuickBooks Desktop runs locally on a computer or server. Some firms use it because they have older systems or prefer local control. Remote access can be harder, though. Integrations can also be more limited.

Most law firms choose QuickBooks Online because it is more flexible. It also gets regular updates and works well with other modern tools.

Discover More Legal Accounting Terms Confused by legal accounting jargon like IOLTA, retainer reconciliation, or three-way trust accounting? Visit our glossary to learn the terms every law firm needs to manage finances compliantly and confidently. Explore the Legal Business Glossary

Required QuickBooks Setup for Law Firms

To use QuickBooks properly, you need to customize your setup. Legal accounting requires more than tracking income and expenses.

• Legal chart of accounts: Create separate accounts for trust (IOLTA), client funds, and operating expenses. This setup keeps client money separate from firm money.
• Client and matter tracking: Track transactions by client and matter. Use the Classes or Projects feature for this. Many firms also connect QuickBooks to legal practice management software.
• Bank account connections: Connect your operating account and your trust/IOLTA account. Bank feeds can reduce manual entry and help you spot errors faster.
• User roles: Set permissions for each user. Limit trust access and accounting changes to the right people.
• Reconciliation schedule: Pick a consistent schedule for reconciliations. Follow your jurisdiction's rules and your firm's internal controls.

QuickBooks Capabilities for Law Firm Accounting

QuickBooks can cover many accounting basics for a law firm. Legal work adds extra steps, though. QuickBooks works best when the setup is clear and consistent. Many firms also use legal tools for trust, timekeeping, and matter reporting.

1. Trust Accounting Support (IOLTA)

Trust accounting is a compliance requirement for many law firms. Many firms use an IOLTA account for client funds. QuickBooks can record trust transactions. QuickBooks is not a dedicated trust accounting system.

QuickBooks does not include built-in safeguards that many firms need for trust work, such as:

• Client-level trust ledgers that are automatically enforced
• Guardrails that prevent overdrawing a specific client's trust balance
• A single, built-in three-way reconciliation report

Trust accounting requires three balances to stay aligned:

• Trust bank balance
• Trust account balance in your books
• Each client's trust ledger balance

Trust problems can happen fast. Mixing trust funds with operating funds can create major risk. Missing client-level tracking can also lead to compliance issues.

Did You Know? Law firms in the U.S. are required to reconcile trust accounts monthly and keep records by client. QuickBooks alone can't enforce these rules, but integrations and legal-specific platforms can.

2. Time Tracking and Expense Allocation

Billable time and reimbursable expenses should tie to the right client and matter. Clean records support accurate invoices. Clear records also support better reporting.

QuickBooks Online supports time tracking and billable time. Many firms use it for basic billing inputs. Legal billing workflows can be more complex than QuickBooks is built to handle. Many firms add a legal timekeeping or practice management system for that reason.

Firms often choose this approach because it can support:

• Matter-based time entry and expense capture
• Cleaner billing workflows (including approvals and edits before invoices go out)
• More control over how timekeepers, matters, and billing rules connect

QuickBooks can still play a role in the process. Many firms map clients and matters to Customers and Projects. Consistent naming also helps reduce cleanup later.

3. Tracking Client Costs and Matter Profitability

QuickBooks can track expenses and report on profitability. Law firms need a clear method for assigning costs. Good cost tracking helps with billing. Good cost tracking also shows what each matter costs the firm.

Many firms separate case expenses into two groups:

• Hard costs: Payments to third parties (filing fees, court reporters, expert witnesses)
• Soft costs: Internal costs you may pass through (copies, postage, internal admin time)

Costs should be assigned to the correct client and matter. Projects can help with this. Synced matter data can help too. This approach helps you:

• Bill clients accurately
• Avoid missed reimbursable expenses
• Understand which matters are actually profitable

QuickBooks can show profitability at a project level. Many firms also want deeper matter reporting over time. Law firm reporting often includes billing changes, collections, and matter performance.

