There are several reasons you should consider forming a legal entity for your practice, including liability limitation and tax reduction. Although a legal entity will not generally protect you from a malpractice claim, having a legal entity in place can help minimize other potential liabilities related to the ownership and operation of your practice. Additionally, depending on your particular circumstances, having a legal entity established can reduce certain types of taxes.
There are several options for the type of entity you can form. Most doctors choose to form either a limited liability company (LLC) or a professional limited liability company (PLLC) because there are fewer reporting requirements and administrative burdens. However, we have also formed corporations and professional corporations for our clients, as well as limited partnerships, both in Arizona and in other jurisdictions, and we can help you select and establish the best entity for your needs.
For additional information on entity formation, please review our healthcare blog. If you have questions about what type of entity you should form, please contact Patrick Stanley at 480-219-5481 or firstname.lastname@example.org.