ABSTRACT
One of the first decisions that any practicing doctor and business owner has to make is how the business should be structured. This is the first essential step toward protection of personal possessions and business assets. Liability, or legal responsibility, e.g., court ordered monetary obligation from a malpractice verdict, is a feared risk in clinical practice. Therefore, limited liability is a valued feature for professionals that wish to protect personal assets and businesses that have more than a few employees. A nonprofit corporation is recognized as tax exempt by the IRS and is organized for a public or charitable purpose. The American Cancer Society and the Muscular Dystrophy Association are two such organizations, but so is the NFL. For private purposes, this type of corporation has severe limitations and should not be considered as a viable business organization for a doctor’s practice.
