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Comment by jedberg | Hacker News Reader

There is a strange bit about being a doctor or lawyer -- you aren't allowed to for a C corp for your own practice. However, if someone else forms the corp and you work for them, then you get all the protections of a C corp, as long as you don't own the majority share.

So one thing they add is legal protection.

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> There is a strange bit about being a doctor or lawyer -- you aren't allowed to for a C corp for your own practice.

1. In at least some U.S. jurisdictions (and possibly all), lawyers' practices can indeed be set up as corporations; my former firm was an example. The individual lawyers in the firm are still personally liable for their own malpractice and for that of any junior attorneys and/or staff whom they supervise. The corporate form does protect them from personal liability for the office lease, etc., unless they've personally guaranteed the lease, which is not uncommon. (Don't know how it works for doctors but I assume it's similar.)

2. "C corp" is an income-tax classification; AFAIK it has nothing to do with non-tax liability.

C Corp is a legal entity classification, along the lines of S Corp, LLC, partnership, and sole proprietorship. What might be confusing is that S corps can use pass-through taxation or retained earnings (C Corp) depending on what the owners choose. There are various forms of partnerships with different levels of liabilities to the partners: general partnership, limited partnership (LP), limited liability partnership (LLP), etc. Partnerships generally provide much less protection than a C Corp.

I'm sure there is insurance cheaper than 50% of all profit.

2 docs +1 guy forms a corp with shares ratio 48-48-2, and done?

So find a doctor you trust from medical school, and you hire him for your C-Corp and he hires you for his?

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