Although there is no “silver bullet” that can provide physicians total protection from the claims of malpractice attorneys, there are several low or no cost strategies that can provide a corporate veil for physicians for significant asset protection, or to enhance the asset protection physicians may already have.
First, don’t make it easy for a malpractice attorney to “pierce the corporate veil.” You already know that practicing through a professional corporation can keep your assets safe from malpractice claims against your partners and employees. But are you making it easy for a plaintiff’s attorney to “pierce the corporate veil”? Implementing the following immediately will enhance the corporate veil for physicians:
• Have the corporation or LLC hold regular meetings of the board of directors and shareholders (or managers and members of an LLC), and keep minutes of these meetings.
• Sign documents for the practice only in your capacity as a corporate or LLC officer.
• Have a physicians’ lawyer review the legal, insurance, financial and tax foundations of your practice regularly to assure they are appropriate.