In its 2024 annual report to the Arizona Supreme Court, the Committee on Alternative Business Structures (ABS) highlighted significant developments in Arizona’s evolving legal service landscape. Key milestones included the licensure of the 100th ABS entity, the approval of 51 new licenses (more than double the previous year), and the relaunch of an improved online application portal. As of 31 December 2024, Arizona had 114 active ABS licensees, comprising traditional law firms, large and small non-law firms, and nonprofit organizations operating across diverse practice areas.
The ABS model, unique in permitting nonlawyer ownership and management of legal service entities, continues to attract strong interest. In response to a growing backlog of applications, the Division engaged internal staff and third-party investigators, resulting in an 84% increase in application approvals compared to 2023. The Division also processed 37 license renewals and introduced greater public transparency through a searchable online ABS directory.
In terms of enforcement, the State Bar of Arizona initiated disciplinary actions against two ABS firms and two compliance lawyers, with penalties including reprimands, probation, and mandatory participation in law office management programs.
Organizationally, the ABS and Legal Paraprofessionals programs were separated into distinct units within the Certification and Licensing Division. A new ABS team was appointed, and several working groups began drafting recommendations for ongoing improvements.
The Committee also expanded its outreach, with members and staff presenting at major national forums, sharing Arizona’s pioneering regulatory model. Looking ahead, the report reflects a legal system in transition—balancing innovation, oversight, and access to justice in a rapidly shifting professional environment.