Legal Question in Business Law in Minnesota

Re: Chiropractor incorporating....S-, LLC, or PC?

What type of entity (corporation, professional corporation, LLC, etc.) and what tax attribute (pass-through via S status or not) are two different questions. Most small business benefit from pass-through status, and that election is made with the IRS after you create your business entity. For professionals, the statutes and rules governing the profession in each state may allow any type of organization, or limit the choices. When I represent a professional entity, I start by contacting the state governing board or ethics board for that profession as a quick way to determine this. I can then confirm in the statutes/rules if there is any doubt.

Please keep in mind that organizing and operating the business is not a "file it and forget it" proceedure. There are a number of things you have to do and continue doing in order to gain the benefits you expect from the organization type you choose.

I'ld be happy to talk with you about this further.

Re: Chiropractor incorporating....S-, LLC, or PC?

Either an S-Corp or an LLC will work. We no longer have "professional corporations" per se. We do have a "professional firms" act (see http://www.revisor.leg.state.mn.us/stats/319B/) which outlines the procedures for registering your LLC or S Corp as a professional entity. Not knowing about the details of your personal situation, it's hard to say whether an S Corp or LLC is the better choice. Set up and maintenance of an LLC is generally very easy, however.

General disclaimer: Please keep in mind these are just "shoot-from-the-hip" comments at this point; the above comments are not legal advice and I would need to discuss the facts in detail to give proper advice. The advice might differ significantly from the general comments above, depending on the facts. We do not have an attorney-client relationship. You should consult with a retained attorney before acting in response to my above comments.

That said, good luck to you and let me know if I can be of further assistance.

Best regard, Vince King

Re: Chiropractor incorporating....S-, LLC, or PC?

My daughter set up her chiropractic practice about three years ago as Sub-S, and she seems pretty happy with that decision. I'm sure an LLC would be OK as well; but if I understand correctly an accountant who was recommended by her chiropractic school thought Sub-S was the best. Seems that what all her buddies were doing as well.

Good luck.

Disclaimer: This does not create an attorney-client relationship and is for general information purposes only. You are advised to see the advice of the attorney of your choice concerning the details of your case.

Re: Chiropractor incorporating....S-, LLC, or PC?

Absolutely without qualification you should establish an LLC.

It has the best attributes of corporations and partnerships, with full limited liability and pass through tax deductions.

But even more important are the contracts with patients and suppliers with regard to liability and tort issues.

Obviously, insurance coverage is an additional layer of liability protection.

I specialize in business start-ups and establishing LLC's./