ILLMAS Posted March 14, 2009 Report Share Posted March 14, 2009 I have a TP that is a doctor, every year he tells that he wants to go independent but what holds him back is the cost malpractice insurance. He is really not interested in the tax benefits between a regular Corp and an S-Corp, he is looking for additional protection against his assets incase of a lawsuit. Can someone who might have a case like this share what be better for him. Thanks Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 14, 2009 Report Share Posted March 14, 2009 The liability protection of a corporation, no matter which kind, can vary from state to state, so let us know where the doctor practices or have him consult or you consult with a lawyer well versed in that state's corporate liability laws. Of course, he needs to maintain his malpractice insurance. And, he must do all the usual things to act like a corporation and not mix business with personal, keeping funds separate, etc., no matter where he is or what entity he is. Some states have professional limited liability companies of some type that might be right for him. And, such structures might protect his personal assets from acts of his staff or falls on his property or other things not associated with his professional actions, but situations due to his own professional actions are hard to escape personal liability for. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 14, 2009 Report Share Posted March 14, 2009 The basic problem, which is general to all states, is that no entity choice will protect the doctor from claims arising from his own actions. So if he is accused of malpractice, and found at fault in court, he's going to be personally liable no matter what sort of entity he uses for business reporting. And since insurance is his only defense in such cases, I rather doubt that how he structures the business will have much effect on his premiums. Of course, he can find out by talking to his insurance agent, who probably can give him better advice on that subject than we could. Where you can advise him is about such things as any C corp he forms being a PSC, that sort of thing. Lots of doctors seem to think that incorporating is some kind of panacea against a big tax bite. It's not. Quote Link to comment Share on other sites More sharing options...
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