What are the duties and responsibilities of the shareholders in a Florida professional association?



 In a previous blog, I discussed one of the benefits of being a Florida professional association as being that each of the shareholders in a Florida professional association are not personally liable for the malpractice of the other owners of the professional association. Although it is by far the biggest benefit to having a Florida professional association, that is not the only benefit of being a professional association. The benefits and consequences associated with a Florida professional association are as follows:

Tax flexibility. A professional association can be taxed as a C corporation or an S corporation. If a C corporation, the business can take higher deductions for health insurance and other medical expenses whereas an S corporation will save the owners social security and medicare taxes. Additional filing requirements. Lawyer firm in Pennsylvania. Unlike a typical Florida corporation, a Florida professional association requires that a specific business purpose be included in the Articles of Incorporation. Shareholders must be licensed. The shareholders of a Florida professional association must be licensed. For example, the owners of a law firm must be licensed attorneys and not anyone else. The Florida professional association, as long as it is created appropriately, offers additional asset protection to its owners – beyond that of what a typical Florida corporation would provide.

To learn more about a Florida professional association, please contact our business law attorneys at Wood, Atter & Wolf, P.A. located in Jacksonville and Ponte Vedra Beach, Florida.

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