TBA Law Blog


Posted by: Azya Thornton on Jun 27, 2025

Puerto Rico has enacted new lawyer ethics rules that allow nonlawyers to have an ownership interest in law firms, the American Bar Association (ABA) Journal reports. Although Puerto Rico’s new ethics rules are modeled on the ABA Model Rules, the provision allowing nonlawyer ownership is a key change. Nonlawyers may not own more than 49% of the shares in law offices, which must be operated by lawyers licensed in Puerto Rico. The rules also state that nonlawyers cannot interfere with lawyers’ independent professional judgment or provide services to the law offices. The Puerto Rico Supreme Court plans to assess the rule’s effectiveness after three years. Other jurisdictions that allow nonlawyer ownership of law firms include Arizona and the District of Columbia, while Utah permits it under the restrictions of its regulatory sandbox program. The ABA released Formal Opinion 499 in 2021, which ruled that a lawyer generally may invest passively in a law firm that includes nonlawyer owners in jurisdictions that permit such alternative business structures.