RE: Practice Types

[Guest guest]

Our attorney, who suggestes an LLC, said that none of our personal assets are at risk, only those of the LLC. A judgment could max out our malpractice limit and take all that our office possesses but I don't think it can go beyond that into personal assets..........but maybe my attorney was wrong

Rian Mintek, MD

Re: Practice Types

The recent Family Practice Management journal article on this topic concluded by stating that the author generally recommends a sole proprietorship to new solo docs and an S-Corp to new groups. Of course, everyone should carry malpractice insurance as well as practice liability insurance. Everyone's personal assets are at risk in the case of a malpractice award exceeding your insurance limits (rare as this is), no matter what type of practice you are in. I believe this is the more likely scenario then someone slipping on my sidewalk & winning a suit past my insurance limits. That being said, may none of us ever be involved in any such suits!Sharon At 03:13 PM 5/17/2006, you wrote:

I did not respond to the poll. Been too busy to even read the messages. But this one caught my eye. I am a sole proprietor. Five years ago, when setting all of this up, I did consult an attorney and an accountant about the best type of practice to set up. I was advised to just take the sole proprietor route. When I asked about liabilities, I was told that in my state, even as a small corp, litigants had successfully argued that personal assetts should be reach-able, since the solo dr. is the corp and the corp is the solo doctor. I was told that this probably wouldn't matter, but we put the house in the wife's name anyway, just to be safe. So maybe the risk of being a sole proprietor varies from state to state?Greg Brock DO wrote:> As I mentioned before, I sure hope those 7 people that responded as > “sole proprietor” are either mistaken or have checked with a good > health care attorney because that is supposedly an absolute no-no, > unless you want to risk everything you own.>> >

[Guest guest]

It cost us $500 to set up as an LLC and beyond that it is only a $75 fee/year to the State of Michigan. As long as we "meet" once/year and document our mtg in simple notes that we give to our attorney to file in our LLC folder, we've met all requirements.

Rian Mintek (the P in our PLLC)

a Mintek (sec/treas but not a "member")

RE: Practice Types

I hear that you can get insurance to protect your personal assets. I guess one should weigh the costs of the extra insurance vs. the costs of the corp structure, annual fees, taxes etc.

Moitri Brock DO wrote:

Was that a recent FPM article? I’d like to search for it on their website to see if they are really advising a sole proprietorship. Everything I’ve ever read says absolutely no way should you ever operate as a sole proprietor (ian ANY business, not just medicine). The way I understood it is that you are personally liable regardless of whether you have liability coverage or not (policy limits may not matter). You basically have no shield between you & the practice in a sole proprietorship, they are one & the same.

-----Original Message-----From: [mailto: ] On Behalf Of Sharon McCoy Sent: Wednesday, May 17, 2006 3:10 PMTo: Subject: Re: Practice Types

The recent Family Practice Management journal article on this topic concluded by stating that the author generally recommends a sole proprietorship to new solo docs and an S-Corp to new groups. Of course, everyone should carry malpractice insurance as well as practice liability insurance. Everyone's personal assets are at risk in the case of a malpractice award exceeding your insurance limits (rare as this is), no matter what type of practice you are in. I believe this is the more likely scenario then someone slipping on my sidewalk & winning a suit past my insurance limits. That being said, may none of us ever be involved in any such suits!Sharon At 03:13 PM 5/17/2006, you wrote:

I did not respond to the poll. Been too busy to even read the messages. But this one caught my eye. I am a sole proprietor. Five years ago, when setting all of this up, I did consult an attorney and an accountant about the best type of practice to set up. I was advised to just take the sole proprietor route. When I asked about liabilities, I was told that in my state, even as a small corp, litigants had successfully argued that personal assetts should be reach-able, since the solo dr. is the corp and the corp is the solo doctor. I was told that this probably wouldn't matter, but we put the house in the wife's name anyway, just to be safe. So maybe the risk of being a sole proprietor varies from state to state?Greg Brock DO wrote:> As I mentioned before, I sure hope those 7 people that responded as > “sole proprietor” are either mistaken or have checked with a good > health care attorney because that is supposedly an absolute no-no, > unless you want to risk everything you own.>> >

[Guest guest]

In Illinois it's double, I think. I am a single member LLC but I know

in some states it is not possible.

