Can a lawyer who is also a licensed CPA hold himself out as practicing both law and accounting at the same time?

Plain-English summary

The inquiry asked whether an attorney who holds himself out as practicing law may concurrently practice professional accounting, where he is properly licensed both as a lawyer and as a certified public accountant.

The consensus was that it does not violate the Canons for a lawyer to use his accounting knowledge and experience in connection with his law practice; however, if he holds himself out as a practicing accountant, he should not hold himself out as a lawyer (9-0). The Committee noted that in ABA Opinion 269, the American Bar Association held a lawyer cannot form a partnership with an accountant without ceasing to hold himself out as a lawyer. One member added that a lawyer who practices accounting in connection with his law practice should practice alone; if he were in a law firm, the Committee's Opinion 128 would apply, because as an accountant he would be in partnership with persons who are lawyers only, violating ABA Canon 33.

Currency note

This opinion was issued in 1956, under the former Texas Canons of Ethics, which the Texas Disciplinary Rules of Professional Conduct replaced effective January 1, 1990. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer use his accounting expertise in his law practice?

A: Yes. The Committee said using accounting knowledge and experience in connection with a law practice does not violate the Canons.

Q: Can he hold himself out as both a lawyer and a practicing accountant?

A: No. The Committee concluded that if he holds himself out as a practicing accountant, he should not at the same time hold himself out as a lawyer.

Q: What about partnering with an accountant?

A: The Committee cited ABA Opinion 269 that a lawyer cannot form a partnership with an accountant without ceasing to hold himself out as a lawyer, and noted partnerships with other professions are barred where part of the work is the practice of law.

Background and rules framework

The opinion interprets former Texas Canon 30 (partnerships with members of other professions where part of the work is the practice of law) and references ABA Canon 33 and ABA Opinion 269. The modern analogs are ABA Model Rule 5.4 (professional independence; nonlawyer partnerships and fee-sharing) and Model Rule 5.7 (responsibilities regarding law-related services).

Citations and references

Rules of Professional Conduct:

• MR 5.4 (professional independence; nonlawyer partnerships), as a modern analog
• MR 5.7 (law-related services), as a modern analog
• Texas Canon 30 (partnerships with members of other professions)
• ABA Canon 33

Other opinions cited:

• ABA Opinion 269: a lawyer cannot partner with an accountant without ceasing to hold himself out as a lawyer
• Texas Ethics Opinion 128: cited by one member

See also

• TX Ethics Op. 153: Paying Laymen to Collect Taxes
• TX Ethics Op. 149: Lawyer-Owned Collection Corporation

Source

• Landing page: https://www.legalethicstexas.com/resources/opinions/opinion-136/
• Original PDF: https://tcle-web.s3.amazonaws.com/public/documents/Opinion_136.pdf

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION PRESENTED

May an attorney who holds himself out as practicing law concurrently practice professional accounting provided he is properly licensed by the state board as a lawyer and as a certified public accountant?

September 1956
18 Baylor L. Rev. 251 (1966)

CONCURRENT PRACTICE OF LAW AND ACCOUNTING - PARTNERSHIPS
Although a lawyer may properly use his accounting knowledge in connection with his law practice, if he holds himself out to be a practicing accountant, he should not hold himself out as a lawyer at the same time. Partnership between attorneys and members of other professions are prohibited where part of the partnership employment consists of the practice of law.

Canon 30. A.B.A. Canon 33.

This inquiry presents an interesting question. Members of the committee have written some very enlightening opinions thereon, and it is regrettable that this opinion cannot be enlarged to include much of the fine reasoning expressed by the members.

It seems to be the consensus of opinion that it does not violate the Canons of Ethics for a lawyer to use his accounting knowledge and experience in connection with his law practice. However, if he holds himself out as a practicing accountant, he should not hold himself out as a lawyer.

In Opinion 269, the American Bar Association held that a lawyer cannot form a partnership with an accountant without ceasing to hold himself out as a lawyer.

Also, one member of the committee feels that a lawyer who practices accounting in connection with his law practice should practice by himself. If he is a member of a law firm, our Opinion No. 128 would apply because, as an accountant, he would be in partnership with others who are lawyers only and that would violate Canon 33 of the Canons of Ethics of the American Bar Association. (9-0)

Tex. Comm. On Professional Ethics, Op. 136 (1956)