F*ck Positivity: The Counterintuitive Guide to Living a Good Life
The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life is a 2016 self-help book by Mark Manson. The book argues that conventional wisdom in the self-help industry is overly focused on positivity and unrealistic expectations, and that this can actually be harmful to people’s well-being. Instead, Manson argues that we should focus on living a life that is meaningful and authentic, even if it is not always happy.
The Life-Changing Magic of Not Giving a F*ck: How to Live a Happier, More Fulfilling Life
The book is divided into three parts:
Part I: The Problem with Positive Thinking
Part II: How to Not Give a Fk**
**Part III: **The Power of Vulnerability
In Part I, Manson argues that the self-help industry is too focused on positivity and unrealistic expectations. He points out that life is full of suffering and that trying to be happy all the time is not only unrealistic, but it can also be harmful. Instead, Manson argues that we should focus on accepting the reality of our lives, both the good and the bad.
In Part II, Manson provides a framework for not giving a fk**. He argues that we should focus on the things that are truly important to us, and that we should not waste our time and energy on things that do not matter. He also provides a number of practical strategies for not giving a fk**, such as accepting our limitations, learning to say no, and focusing on the present moment.
In Part III, Manson discusses the importance of vulnerability. He argues that vulnerability is essential for living a meaningful life. He also provides a number of strategies for being vulnerable, such as being honest with ourselves and others, and taking risks.
The Subtle Art of Not Giving a F*ck has been praised for its refreshingly honest and straightforward approach to self-help. The book has also been criticized for its profanity and its sometimes harsh tone. However, there is no doubt that the book has struck a chord with many readers, and it has become a bestseller.
Here are some of the key takeaways from The Subtle Art of Not Giving a F*ck:
Life is full of suffering.
Trying to be happy all the time is unrealistic and harmful.
We should focus on the things that are truly important to us.
We should not waste our time and energy on things that do not matter.
Vulnerability is essential for living a meaningful life.
We should be honest with ourselves and others.
We should take risks.
The Subtle Art of Not Giving a F*ck is a thought-provoking and challenging book that can help us to live more meaningful and authentic lives. If you are looking for a self-help book that is different from the rest, then this is definitely worth a read.
The Secret to Power: 48 Laws to Help You Achieve Success
The 48 Laws of Power is a book by Robert Greene that outlines 48 strategies for gaining and maintaining power. The book is divided into three parts:
The Laws of Power (laws 1-36): These laws focus on the basic principles of power, such as how to attract attention, how to avoid making enemies, and how to use deception to your advantage.
The Laws of Seduction (laws 37-48): These laws focus on the art of persuasion, such as how to create desire, how to manipulate people’s emotions, and how to use flattery to your advantage.
The Laws of Mastering People (laws 49-56): These laws focus on how to maintain power over others, such as how to create a cult of personality, how to crush your enemies, and how to avoid becoming a victim of power.
The 48 Laws of Power is a controversial book, with some people arguing that it is amoral and Machiavellian. However, the book has also been praised for its insights into the nature of power and for its practical advice on how to achieve success.
Here are some of the most important laws from The 48 Laws of Power:
Never outshine the master. This law is about knowing your place and not trying to compete with those who are more powerful than you.
Conceal your intentions. Don’t let people know what you’re thinking or planning, as this will give them an advantage over you.
Use selective honesty and generosity to disarm your victim. Be generous with your words and actions, but only to those who you can trust.
Win through your actions, never through an argument. Don’t waste time arguing with people, as this will only make you look weak. Instead, let your actions speak for themselves.
Learn to keep people dependent on you. This will give you power over them, as they will need you to survive.
Enter action with boldness. Don’t hesitate, as this will make you look weak. Instead, take action with confidence, even if you’re not sure what you’re doing.
The 48 Laws of Power is a complex and thought-provoking book. It is not a book for the faint of heart, as it deals with some dark and disturbing subjects. However, if you are interested in learning more about the nature of power and how to achieve success, then The 48 Laws of Power is a book that you should read.
Here are some additional thoughts on The 48 Laws of Power:
The book is not amoral, but it is amoral. It does not judge whether the laws are good or bad, but it simply presents them as they are.
The book is not a guide to becoming a dictator or a tyrant, but it is a guide to achieving success in any field.
The book is not for everyone, but it is a valuable resource for those who are willing to learn from it.
If you are interested in learning more about The 48 Laws of Power, I recommend reading the book itself. There are also many online resources that discuss the book and its laws.
Selling a business can be a complex and daunting process. There are many factors to consider, and it is easy to make mistakes that can cost you money or derail the sale altogether.
Common mistakes to avoid when selling your business
Here are some of the most common mistakes to avoid when selling your business:
Not maintaining peak operations. It is important to keep your business running smoothly throughout the sale process. This means continuing to provide excellent customer service, meeting deadlines, and generating revenue. If your business starts to decline in value, it will be less attractive to buyers.
