How do I organize my practice to limit my liability?
Q. What are the different ways in which I can practise to limit my liability? It is a much-argued theory that if you set up practice in one form rather than another, then you will automatically reduce your liability. The reality is that there is no particular way of practising in a profession, such as architecture or engineering, which if adopted would reduce your liability beyond that which you bear when carrying on business in a different form. Each has its advantages and disadvantages. Some of the different ways of carrying on a practice are as follows:
1. Single, self-employed, principal; 2. Partnership; 3. Limited partnership; 4. Private company; 5. Incorporated company; 6. Limited liability company.