by Corporate Relations and Business Strategy Staff
There are a variety of choices for the legal organization of your practice — including sole proprietorship, general partnership, corporation and limited liability company (LLC). Each structure has its advantages and disadvantages.
If you have a business plan, reviewing that document is a good place to start the process of choosing an organizational model. It is important to consider the following factors in deciding how to structure or restructure your practice:
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the type of services you offer
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the size of your practice
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the amount of control you want to have over administrative operations
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how much organizational structure you are comfortable with
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the likelihood of being involved in a lawsuit reflecting, for example, the types of services you provide or plan to provide
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the practice’s expected profit or loss
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your need to access capital
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the tax implications of various practice models
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plans for the future of your practice
Four basic legal structures are described below, along with their respective pros and cons.