Professional Limited Liability Companies - 2007/05/10 22:22
These are special entity forms created for lawyers, doctors, CPA’s, architects, engineers and other professionals subject to licensing requirements and malpractice liability. They are similar to the standard forms, except that usually the appropriate state licensing body must approve the formation documents before they are filed As you can see, there are many choices and many factors to consider - there is no "one right answer". Many of the advantages of incorporating can be gained in other ways for sole proprietors, such as purchasing liability insurance. Also, the paper legalities are often outweighed by the real-world practicalities. For example, while a corporation may shield the owners from personal liability for debts, in your first 2-3 years in business, it's unlikely you'll even be able to get business credit without personally co-signing as a guarantor, in which case you forfeit that protection. Educate yourself, talk to a professional, and consider all your options carefully.
Start A Business
