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Home > Services > Physician Wealth Preservation Strategies > FAQ's - Just For Physicians

FAQ's - Just For Physicians

Frequently Asked Questions by Doctors about Business

Q.  How important is Asset Protection in the medical business?
A.  A physician’s chance of being sued is actually going down.  The problem is that if a doctor is sued, they may face a lawsuit with a large monetary award.  Should this happen a doctor could lose a lot of their assets.  Any person can be named in a lawsuit.

Q.  How important is corporate structure?
A.  This question has two answers.  (Moreover, they are questions.) A) How important do you feel that it is to reduce your due taxation? and B) How positive do you want to be that your assets (including your home) are safe from creditors and lawsuits?

If you think these are important issues, then you should investigate and consult an expert for an analysis of your corporate structure.

Q.  How important is insurance in my estate plan?
A.  Sometime people who feel they have enough money for retirement neglect basic lines of defense when it comes to Estate Planning.  Insurance is one of them.  Often people do not want to pay for Long Term Care Insurance, Director’s and Operators Insurance, Errors and Omissions and other policies that may seem unnecessary.

It is probably safe to say that an ounce of prevention is worth a pound of cure.

Q.  How can I take off my professional expenses when I get paid by W2?
A.  If your Corporate Board of Directors will agree, you can use a Professional Corporation (P/C.) instead of a W2.  You can read aCbout this in the section titled The Perfect Office.

Q.  Is it all right to be a Sole Proprietor?
A.  A Sole Proprietor is a very risky venture for anyone with assets or who intends to make money.  There is nothing standing between the person who runs the company (yourself) and the person responsible for any damages brought forth in a lawsuit or by creditors.  There are better options.

Q.  Should I form a Partnership?
A.  A Partnership may make you personally liability for the mistakes of your partners.  This should be enough said in explanation.

Q.  What is more important, Asset Protection or reducing my taxes?
A.  For anyone in a high-risk profession, there should be no compromise in protecting your assets, with all the legal tools afforded by the legislation and the IRS Code.

Q.  Are the Accounts Receivable in a medical office attainable by creditors and litigators?
A.  Yes, all unprotected assets can be taken, garnished, levied or placed with a lien by creditors.  There are ways to protect these assets also.

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