Not having a clear exit strategy. Before you start selling your business, you need to have a clear plan for how you want the sale to go. This includes things like the asking price, the terms of the sale, and how you will handle the transition to new ownership. Having a clear exit strategy will help you avoid making impulsive decisions that could hurt your bottom line.
Not being prepared. Before you start marketing your business, you need to make sure you have all of your ducks in a row. This includes having up-to-date financial statements, a clean title, and all of the necessary legal documents. Being prepared will make the sale process go more smoothly and help you get the best possible price for your business.
Not maintaining confidentiality. Once you start marketing your business, it is important to keep the sale confidential. This means not telling your employees, customers, or suppliers about the sale until it is finalized. If word gets out too early, it could hurt your business’s reputation and make it more difficult to find a buyer.
Not getting professional help. Selling a business is a complex process, and it is important to get professional help if you want to get the best possible price. A business broker or M&A advisor can help you market your business, negotiate the sale, and close the deal.
Not being prepared for negotiations. Buyers will often try to negotiate the price of your business down. It is important to be prepared for these negotiations and to have a realistic idea of what your business is worth. If you are not prepared, you could end up selling your business for less than it is worth.
By avoiding these common mistakes, you can increase your chances of selling your business for the best possible price.
In addition to the above, here are some other tips for selling your business:
Hire a good business broker. A good business broker will have the experience and knowledge to help you market your business and find a qualified buyer.
Price your business competitively. It is important to price your business competitively, but not too low. If you price your business too low, you could end up selling it for less than it is worth.
Market your business effectively. There are many ways to market your business, such as online listings, print ads, and networking. Make sure you market your business to the right audience.
Be patient. Selling a business can take time. Do not get discouraged if you do not find a buyer right away. Keep marketing your business and eventually you will find the right buyer.
Selling a business can be a complex and challenging process, but it can also be a very rewarding experience. By following these tips, you can increase your chances of selling your business for the best possible price.
The Psychology of Wealth: How to Think Like a Millionaire
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel is a book that explores the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.
The book is divided into 19 short stories, each of which explores a different psychological aspect of money. Some of the topics covered include:
The importance of staying humble and avoiding overconfidence when it comes to money.
The paradox of wealth, which is that the more money you have, the less happiness it brings.
The power of compounding, which is the idea that small amounts of money invested over time can grow exponentially.
The importance of saving for the long term, rather than trying to get rich quick.
The dangers of debt, and how it can trap you in a cycle of financial insecurity.
The book is full of insights and advice that can help you make better financial decisions. It is also a refreshingly honest look at the psychology of money, and how our emotions can often lead us to make poor financial choices.
One of the key takeaways from the book is that financial success is not just about what you know, but also about how you behave. The author argues that the best way to improve your financial situation is to focus on developing good financial habits, such as saving regularly, investing for the long term, and avoiding debt.
The Psychology of Money is a must-read for anyone who wants to improve their financial situation and achieve financial freedom. It is a well-written and insightful book that will challenge your thinking about money and help you make better financial decisions.
Here are some of the key lessons from the book:
Money is a tool, not a goal. The goal of money should be to help you live a better life, not to become rich for the sake of being rich.
The more money you have, the less happiness it brings. This is because money can’t buy happiness. There are other factors that are more important for happiness, such as relationships, health, and purpose.
Compounding is the most powerful force in the universe. This means that small amounts of money invested over time can grow exponentially.
Saving for the long term is the best way to build wealth. This is because you have more time for your money to grow.
Debt is a trap. It can be very difficult to get out of debt once you’re in it.
Your financial habits are more important than your financial knowledge. This is because your habits will determine how you behave with money.
The Psychology of Money is a valuable resource for anyone who wants to improve their financial situation. It is a well-written and insightful book that will challenge your thinking about money and help you make better financial decisions.
Can’t Hurt Me: Master Your Mind and Defy the Odds by David Goggins
The David Goggins Story: How a Man Overcome Abuse, Obesity, and the Navy SEALs
Can’t Hurt Me is a memoir by David Goggins, a retired Navy SEAL and ultra-endurance athlete. In the book, Goggins shares his story of overcoming a difficult childhood and achieving incredible success through sheer determination and grit.
Goggins grew up in a violent household and was subjected to physical and emotional abuse. He was also overweight and struggled with obesity throughout his childhood. However, Goggins refused to let his circumstances define him. He decided to turn his life around and began training for the Navy SEALs.
Goggins was eventually accepted into the SEALs, but he faced even more challenges during his training. He was the oldest and heaviest recruit in his class, and he was constantly pushed to his limits. However, Goggins never gave up. He pushed himself harder than anyone else, and he eventually graduated from BUD/S.
