An Alternative Business Structure (ABS) is a licensed Arizona business that is allowed to include non-lawyer owners and deliver legal services. Arizona created it in 2021 when it eliminated the rule (ER 5.4) that had banned non-lawyer ownership of law firms.
The three roles inside an ABS
Every ABS is built on three simple parts. Owners can include non-lawyers — anyone with a 10% or greater economic interest or decision-making authority is an "authorized person" and completes a character review. A compliance lawyer (an active Arizona-licensed attorney) is responsible for making sure the firm follows the professional-conduct rules that protect clients. And the attorneys do the actual practice of law. You own the business; they do the lawyering.
Who oversees it?
The Arizona Supreme Court runs the program under ACJA §7-209, with applications reviewed by the Committee on Alternative Business Structures. That oversight is what makes an ABS legitimate and defensible.
What a non-lawyer owner can and can't do
You can own equity, invest capital, build the brand, run operations and marketing, and share in profits. You cannot practice law or give legal advice — that always stays with licensed attorneys. Staying on the owner's side of that line is what keeps the model clean.
Frequently asked questions
What does ABS stand for?
Alternative Business Structure — a licensed Arizona business that may include non-lawyer owners and deliver legal services.
What is a compliance lawyer?
An active Arizona-licensed attorney every ABS must have, responsible for ensuring the firm follows the professional-conduct rules that protect clients.
What is an 'authorized person'?
An owner with at least a 10% economic interest in the ABS, or someone with decision-making authority. Authorized persons complete a character and background review.