4. Billing and Invoicing Flexibility

QuickBooks for law firms supports flexible invoicing and can be used for:

• Hourly billing
• Flat fees
• Retainer-based recurring invoices
• Invoicing tied to different client arrangements

QuickBooks also lets you customize invoice templates. Recurring invoices can help you stay consistent month to month.

Where firms often hit limits is when billing needs to connect to legal context automatically—like matter records, trust balances, and more structured approval steps. In many cases, those workflows require a legal practice management platform integrated with QuickBooks (or an all-in-one legal system).

5. Integration With Legal Practice Tools

Most law firms don't use QuickBooks alone. Many firms connect QuickBooks to legal tools for daily work. Legal tools often cover matters, timekeeping, billing, and trust processes.

Good integrations can reduce duplicate entry. Clean syncs can also improve accuracy. Common items that sync include:

• Client and matter data
• Time entries and expenses
• Invoice details and payments
• Trust activity and client ledger tracking (depending on the system)

QuickBooks Projects can help keep records organized. Projects work best with consistent naming. Many firms link Projects to clients and matters. Legal tools can make that connection easier.

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Potential Limitations of QuickBooks for Lawyers

While QuickBooks for legal firms is widely used, it has several limitations for law offices:

• No built-in trust accounting safeguards: QuickBooks does not enforce three-way reconciliation or prevent you from overdrawing client trust balances.
• Limited matter-level tracking: You can't easily tie every transaction to a specific case unless you use additional tools.
• No retainer or settlement workflows: QuickBooks doesn't handle retainers or settlement disbursements without manual work or integrations.
• Reliance on add-ons: Many critical legal workflows require third-party apps or integrations.
• Basic reporting: QuickBooks offers standard reports, but not law firm KPIs like realization rates or attorney productivity.

These gaps are why many firms either add legal-specific tools to QuickBooks or move to an all-in-one platform built for law firm operations.

Legal Practice Management Software vs. QuickBooks: What Law Firms Should Use

Legal practice management software is built specifically for law firms, so it supports workflows that general accounting tools weren't designed to handle.

Instead of treating legal work like a standard small-business transaction, these platforms connect financial work to how law firms actually operate, including:

• Matters and clients (so billing ties back to the case)
• Timekeepers and time entries (so invoices reflect billable work accurately)
• Trust activity (so client funds and compliance requirements stay visible)
• Most legal platforms also support legal-specific billing needs and internal controls, such as:
• LEDES billing for clients that require it
• Alternative fee arrangements like flat fees, contingency, or hybrid models
• Structured invoice review and approvals before bills go out

This becomes even more important as your firm grows and complexity increases. When trust activity rises, billing gets more layered, and leadership needs clearer visibility into matter performance, QuickBooks alone can start to feel like the wrong foundation.

When billing, matters, payments, and reporting live in one system, you can reduce double entry and minimize reconciliation headaches. You also get stronger reporting, so you can connect financial performance to:

• Specific matters
• Timekeepers
• Clients
• Practice areas

Common Legal Accounting Stacks for Law Firms

Most firms end up in one of three setups: QuickBooks alone, QuickBooks paired with legal-specific tools, or an all-in-one legal platform. The table below shows how feature support typically changes across those approaches.

How Common Law Firm Accounting Stacks Compare

Feature	QuickBooks Alone	QuickBooks + Legal Integration	Centerbase (All-in-One)
Trust Accounting	Manual/Not Native	Available	Built-In
Time Tracking	Basic	Improved	Advanced
Matter Management	No	Limited	Built-In
Legal Reporting	Basic	Some	Advanced

1. QuickBooks + Legal Billing or Trust Add-Ons

Some firms use QuickBooks for firm accounting, then add a legal billing or trust tool to handle compliance workflows QuickBooks doesn't cover. This can be a practical bridge for smaller firms that want to keep QuickBooks while adding basic legal safeguards. The trade-off is managing two systems and ensuring client/matter data stays aligned across both.

