Quite often professionals think of the phrase “Asset Protection” as a guaranteed, magical, infallible means of protection. Medical practice asset protection is really about maximizing litigation deterrence, optimal obstacle design work, and leveraging your power in the settlement process, as opposed to magically creating supernatural shields. The more well thought out, properly created obstacles or layers of protection your attorney designs for you, the less likely you will be forced to spend years of your life and thousands (or even millions) of dollars litigating predatory or frivolous claims.
The first step to a comprehensive medical practice asset protection plan is for your lawyer to select the proper business entities to hold your various medical practice (and even personal) assets. Your lawyer should select your entities based on your business goals and asset protection objectives. Every medical practice is different, so every medical practice asset protection plan must be different and customized to your vision and expectations. Be careful. Many jaded advisors or advisors who are not knowledgeable in the field of asset protection, (even attorneys) will throw all or most of your assets in one or two LLC’s, bill you, and call it a day. Consequently, you, your loved ones, and your medical practice may be left unprotected in many circumstances. The various business entities that can be utilized include:
- Limited Liability Company
- Professional Limited Liability Company
- General Partnership
- Limited Partnership
- Limited Liability Partnership
- Limited Liability Limited Partnership
- Family Limited Partnership
- Professional Limited Liability Partnership
- Private Company Limited By Shares
- Public Company Limited By Shares
- Irrevocable (Domestic/Foreign) Trusts
- Revocable (Domestic/Foreign) Trusts
- International Business Company/Corporation
The availability of these entities may depend upon in what state and/or country you and your attorney desire to establish the entity.