Question

Are physicians getting an unfair advantage as far as paying their fair share of taxes when they form a professional corporation?

If one of the main reasons why people form corporations is to insulate themselves from personal liability, do you believe this protection should be available to physicians and other incorporated medical professionals or do you think that would cause more harm than good?

If physicians are allowed to incorporate and protect their personal assets from patients who sue them for malpractice, how will this affect the patient and would it be in the public interest?

Answer 1

Professional corporation is a owned corporation and operated by more members or one member of the same profession..certain professional members like physicians,layer,accountants and specialist can operate this professional corporation..This service was generally restricted..most advantages of this practice which ability to defer taxes in two levels..One is from corporate level and one more is from personal level when they need more income..corporate tax rate on profession income commonly lower than personal marginal tax rate..Professional income corporation results less immediate taxes payable make more after-tax funds in corporation this can be used to earn additional income and investment..For lower income physicians as a share holder,this incorporate business make advantages their lower marginal tax rates..it was less applicable to professional corporation in territories where share ownership is restricted to member of particular professional..
This protection from physician and other incorporated medical professional which make them against some lawsuits..personal assets having less risk with law suit than professional corporation,liability by the corporate entity in a professional corporation.. they should follow some standards by governing professionals ..malpractice and negligence make liable to share holders..professional incorporation can provide financial advantages and tax benefits..but it make liability to their shareholders..this is a multidisciplinary practice within the profession..
When professional physician involve in personal assets from patients who sue them from malpractice it affect the public interest and patient safety..Medical malpractice action directly liable for their profession,legal concept of this liability proving fault..These physician having primary duty to protect patient and providing quality care by increasing their safety..If they are independent contractor and commits malpractice hospital will not take responsible..Legal doctrine very important to plaintiff in medical malpractice case..