2. QuickBooks + Full Legal Practice Management Software

Other firms use legal practice management software for matters, timekeeping, billing workflows, and trust activity, then sync key financial data to QuickBooks Online for general ledger reporting. This setup adds matter-level structure and better billing control while keeping QuickBooks as the accounting system of record. The trade-off is integration oversight and occasional reconciliation between platforms.

3. All-in-One Legal-Native Financial Platforms

Some firms move to a single legal-native platform, like Centerbase, that combines accounting, billing, trust management, and reporting in one system. This reduces duplicate entry and provides more consistent matter-based visibility across the firm. The trade-off is switching systems, but day-to-day operations are typically simpler once implemented.

Five Best Practices for Using QuickBooks in a Law Firm

Even with proper setup, you get the most value from QuickBooks for attorneys by following consistent accounting and compliance habits.

• Choose the right plan: Select a QuickBooks plan that supports your firm's size and complexity, and upgrade as you grow.
• Monitor automation: Regularly check your bank feeds and rules for errors; trust account transactions should be reviewed closely.
• Separate duties: Assign different people to enter transactions, approve payments, and reconcile accounts to prevent errors and fraud.
• Reconcile monthly: Always reconcile both your operating and trust accounts at least once a month.
• Work with a legal accountant: A legal accountant can help you set up trust workflows, reconciliation habits, and reporting that hold up under audit.

Use reporting to watch trends in your firm, such as outstanding balances and cash flow, not just basic profit and loss statements.

Who QuickBooks Is Best for and When to Outgrow It

QuickBooks is a good fit if your firm is small, has straightforward accounting needs, and uses integrations to support legal workflows. It can work well when you primarily need:

• Basic bookkeeping and financial reporting
• Simple invoicing
• Payroll and expense tracking
• Light trust activity that's managed carefully with supporting tools

But as your firm grows, QuickBooks often requires more work to keep everything aligned—especially if you're dealing with higher trust volumes or more complex billing workflows.

You'll usually feel the shift when your team starts duplicating work across systems, like:

• Entering time in one tool, then rebuilding invoices in another
• Reconciling payments in a separate system from billing
• Manually checking trust balances to avoid compliance issues
• Troubleshooting sync errors or mismatched data between tools

Expansion adds pressure, too. If you're adding practice areas, staff, or locations, it gets harder to standardize how your firm handles:

• Billing workflows and approvals
• Reporting and performance tracking
• Trust processes and compliance checks

When you spend more time managing integrations than serving clients, it's time to consider an all-in-one legal platform.

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Streamline Legal Accounting With Centerbase

QuickBooks for law firms can work with the right setup and integrations, but relying on multiple tools creates complexity and increases the risk of errors.

Centerbase gives you a single platform for legal billing, accounting, trust management, and reporting. You get built-in compliance features, matter-based tracking, and the ability to manage your entire firm's finances in one place.

Legal practice and management software designed for optimal efficiency and profitability. The Center of your firm. The Base of your success. Get a free demo.

FAQs About QuickBooks for Lawyers

What is the best accounting software for law firms?

The best software depends on your firm's size and needs. Many small firms use QuickBooks for basic accounting. Many firms add legal tools to help with trust tracking and billing. Some growing firms choose legal software that includes accounting, billing, and reports. Centerbase is one option that brings these tools together in one platform to reduce manual work and support compliance.

What accounting software do most law firms use?

Many law firms use QuickBooks with legal practice management software. Some firms use an all-in-one legal platform, like Centerbase. That setup can cover accounting, billing, and compliance in one place. Many firms choose this to reduce extra tools.

What database do attorneys use?

Many attorneys use the database inside legal practice management software. These systems store client and matter details. These systems also store billing and documents. Many firms move away from standalone databases over time. Many firms prefer one system for both legal work and business data.

You've probably heard lawyers talk about "making partner" as if it's the holy grail of a legal career, but few ever explain exactly what that means. What does it mean to make partner at a law firm, and why do so many attorneys chase this title?

