Legal Question in Business Law in New Jersey

Re: RE: LLC members

There has been recent case law which has questioned the propriety of an LLC for medical professionals accepting insurance from patients and then seeking reimbursement from the insurance companies. I STRONGLY advise you seek legal counsel to discuss your options.

Re: RE: LLC members

All prior answers are correct, but you do not have the full picture unless you read them all. There cannot be an unlicensed (unless they are in the same profession) member of a professional LLC, even if the unlicensed or different licensed professional is the spouse. Thus, an attorney and an accountant cannot be members of the same LLC even if it renders both professional services. However, your situation should be easily rectified. Since NJ permits one-man/woman LLCs, just transfer your membership interest to your husband. There may be ways to accomplish legitimate tax savings using a LLC, and I suggest speaking with a tax professional, like myself or someone else, on other types of LLCs or LPs, that may be available, in which you can be a member (maybe even with your children), that will be advantageous in accomplishing what you need

Re: RE: LLC members

First, you are right; this matter should be discussed with your business and tax attorney. Normally, if the LLC is for rendering medical services, then licensed physicians would need to be the members. Nevertheless, careful structuring of the services and interrelated llc's may resolve the issue. See your lawyer!

I hope this helps!

Ron Cappuccio

www.taxesq.com

Re: RE: LLC members

The simple answer is that, if the LLC is organized in New Jersey for the purpose of providing professional services, all of the members of the LLC must be licensed in New Jersey to provide those services. There are various consequences that can arise if this is not the case. One of those is that you could possible be held to the standard of care of a physician in a professional liability suit even though you are not trained as one. You should be concerned and the issue should be resolved to your satisfaction.

Simply having you leave the LLC may not be the appropriate solution. It may also not be the only solution. Outside of your maritial interest, you now have a professional interest and business interest in the company. So, a holistic look at your situation is in order.

My firm handles matters of this type. If I can be of further help to you, call or email. If you remind me that the contact was through Lawguru, the first consultation will be free.

See also: http://info.corbettlaw.net/lawguru.htm