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Roger, Attorney
Category: Legal
Satisfied Customers: 31781
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I have an accounting and insurance business, right know I am

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I have an accounting and insurance business, right know I am solepropietorship, and I am considering going to LLc or S corporation for liability protection, but does that really work for tax preparers, Enrolled Agents and Insurance agents?, Because I had understood that even though my company is a LLC or S Corporation if somebody sue me for accounting or insurance errors I am as a person still liable (my only protection would be to have an Errors and Ommissions coverage and also an ummbrella)

So is it worthy to me to become a corporation?, why, why not?, or just go with errors and omisions coverage and one umbrella

Roger : Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question. I'll be glad to assist.
Roger : You are correct that your professional license is not protected by the LLC or S-Corp, and if you commit an error or omission, your license would be impacted - - the degree of which would depend on the error or omission.
Roger : However, it's still a good idea to have an LLC or S-Corp because you can still protect your personal property/assets with the corporate entity.
Roger : Thus, if you were sued for an error, as long as you were working for the LLC/S-Corp, your personal assets would not be exposed to a judgment.
Roger : Of course your E&O coverage would step in as well in the event that this occurred, but if there's no coverage for some reason, your coverage lapses, or some other unexpected event occurs,
Roger : the LLC or S-Corp would provide protection from personal liability.

ok, now which entity is better for my kind of business, LLC, S Corporation?, somebody told me about LLCP? (for Professionals)?

Roger : An LLC is generally the best and easiest legal entity to establish and operate as the bookkeeping is simplest. Also, there are tax advantages to an LLC, such as pass-through taxation.

is there something like llc for professionals, I read something about LLC P?

Roger : Yes, it's called a PLLC.
Roger : A professional limited liability company.

so, what is that one for?

Roger : It's for professional organizations. Here's a good link that outlines the eligible businesses in Ca:

mm California does not allow this kind of entitiy


"Every state, with the exception of California, allows PLLCs, although state laws vary on what type of professionals must form one. In California, licensed professionals can form a professional corporation.\

Roger : Yeah, I was just looking at that as well. ....

so then my best option would be LLC

Roger : There's no such thing as a PLLC in Ca. Only an LLC is possible.

ok Roger, thank you very much for your help

Roger : No problem. Glad to help.
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