How much is the partner buy-in? Is it true that firm gives you an interest free loan?

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^ This. Also, partner capital is on a per-share basis, so as you (hopefully) earn more shares you will need to keep more capital in the firm. That looks more like retained earnings (I have never had to write a check or take out another loan), and earns interest.

To all the aspiring partners: This is really a non-issue when it comes to economics of whether partnership makes sense or not. There is NO cash outlay involved.

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do you need to pay back every month from the base salary you receive? and do they pay you the interest every month or end of the year?

Mine was 100k in B4 - loan taken since its lower interest than my capital account accrues.

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$100k doesn’t sounds right for B4. No one would ever need the loan

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Well, I don’t know what to tell you...mine was $119k and change in Year One. And no, I didn’t NEED the loan, but it’s at a very low cost of capital so I’d have been a fool to get out the checkbook. Not saying it’s like this at every firm....but it’s how it works at mine.

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Only $100k? Can’t be that load? I’ve always heard more in range off $500k to $1m

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Please please please see AP1 above.

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$100k and yes

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That high number is a myth

Any P’s able to weigh in?

Mine was around $150K. Each year I bought in. Took loan in my case since I became partner a bit early and did not have enough savings post buying new home.

Agree with other partners, it’s no brainer to do this. The increase in payout is much higher.

I am not Big 4.

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