Provided by: Jennifer Kirschenbaum, Esq.
April 4, 2019
I have practiced as a solo practitioner for several decades. Recently it was recommended to me to form a corporate entity to protect myself from a malpractice claim. What do you think? Should I form one?
Well, there may be a few reasons to form a corporate entity, but protecting yourself from a malpractice claim isn't high on that list. As a professional you cannot insulate yourself from a claim of professional malpractice. If a patient or their family sues, you would be named personally. This is why you have insurance - to cover against malpractice claims. So, should you form solely to protect against a malpractice claim when you are practicing as a solo? No. However, you may elect to engage in corporate structuring to move assets out of your name to protect against malpractice exposure - but that is a different conversation related to planning and protection.
Would my answer change if you employed other providers? Yes.