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Comments

sbrake

I haven't yet formed a separate business entity, but was planning to form one (an LLC) thinking that it might offer some protection against whatever tort liability risk was out there (other than malpractice). Not sure what that might be (no slip-and-fall in a virtual office!), but...belts and suspender....

Chuck Newton

Save the money and buy the Porsche instead. However, you might have thought of another niche. Virtual slip and fall practice.

Gordon

Chuck -

Good piece, and generally I agree with your points. I will mention, though that there are reasons other than asset protection for which professionals form entities.

For one, some corporations can take full advantage of tax deductions for certain expenses like health insurance, medical reimbursement plans, employee benefits programs, and retirement planning that are not available to sole proprietors.

In the entertainment industry, in which I work, many entertainers form so-called "loan-out" corporations to afford them these tax-related benefits, and to streamline certain deals for personal services.

In some ways, solo attorneys are similarly situated to entertainers. We work for multiple employers (clients), are highly paid, and are responsible for our own health insurance, benefits, and retirement planning.

Personally, I do NOT have a separate entity, but I can see that there are some benefits you haven't considered.

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