Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
For the professional services, you are required to use the special type of corporation or limited liability company. The laws fall under Chapter 621, Florida Statutes. Here's a little bit of it.
621.03 Definitions.-As used in this act the following words shall have the meaning indicated:(1) The term "professional service" means any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization. By way of example and without limiting the generality thereof, the personal services which come within the provisions of this act are the personal services rendered by certified public accountants, public accountants, chiropractic physicians, dentists, osteopathic physicians, physicians and surgeons, doctors of medicine, doctors of dentistry, podiatric physicians, chiropodists, architects, veterinarians, attorneys at law, and life insurance agents.
You can form other corporations for the side services you provide.
Thank you for this clear answer, but if may ask three related questions which will be greatly appreciated. as a result of PC corporation;
1- Can I form an S corp status with PC?
2- Would I be personally be liable for lawsuits against my corporation (PC) business (like general liability, work place injury, not malpractice related)?
3- Lastly; would I be personally liable for malpractice claims even with my malpractice insurance is active but the claim exceeds the insurance coverage limit?
Thank you in advance ($5 for each) if you can answer any of these questions, and if unable please recommend or refer me to a resource that could.
1. Sure you can elect S corp status. S election is an IRS tax status and has nothing to do with corporate formation under state law. You can elect S corp status for your PC. My law firm is structured exactly that way under Florida and federal tax laws.
2. The point of a PC under the law is that certain professional service providers shouldn't be able to shield themselves from personal liability for services they provide. For example, I'm an attorney. The law will not let me simply form a corporation and shield myself personally from services I provide (the logic makes perfect sense). This is why you and I must use this type of corporation. Under 621.07, Florida Statutes:
621.07 Liability of officers, agents, employees, shareholders, members, and corporation or limited liability company.-Nothing contained in this act shall be interpreted to abolish, repeal, modify, restrict, or limit the law now in effect in this state applicable to the professional relationship and liabilities between the person furnishing the professional services and the person receiving such professional service and to the standards for professional conduct; provided, however, that any officer, agent, member, manager, or employee of a corporation or limited liability company organized under this act shall be personally liable and accountable only for negligent or wrongful acts or misconduct committed by that person, or by any person under that person's direct supervision and control, while rendering professional service on behalf of the corporation or limited liability company to the person for whom such professional services were being rendered; and provided further that the personal liability of shareholders of a corporation, or members of a limited liability company, organized under this act, in their capacity as shareholders or members of such corporation or limited liability company, shall be no greater in any aspect than that of a shareholder-employee of a corporation organized under chapter 607 or a member-employee of a limited liability company organized under chapter 608. The corporation or limited liability company shall be liable up to the full value of its property for any negligent or wrongful acts or misconduct committed by any of its officers, agents, members, managers, or employees while they are engaged on behalf of the corporation or limited liability company in the rendering of professional services.
The botXXXXX XXXXXne is that you still have the benefit of corporate protection, but not in relation to personal services provided, as stated above.
3. Yes, per the terms of the statute as stated above. If you haven't already done so, you should read through the statute. I think it would provide some clarity. Here's the link for you:
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).