Dr. Sarah Martinez had always dreamed of opening her own medical practice. After years of residency and working under others, she was finally ready to take the leap. But as she sat down with her business plan, she realized there was one big question she hadn’t figured out: What business structure should I choose?
Overwhelmed by the choices—LLC, PLLC, or PA—she reached out to her colleague, Dr. James, who had successfully set up his own practice. “James, I’m lost. What’s the difference between these structures, and how do I choose the right one?”
James smiled, remembering how he had felt the same when he started. “I was in the same boat, Sarah. Let me break it down for you.”
He explained that an LLC (Limited Liability Company) is a great option for shielding personal assets from business risks. “It’s simple to manage and gives you flexibility with taxes, but in most states, doctors can’t set up a regular LLC. That’s where a PLLC (Professional Limited Liability Company) comes in. It’s just like an LLC, but made for licensed professionals like us, and it complies with state regulations.”
Sarah nodded, understanding a bit more. “Okay, that makes sense. What about a PA (Professional Association)?”
“Well,” James continued, “a PA is more like a corporation. It offers even stronger liability protection and gives you options like offering stock to employees, which can be a nice perk down the road. It’s a bit more formal in terms of structure, though.”
Sarah thought about it. “So, how do I choose?”
James leaned in. “It depends on your long-term goals and what your state allows. But don’t worry. The MediLaw Firm helped me sort it all out when I was starting. They know exactly what doctors need and will guide you step by step.”
“Thanks, James! I’ll give them a call,” Sarah said, relieved to have a plan.
If you’re in Sarah’s shoes, The MediLaw Firm can help you too. Call us at (305) 444-3484 or email [email protected] to set up your practice the right way!
The MediLaw Firm
(305) 444-3484 | [email protected]
4929 SW 74th CT, First Floor,
Miami, FL 33155
The example provided above is fictional and staged for illustrative purposes. At The MediLaw Firm we prioritize client confidentiality, and all client information and real-life scenarios are handled with the utmost discretion and privacy in accordance with legal and ethical standards.