If you've ever wondered what it takes to reach that level, and what changes when you do, you're about to get clear answers. Here's your guide to what it means to make partner at a law firm.

Main Takeaways

• Making partner means you become a leader, not just a lawyer. You take on more responsibility for clients, teams, and results.
• Partner titles can mean different things at different firms. You should ask how your firm defines equity, pay, and decision rights.
• Firms promote lawyers who help grow the business. Client development, client trust, and strong performance matter most.
• Partnership comes with benefits and trade-offs. You may gain more influence and income, but you also take on more pressure and risk.
• Preparing for partnership takes planning over time. You can build your case by tracking metrics, leading projects, and learning firm economics.

What Does It Mean to Make Partner at a Law Firm?

A law firm partner is a senior attorney who holds an ownership stake in the practice and helps direct its strategy, finances, and growth. When you make partner, you transition from being an employee to becoming a part-owner of the firm who shares in profits, decision-making, and leadership responsibilities.
The role combines practicing law with running the business side of the firm. You're responsible for bringing in clients, managing teams, and ensuring the firm stays profitable.

Where Partner Fits in the Law Firm Career Ladder

Most attorneys start as associates, focusing on legal work and skill development. As you gain experience, you may advance to senior associate or counsel roles that involve more responsibility but no ownership stake.

Partner is often the next major step. The role usually comes with more leadership and business responsibility. The exact titles and expectations can vary by firm.

Here is a common career path:

• Associate: Entry-level attorney learning the practice.
• Senior Associate: Handles complex matters and mentors junior lawyers.
• Counsel/Of Counsel: Specialized or experienced attorney, often not on a partner track.
• Partner: Senior role with greater responsibility (ownership and structure vary by firm).
• Managing Partner: Firm leader focused on operations and strategy.

Quick Tip: Ask your firm how they define each role. The same title can mean different things at different firms.

Learn the Business Side of Law
Making partner means becoming part of the business—not just practicing law. If you're interested in understanding legal operations, leadership, and firm economics, explore our glossary of essential legal business terms.
Visit the Legal Business Glossary

Types of Law Firm Partners

There are several types of law firm partners, each with different responsibilities and compensation structures.

Equity Partner

Equity partners are owners of the firm. They invest capital and share in profits and losses. These partners vote on major firm decisions and help set long-term strategy. Their compensation usually depends on a mix of performance, seniority, and client origination. Equity partners also carry more financial risk.

Non-Equity Partner (Income Partner)

Non-equity partners hold the partner title without ownership. They often manage clients, lead teams, or oversee practice areas. Compensation is typically salary-based with performance bonuses. This role can be a long-term position or a step toward equity, depending on the firm.

Managing Partner

A managing partner oversees firm operations and strategy. Responsibilities often include budgeting, hiring, growth planning, and governance. Managing partners usually bill fewer hours. Their focus is leadership and decision-making rather than daily legal work.

Senior Partner

Senior partners are highly experienced attorneys with strong influence. They often mentor younger lawyers and manage key client relationships. Some senior partners hold equity, while others serve in advisory or legacy roles. Their responsibilities depend on the firm's structure and succession plans.

Practice Group Partner

Practice group partners lead a specific area of law, such as litigation or family law. They manage staffing, budgets, and performance for their group. This role blends legal work with leadership. Practice group partners play a key role in growth and consistency within their specialty.

Capital Partner vs. Non-Capital Partner

Some firms distinguish partners by capital contribution. Capital partners invest money to secure ownership and voting rights. Non-capital partners may hold the title without making a financial investment. Profit sharing and influence can differ between the two.

Important note: Titles vary widely across firms. Always ask how your firm defines ownership, compensation, voting rights, and expectations for each partner role.

How Law Firm Partnerships Work

Law firm partnerships are structured around how profits, decision-making, and responsibilities are divided. The model your firm uses affects everything from your compensation to your daily duties.

Lockstep Partnership Model

In the lockstep model, partners' legal compensation increases based on seniority. Everyone's pay grows as they spend more time at the firm, which builds loyalty and stability.

