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A Guide to Practicing Law in Multiple States

published December 20, 2023

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( 3 votes, average: 4.3 out of 5)
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If you find yourself intrigued by the prospect of becoming a multi-state lawyer and are seeking guidance on navigating this complex terrain, you've landed in the right space. As a seasoned legal professional boasting seven bar cards, the perplexed expressions I encounter when revealing my ability to practice in seven states serve as a testament to the rarity and intricacies of a multi-jurisdictional legal career. In essence, managing a legal practice across multiple states demands meticulous planning and considerable overhead, although contemporary advancements have streamlined the process.
 
A Guide to Practicing Law in Multiple States

But why would one aspire to practice law in different states? Consider scenarios such as a Kansas City lawyer desiring to ply their trade in both Kansas and Kansas City, Missouri. Proximity to state borders, as in the cases of attorneys in cities like NYC, St. Louis, Omaha, Philadelphia, and others, may necessitate the need to navigate legal landscapes in adjacent states. Family obligations or the strategic goal of expanding a law firm to serve clients in diverse geographic locations also motivate lawyers to contemplate multi-state practice.

 
Can lawyers practice freely in any state? Unfortunately, the answer is mostly no. The majority of practice areas are governed by state law, demanding adherence to specific State Bar licensing requirements. Even in fields predominantly governed by federal law, such as bankruptcy and immigration, a State Bar license might be a prerequisite. Nevertheless, the interpretation of this requirement varies, leading to ongoing legal debates and litigation, exemplified by conflicting opinions between the Sixth Circuit and local State Bars.
 

Explore our comprehensive resource on bar reciprocity to gain insights into the nuances of practicing law across state lines and the options available to you.

 
Delving into the benefits of becoming a multi-state lawyer reveals a myriad of advantages. Foremost among them is the expansion of your client base. In regions where population density might not support a thriving legal practice, the ability to take cases from across state lines becomes a significant advantage. This is particularly true for practice areas like business formation, litigation, and mass torts, where the choice of venue holds paramount importance. Additionally, clients requiring representation in multiple states often prefer to retain a single attorney, making multi-state practitioners highly sought after.
 
Another notable benefit is increased geographical flexibility. The bar exam, typically offered biannually, coupled with the challenges posed by relocation, can disrupt a legal career for months or even years. My personal experience, having been licensed in California while also taking the Uniform Bar Exam (UBE) in Missouri, highlighted the strategic advantage of a UBE score transferable across states. This flexibility empowered me to navigate through five additional states, offering a breadth of options from coast to coast and simplifying long-term planning.
 
However, ethical considerations loom large in the realm of multi-state practice. The ongoing debate over the necessity of holding multiple State Bar licenses, especially when primarily engaged in federal law, underscores the complexities involved. While some adopt the stance that federal law practice warrants a broader geographical scope, instances like a bankruptcy lawyer in Michigan admitted to federal court with only a Texas bar card have triggered prolonged legal battles. The Sixth Circuit's verdict in favor of the attorney in question has left this issue shrouded in uncertainty outside of its jurisdiction.
 
In conclusion, the journey of becoming a multi-state lawyer is a nuanced expedition that demands a keen understanding of legal intricacies, ethical considerations, and the potential for professional growth. Our comprehensive resource stands ready to guide you through the maze, providing invaluable insights and practical strategies for a successful multi-jurisdictional legal career.
 
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In the contemporary landscape of remote work, the evolution of state bar regulations has been somewhat gradual, with some jurisdictions embracing telecommuting while others lag behind. Navigating the realm of multi-state practice in this remote-first era requires heightened awareness to avoid inadvertently violating rules prohibiting the unauthorized practice of law. It is crucial to consult with the relevant state bar first, as some states may have issued rulings or guidelines on the matter. If such rulings exist, aspiring multi-state lawyers should delve into the licensing procedures outlined by the respective state authorities.
 
The traditional notion of 50 states, each with its own unique bar exam, has undergone a significant transformation. The advent of the Uniform Bar Exam (UBE) has ushered in a more standardized approach, eliminating the need for lawyers to tackle 50 distinct bar exams. Even notoriously challenging exams, like the one in New York, have given way to the UBE. Speculation is rife that even California, with its historically rigorous and non-reciprocal exam, might transition to the UBE soon.
 
However, the term "uniform" can be misleading, as variations persist in crucial aspects among states adopting the UBE. These variations encompass the passing score required by each state, the duration of validity for UBE scores, and the diverse character and fitness procedures. Additionally, the Multistate Professional Responsibility Examination (MPRE) may or may not be a requisite, with passing scores varying. Some states may mandate a separate examination on state laws, adding another layer of complexity. The process is far from uniform, exemplified by instances where residency requirements for UBE score transfers exist.
 
