Before the advent of the LLC; the corporation was the only practical entity for the business owner. The choice was then between the S corporation and the C corporation. Now the LLC is the third option. Most business owners, in the past, elected the S corporation over the C corporation because the S corporation is taxed as a proprietorship or partnership so the profits or losses would flow directly to its stockholders. Larger corporations normally select the C corporation because of its number and diversity of stockholders. Now, the LLC can afford the same tax advantages as the S corporation or C corporation and also provide you with Asset Protection.
Professionals also have organizational options. Most of our doctor, dentist, lawyer and accountant clients prefer professional corporations (PC) or professional associations (PA), which limits their liability in the same way a corporation or LLC personally protects the business owner. While the professional corporation protects the professional from the debts of their practice; the professional corporation won’t personally protect the professional sued for his or her own malpractice. Still, these entities can insulate the professional from errors by other employees, as well as from other corporate liabilities. Moreover, the professional corporation’s assets cannot be directly claimed by the professional’s personal creditors. Nor can the professional’s personal creditors readily seize the professional’s stock ownership in the professional corporation since the ownership of these entities, by regulation, usually must be owned by only professionals from that profession.
Professional’s today cannot rely solely upon malpractice insurance for protection. Professionals incur too many other liabilities in their practice. They need the same sound organizational protection, as do business owners.
Contact The Presser Law Firm. P.A. for a complimentary preliminary consultation.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com