Lesson 16 Paralegal

Articles of Incorporation

A formal document filed with the state to create a corporation as a separate legal entity

Articles of Organization

A document filed with the state to establish a limited liability company as a legal entity

Artificial Intelligence (AI)

Computer systems simulating human intelligence to perform tasks

Bias

In the context of AI, unfair patterns in results caused by skewed training data

Billable hours

Time spent on client matters that can be charged to the client

C corporation

A corporation taxed separately from its owners, with profits taxed at the corporate level and dividends taxed again to shareholders

Case management system

Software used to organize, track, and manage legal matters and documents

Chatbot

Automated software that interacts with its users and answers questions

Client solicitation

Actively seeking clients through direct contact or improper incentives

Client trust account

A separate bank account holding funds that belong to clients

Commingling

Mixing client funds with a lawyer’s personal or business funds

Contemporaneous recording

Entering time and task details immediately

Contingency fee

Attorney’s fee paid as a percentage of the client’s recovery

Corporation

A separate legal entity created by statute, owned by shareholders, and generally providing limited liability protection

Fee splitting

Sharing legal fees between lawyers from different firms under certain conditions

Flat fee

A fixed amount charged for a specific legal service

General partner

A partner in a limited partnership who manages the business and has unlimited personal liability for its debts

General partnership

A business formed by two or more persons who share management authority and unlimited personal liability

Hybrid billing

A fee arrangement combining two or more billing methods

Keyword

A search term used in online marketing or content optimization

Limited liability

Legal protection that limits an owner’s financial responsibility to the amount invested in the business

Limited liability company

LLC, a business entity that provides limited liability to its members and offers flexible management and tax options

Limited partner

An investor in a limited partnership who does not participate in management and whose liability is generally limited to the amount invested

Limited partnership

A partnership consisting of at least one general partner with unlimited liability and one or more limited partners with liability limited to their investment

Matter code

A code identifying the type of legal task or service performed

Misclassification

Placing a task or expense in the wrong billing category

Non-billable hours

Time spent on tasks not directly chargeable to a client

Overhead expenses

General business costs not tied to a specific client matter

Partnership

A business arrangement where two or more attorneys share ownership and responsibilities

Professional corporation

A corporate structure structure for licensed professionals, offering liability and tax advantages

Professional limited liability company

A business entity combining limited liability protections with professional licensing requirements

Reconciliation

Matching bank records with internal records to ensure accuracy

Response management

Systems that organize and prioritize incoming messages for action

Rounding issues

Inaccurate billing caused by improperly adjusting time entries up or down

S corporation

A corporation that expects special tax status allowing income and losses through to shareholders for federal tax purposes

Search engine optimization

Improving website visibility in online search results

Segmentation

Grouping clients by shared characteristics for targeted communication

Shareholders

Individuals or entities that own shares of stock in a corporation and have ownership interests in the company

Sole proprietorship

In the context of law firms, a law firm owned and operated by one attorney without partners

Third-party vendor

An outside company providing services or software to a law firm

Unauthorized disbursement

Paying out client funds without permission or before they are earned