Becoming a multi-state lawyer is a nuanced journey with various paths. One avenue is applying for reciprocity with other states' bars, allowing admission without undertaking another bar exam. Many states have reciprocity provisions, often contingent on the lawyer's years of active practice. BarReciprocity.com is a valuable resource, providing comprehensive information on reciprocity rules for each state. It's worth noting that California remains an exception, not offering reciprocity to practitioners from other states.
 
Another option is the traditional route of taking bar exams in multiple states. While this approach is less favored due to its challenges, some may choose it based on familiarity gained from previous exam experiences. The process may be demanding, but for those who have successfully navigated one bar exam, the prospect of subsequent exams may be less daunting.
 
Whether one leans towards transactional law or litigation, the process of gaining admission to the bar remains consistent. Transactional lawyers, in particular, find minimal downsides to being multi-state practitioners, as the majority of their legal templates can seamlessly transcend state borders. On the other hand, litigators must adapt to local court procedures when crossing state lines, a process that necessitates familiarization and adjustment before engaging in courtroom activities.
 
Debates persist about the necessity of additional state licenses for practicing federal law out-of-state. While admission to federal court theoretically obviates the need for a local State Bar license, the unauthorized practice of law concerns may still arise. The lack of accountability to a state's disciplinary jurisdiction poses a significant interest gap that legal practitioners should be aware of.
 
Practical considerations for multi-state lawyers extend to administrative aspects, such as trust accounts. While some states permit practitioners to use another state's trust account, others insist on a separate account for each jurisdiction. Finding a bank adept at handling lawyer trust accounts is challenging, and the complexity increases when dealing with multiple states. These practical nuances underscore the importance of thorough planning and diligence for lawyers navigating the intricacies of multi-state practice in the age of remote work.
 
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My journey with banks as a multi-state lawyer

 
I went through more than half a dozen banks and met with issues like:
 
  • One bank insisted on charging a monthly service fee for each lawyer trust account. Also, they could only take the service fees out of the trust account itself. This violates most state bar rules. 
  • The next bank did not understand the difference between an IOLTA account (where the interest is paid to the State Bar) and a general business checking account. 
  • My personal bank opened my trust account. But then they closed it without telling me because the account remained empty for six months. 
  • Another bank said all the right things when I signed up. But they also closed my accounts without telling me due to inactivity after only two months. 
  • My other personal bank had a dispute with the state of New Jersey and was not on their approved list for a couple of years. This bank also did not serve any of my Midwestern states. 
  • They would only open an account if I showed up in person for each state they did service. That would mean having to fly to each of the seven states to open seven accounts. 
  • Finally, I found out that a bank in Kansas services all the Midwestern states and California. This left me with only two banks to deal with regularly. They even called each state bar while I was in the branch to make sure they were setting things up perfectly.
 
In the realm of continuing legal education (CLE), the advent of online providers has offered a lifeline to multi-state lawyers seeking to fulfill their educational requirements. Several online CLE providers claim to cater to the diverse needs of practitioners across numerous states. However, the challenge lies in navigating reporting deadlines, varied reporting procedures, and compliance fees in multiple jurisdictions. Lawline.com stands out as a valuable resource, providing a user-friendly tracker, a comprehensive multistate curriculum, and the convenience of a flat fee for unlimited classes.
 
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Pass the Bar Exam in One State & Work as a Lawyer in Another: A Comprehensive Guide
The Pros and Cons of Taking and Passing the Bar Exam in Multiple States
 
Undoubtedly, practicing law in a single state is simpler, but the advantages of becoming a multi-state lawyer are compelling. The contemporary landscape, marked by reciprocity agreements and uniform bar admission, has significantly eased the once formidable challenges associated with multi-state practice. Embracing a second or third bar license can be a strategic move, offering enhanced flexibility and opportunities for expanding one's legal practice.
 
The benefits of being a multi-state lawyer extend beyond the administrative hurdles. Increased flexibility allows practitioners to adapt to changing circumstances, whether driven by personal or professional considerations. The ability to grow a legal practice becomes more pronounced, especially in areas where geographical boundaries may limit the client base. The contemporary legal landscape, with its emphasis on reciprocity and streamlined admission processes, makes the prospect of acquiring additional bar licenses more achievable than ever.
 
While the paperwork involved in obtaining multiple bar licenses and managing administrative tasks related to trust accounts and CLEs may seem daunting, the trade-off in terms of professional opportunities and flexibility can be substantial. Online tools and platforms, such as Lawline.com, play a pivotal role in simplifying the CLE tracking process, making it more manageable for multi-state lawyers.
 
In conclusion, the journey of becoming a multi-state lawyer, though accompanied by administrative responsibilities, is now more accessible and advantageous than in the past. The potential for increased flexibility and the ability to broaden the scope of legal practice make the pursuit of additional bar licenses a viable and strategic option. By leveraging the resources offered by online platforms and staying abreast of evolving legal landscapes, practitioners can navigate the complexities of multi-state practice with greater ease and reap the benefits of a more expansive professional footprint.

published December 20, 2023

By Author
( 3 votes, average: 4.3 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.