Eat-What-You-Kill Model

The eat-what-you-kill model rewards lawyers and partners based on the business they personally bring in. This structure encourages aggressive client development but can create competition between partners.

Modified Lockstep or Formula-Based Models

Some firms use hybrid models that combine seniority with performance factors like billable hours, client origination, and leadership contributions. These models balance fairness with rewarding high performers.

Two-Tier Partnership Structures

Many firms now use a two-tier system that separates equity and non-equity partners. This structure gives firms flexibility and helps develop future leaders without requiring immediate capital contributions.

Key Responsibilities of a Law Firm Partner

Becoming a partner means balancing legal work with leadership responsibilities that directly impact client relationships, firm operations, and profitability.

1. Business Development

Partner attorneys are expected to bring in new clients and expand existing relationships. This means networking, building your reputation, and maintaining strong connections in your practice area.

2. Leadership and Team Management

You'll mentor junior lawyers, supervise projects, and help hire and train staff. You help shape the standards and values that guide your team.

3. Financial Oversight and Profitability

Equity partners help set budgets, track revenue, and manage expenses. Even non-equity partners are held accountable for the financial success of their teams or practice areas.

4. Client Relationship Management

As a partner at a law firm, you serve as the main point of contact for key clients. Strong client relationships are essential for retention and growth.

Equip Your Firm to Support Future Partners
A streamlined legal operations platform helps firms identify, track, and support high-performing associates on the path to partnership. See how Centerbase supports partner performance metrics, billing transparency, and talent development.
Explore Centerbase for Firm Management

Why Making Partner Looks Different Than It Used To

Law firms do not reward time served the way they once did. Billable hours still matter, but they are not the whole story. Firms look for partners who can grow revenue, lead teams, and protect the client experience.

Client expectations have also changed. Many clients want clear pricing and faster answers. Alternative fee arrangements and tighter competition push firms to run more like businesses. Partners need to understand firm economics and make smart decisions about pricing, staffing, and collections.

The legal field is changing in other ways too. Firms are putting more focus on culture, flexibility, and long-term retention. Diversity across the profession is also growing, which continues to reshape leadership and career paths in law.

The Pros & Cons of Making Partner

Making partner can bring significant professional rewards, but it also comes with added pressure and responsibility. Understanding both sides helps you decide whether the partnership aligns with your long-term goals.

Weighing the Pros and Cons of Making Partner at a Law Firm

Pros of Making Partner	Cons of Making Partner
Prestige and Recognition: You gain respect and influence inside and outside the firm.	Pressure to Perform: You must generate revenue and meet high expectations.
Financial Upside: Profit-sharing or equity can significantly boost your compensation.	Longer Hours and Stress: Leadership includes more work and responsibility.
Autonomy: You help set firm policies and have more control over your work.	Leadership Demands: Managing people and finances can be challenging.
Career Security: Partnership offers more stability than associate roles.	Financial Risk: Equity partners may contribute capital and face liability for firm debts.

How Firms Decide Who Makes Partner

Most law firm partnerships follow a structured process to decide who becomes a partner. The process often includes a partner vote or review by a selection committee.

A group of equity partners or a leadership committee usually makes the decision. Some firms also give meaningful input to the managing partner or an executive board.

Firms typically weigh a few core factors when they review candidates:

• Business impact: Firms look for proof you can grow and retain client work.
• Performance consistency: Firms want strong work quality and reliable results over time.
• Leadership readiness: Firms look for people who can lead teams and represent the firm well.
• Fit and trust: Firms promote lawyers who align with firm values and earn internal support.

The Path to Partnership: 5 Promotion Triggers

Every firm is different, but most partnership decisions come down to a few clear signals that you're ready to help lead and grow the business.

1. You Generate Business Consistently

Law firms promote lawyers when they see clear proof you can help grow revenue over time. That often shows up as steady origination, growth inside existing accounts, or repeatable ways to create new demand. A strong upward trend matters, even if your current book is still developing. Firms want confidence that demand for your work will continue.