> It cost us $500 to set up as an LLC and beyond that it is only a $75

> fee/year to the State of Michigan. As long as we " meet " once/year and

> document our mtg in simple notes that we give to our attorney to file

> in our LLC folder, we've met all requirements.

>  

> Rian Mintek (the P in our PLLC)

> a Mintek (sec/treas but not a " member " )

>> Re: Practice Types

>>>  

>>> The recent Family Practice Management journal article on this topic

>>> concluded by stating that the author generally recommends a sole

>>> proprietorship to new solo docs and an S-Corp to new groups.  Of

>>> course, everyone should carry malpractice insurance as well as

>>> practice liability insurance.   Everyone's personal assets are at

>>> risk in the case of a malpractice award exceeding your insurance

>>> limits (rare as this is), no matter what type of practice you are

>>> in.  I believe this is the more likely scenario then someone

>>> slipping on my sidewalk & winning a suit past my insurance limits. 

>>> That being said, may none of us ever be involved in any such suits!

>>>

>>> Sharon

>>>

>>> At 03:13 PM 5/17/2006, you wrote:

>>>

>>> I did not respond to the poll. Been too busy to even read the

>>> messages.

>>> But this one caught my eye. I am a sole proprietor. Five years ago,

>>> when

>>> setting all of this up, I did consult an attorney and an accountant

>>> about the best type of practice to set up. I was advised to just take

>>> the sole proprietor route. When I asked about liabilities, I was told

>>> that in my state, even as a small corp, litigants had successfully

>>> argued that personal assetts should be reach-able, since the solo

>>> dr. is

>>> the corp and the corp is the solo doctor. I was told that this

>>> probably

>>> wouldn't matter, but we put the house in the wife's name anyway,

>>> just to

>>> be safe. So maybe the risk of being a sole proprietor varies from

>>> state

>>> to state?

>>>

>>> Greg

>>>

>>>

>>> Brock DO wrote:

>>>

>>> > As I mentioned before, I sure hope those 7 people that responded as

>>> > “sole proprietor†are either mistaken or have checked with a good

>>> > health care attorney because that is supposedly an absolute no-no,

>>> > unless you want to risk everything you own.

>>> >

>>> >

>>> >

>>>

>>>

>>>

>>>

[Guest guest]

In Illinois it's double, I think. I am a single member LLC but I know

in some states it is not possible.

> It cost us $500 to set up as an LLC and beyond that it is only a $75

> fee/year to the State of Michigan. As long as we " meet " once/year and

> document our mtg in simple notes that we give to our attorney to file

> in our LLC folder, we've met all requirements.

>  

> Rian Mintek (the P in our PLLC)

> a Mintek (sec/treas but not a " member " )

>> Re: Practice Types

>>>  

>>> The recent Family Practice Management journal article on this topic

>>> concluded by stating that the author generally recommends a sole

>>> proprietorship to new solo docs and an S-Corp to new groups.  Of

>>> course, everyone should carry malpractice insurance as well as

>>> practice liability insurance.   Everyone's personal assets are at

>>> risk in the case of a malpractice award exceeding your insurance

>>> limits (rare as this is), no matter what type of practice you are

>>> in.  I believe this is the more likely scenario then someone

>>> slipping on my sidewalk & winning a suit past my insurance limits. 

>>> That being said, may none of us ever be involved in any such suits!

>>>

>>> Sharon

>>>

>>> At 03:13 PM 5/17/2006, you wrote:

>>>

>>> I did not respond to the poll. Been too busy to even read the

>>> messages.

>>> But this one caught my eye. I am a sole proprietor. Five years ago,

>>> when

>>> setting all of this up, I did consult an attorney and an accountant

>>> about the best type of practice to set up. I was advised to just take

>>> the sole proprietor route. When I asked about liabilities, I was told

>>> that in my state, even as a small corp, litigants had successfully

>>> argued that personal assetts should be reach-able, since the solo

>>> dr. is

>>> the corp and the corp is the solo doctor. I was told that this

>>> probably

>>> wouldn't matter, but we put the house in the wife's name anyway,

>>> just to

>>> be safe. So maybe the risk of being a sole proprietor varies from

>>> state

>>> to state?

