Business Structures for Professional Firms

As you can see, there’s a professional version of three of the most common business structures: the corporation, the limited liability company, and the professional limited partnership. Each of these shields you from liability for a co-owner’s mistakes (although you would still remain responsible for your own errors). With the liability issue addressed, choosing a business structure can be based on your fundraising needs and taxation preferences.

If you’re a professional who is subject to the possibility of high levels of liability, it’s a pretty easy call. These structures were all specifically designed to address the needs of professional firms like yours.