2. You Earn Sponsorship and Client Trust

Senior partners support lawyers they trust under pressure. When experienced partners pull you into high-stakes work and rely on you with important clients, it signals they see you as future leadership. Client trust strengthens that case even more. If clients ask for you by name and rely on your judgment, leadership takes notice. This kind of sponsorship isn't about politics; it's about confidence.

3. Your Performance Is Reliable Under Pressure

Strong performance over time is one of the clearest signals you're ready for partnership. That can show up as high utilization, clean work product, and fewer write-offs because your work is accurate and well-managed. Firms also watch how you handle deadlines, client friction, and avoidable rework. Teams need to trust you to lead important work without creating downstream issues.

4. Your Firm Needs New Leaders

Staff changes often create natural opportunities for partnership. Retirements, departures, practice growth, and office expansion all require trusted leaders. Firms may elevate lawyers who already carry leadership responsibility and keep client service stable. Partnership can also be a retention tool for rising leaders.

5. You Bring Valuable, Differentiated Skills

Unique expertise can set you apart when it gives the firm a clear edge. This might include a fast-growing niche, rare industry experience, or specialized technical knowledge. Firms value skills that strengthen what they can win and deliver for clients. Partnership becomes more likely when your expertise translates into repeatable demand.

Partnership Readiness Checklist: Do You Have the Proof?

Use this checklist to see if you're on track for partnership:

☑ Business Development: You can name new work you brought in or expanded in the last 12 months. You can explain how you won it.

☑ Client Ownership: You lead key client relationships. Clients ask for you by name or rely on you for high-stakes work.

☑ Performance: Your work stays on track with few write-offs or rework. Your realization and collections stay strong on matters you run.

☑ Leadership: You have led a matter team or an internal project end-to-end. People trust you to set direction and follow through.

☑ Specialization: You are known for a clear niche or skill the firm can sell. You can point to matters or results that prove it.

☑ Business Mindset: You understand how pricing, staffing, and collections affect profit. You can explain the business impact of your decisions.

Five Tips for Lawyers Working Toward Partnership

If you want to become a partner, focus on these strategies:

1. Build client relationships early

Take ownership of deliverables and manage client expectations from start to finish.

2. Review key metrics each month

Track realization, write-offs, and collections—not just billable hours.

3. Ask about the path

Tell firm leaders you want to be on the partnership track and ask what readiness looks like at your firm.

4. Learn the business side of law

Understand firm economics, pricing models, technology, and operations so you can contribute beyond legal work.

5. Lead one internal initiative each quarter

Join a committee, mentor junior lawyers, or run a process improvement that helps the firm.

Ready to Modernize How You Manage Partners?
Centerbase helps growing firms streamline operations, track KPIs, and build scalable systems for partner compensation, billing, and performance tracking.
Get a Personalized Demo

Empower Future Partners with Centerbase

Making partner means shifting from legal executor to firm leader and business owner. You need tools that help you track performance, manage matters, bill efficiently, and drive firm growth.

Centerbase is legal practice management software designed to deliver optimal efficiency, profitability, and business growth for your midsize law firm. With Centerbase, you can streamline your path to partnership and lead with confidence.

Get a free demo to see how Centerbase supports partners and future leaders.

FAQs About Making Partner in a Law Firm

Is partner the highest position in a law firm?

In most law firms, partner is the highest or one of the highest positions, especially for those who are equity partners or managing partners.

How long does it typically take to become a partner at a law firm?

It usually takes 8 to 10 years to become a partner, but the timeline depends on your performance, the firm's structure, and its requirements.

How hard is it to make a partner in a law firm?

Making partner is competitive and challenging, requiring strong legal skills, business development, leadership, and consistent performance over many years.

Do you pay to become a partner in a law firm?

Some equity partners are required to contribute capital to the firm as part of their ownership stake, while non-equity partners usually do not pay to become a partner.