>>>

>>> Greg

>>>

>>>

>>> Brock DO wrote:

>>>

>>> > As I mentioned before, I sure hope those 7 people that responded as

>>> > “sole proprietor†are either mistaken or have checked with a good

>>> > health care attorney because that is supposedly an absolute no-no,

>>> > unless you want to risk everything you own.

>>> >

>>> >

>>> >

>>>

>>>

>>>

>>>

[Guest guest]

I am a single member LLC also, but I don’t

think there is any ongoing annual fee in Ohio. I can not recall how much it was to set it up but I know it

was $500 or less & just required a brief application to the secretary of

state’s office (of Ohio). Also, I was not aware that I had to “meet”

once a year as an LLC. I thought only applied to true corporations (S-corp

or C-corp)? Basically, since I set it up it has been a maintenance free

entity type.

Re: Practice Types

The

recent Family Practice Management journal article on this topic concluded by

stating that the author generally recommends a sole proprietorship to new solo

docs and an S-Corp to new groups. Of course, everyone should carry

malpractice insurance as well as practice liability insurance.

Everyone's personal assets are at risk in the case of a malpractice award

exceeding your insurance limits (rare as this is), no matter what type of

practice you are in. I believe this is the more likely scenario then

someone slipping on my sidewalk & winning a suit past my insurance

limits. That being said, may none of us ever be involved in any such

suits!

Sharon

At 03:13 PM 5/17/2006, you

wrote:

I did not respond to the

poll. Been too busy to even read the messages.

But

this one caught my eye. I am a sole proprietor. Five years ago, when

setting

all of this up, I did consult an attorney and an accountant

about

the best type of practice to set up. I was advised to just take

the

sole proprietor route. When I asked about liabilities, I was told

that

in my state, even as a small corp, litigants had successfully

argued

that personal assetts should be reach-able, since the solo dr. is

the

corp and the corp is the solo doctor. I was told that this probably

wouldn't

matter, but we put the house in the wife's name anyway, just to

be

safe. So maybe the risk of being a sole proprietor varies from state

to

state?

Greg

Brock DO wrote:

> As I mentioned

before, I sure hope those 7 people that responded as

>

“sole proprietor” are either mistaken or have checked with a good

>

health care attorney because that is supposedly an absolute no-no,

>

unless you want to risk everything you own.

>

>

>

------------------------

[Guest guest]

I am a single member LLC also, but I don’t

think there is any ongoing annual fee in Ohio. I can not recall how much it was to set it up but I know it

was $500 or less & just required a brief application to the secretary of

state’s office (of Ohio). Also, I was not aware that I had to “meet”

once a year as an LLC. I thought only applied to true corporations (S-corp

or C-corp)? Basically, since I set it up it has been a maintenance free

entity type.

Re: Practice Types

The

recent Family Practice Management journal article on this topic concluded by

stating that the author generally recommends a sole proprietorship to new solo

docs and an S-Corp to new groups. Of course, everyone should carry

malpractice insurance as well as practice liability insurance.

Everyone's personal assets are at risk in the case of a malpractice award

exceeding your insurance limits (rare as this is), no matter what type of

practice you are in. I believe this is the more likely scenario then

someone slipping on my sidewalk & winning a suit past my insurance

limits. That being said, may none of us ever be involved in any such

suits!

Sharon

At 03:13 PM 5/17/2006, you

wrote:

I did not respond to the

poll. Been too busy to even read the messages.

But

this one caught my eye. I am a sole proprietor. Five years ago, when

setting

all of this up, I did consult an attorney and an accountant

about

the best type of practice to set up. I was advised to just take

the

sole proprietor route. When I asked about liabilities, I was told

that

in my state, even as a small corp, litigants had successfully

argued

that personal assetts should be reach-able, since the solo dr. is

the

corp and the corp is the solo doctor. I was told that this probably

wouldn't

matter, but we put the house in the wife's name anyway, just to

be

safe. So maybe the risk of being a sole proprietor varies from state

to

state?

Greg

Brock DO wrote:

> As I mentioned

before, I sure hope those 7 people that responded as

>

“sole proprietor” are either mistaken or have checked with a good

>

health care attorney because that is supposedly an absolute no-no,

>

unless you want to risk everything you own.

>

>

>

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