After graduating from BUD/S, Goggins went on to have a successful career as a Navy SEAL. He served in Iraq and Afghanistan, and he was awarded two Silver Stars and a Bronze Star for his valor. He also became an ultra-endurance athlete, competing in events such as the Badwater Ultramarathon and the Ultraman World Championships.
In Can’t Hurt Me, Goggins shares his insights on how to overcome pain, fear, and self-doubt. He teaches readers how to push themselves beyond their limits and achieve their goals. He also shares his philosophy on life, which is based on the principles of hard work, discipline, and perseverance.
Here are some of the key takeaways from the book:
We all have the potential to achieve great things.
The only thing that limits us is our own mind.
Pain is temporary, but quitting lasts forever.
The only way to overcome fear is to face it head-on.
Discipline is the key to success.
Never give up on your dreams.
Can’t Hurt Me is a powerful and inspiring book that will challenge you to push yourself beyond your limits. If you are looking for a book that will help you achieve your goals, then Can’t Hurt Me is a must-read.
Here are some additional thoughts on the book:
Goggins’s story is a reminder that we are all capable of great things if we are willing to put in the hard work.
The book’s message of discipline and perseverance is an important one, especially in today’s world where it is easy to give up when things get tough.
Can’t Hurt Me is a motivating and inspiring read that will leave you feeling challenged and inspired to achieve your goals.
I highly recommend Can’t Hurt Me to anyone who is looking for a book that will help them achieve their goals and live their best life.
Outlive is a book about how to live longer and better. It is written by Dr. Peter Attia, a physician and researcher who is passionate about the science of longevity.
The book is divided into three parts:
Part I: The Four Horsemen
Part II: The Interventions
Part III: The Art of Longevity
In Part I, Dr. Attia discusses the four main diseases that are responsible for most deaths in the developed world: heart disease, cancer, Alzheimer’s disease, and type 2 diabetes. He explains how these diseases are caused by chronic inflammation and how we can reduce our risk of developing them by making lifestyle changes.
In Part II, Dr. Attia discusses specific interventions that we can take to improve our health and longevity. These interventions include:
Nutrition: Eating a healthy diet that is low in processed foods and high in whole foods.
Exercise: Getting regular exercise that is moderate in intensity and duration.
Sleep: Getting enough sleep each night.
Stress management: Learning how to manage stress in our lives.
Mindfulness: Practicing mindfulness meditation to improve our mental and emotional health.
In Part III, Dr. Attia discusses the art of longevity. He argues that longevity is not just about living longer, but also about living better. He suggests that we should focus on our relationships, our passions, and our sense of purpose in life.
Outlive is a comprehensive and well-researched book that provides a wealth of information about the science of longevity. It is an essential read for anyone who wants to live longer and better.
Here are some of the key takeaways from the book:
Chronic inflammation is the root cause of many of the diseases that shorten our lifespan.
We can reduce our risk of developing chronic diseases by making lifestyle changes, such as eating a healthy diet, exercising regularly, and getting enough sleep.
There are many interventions that we can take to improve our health and longevity, including nutrition, exercise, sleep, stress management, mindfulness, and relationships.
Longevity is not just about living longer, but also about living better.
If you are interested in learning more about the science of longevity, I highly recommend reading Outlive. It is a well-written and informative book that will give you the tools you need to live longer and better.
Atomic Habits: Breaking Down James Clear’s Revolutionary Approach to Habit Formation
Atomic Habits is a self-help book by James Clear that provides a step-by-step framework for building good habits and breaking bad ones. The book is based on the idea that small, incremental changes can lead to big, lasting results.
Clear begins by defining what a habit is and how it works. He explains that habits are formed through a process of cue, craving, response, and reward. The cue is a trigger that tells our brain to go into automatic mode. The craving is the desire for the reward that we associate with the habit. The response is the behavior that we engage in, and the reward is the feeling of satisfaction that we get from completing the behavior.
Clear then goes on to discuss the four laws of behavior change. These laws are:
Make it obvious. The first law of behavior change is to make the desired behavior obvious. This means making it easy to start and complete the behavior. For example, if you want to start exercising, you could put your workout clothes out the night before so that you’re more likely to get up and get moving in the morning.
Make it attractive. The second law of behavior change is to make the desired behavior attractive. This means associating the behavior with positive feelings and outcomes. For example, if you want to eat healthier, you could cook your meals at home so that you know exactly what’s going into your food.
Make it easy. The third law of behavior change is to make the desired behavior easy. This means reducing the barriers to entry and making the behavior as simple as possible. For example, if you want to learn a new language, you could download a language learning app on your phone so that you can practice whenever you have a few minutes of free time.
Make it satisfying. The fourth law of behavior change is to make the desired behavior satisfying. This means rewarding yourself for completing the behavior. For example, if you want to save money, you could put a dollar in a jar every time you resist the urge to buy something you don’t need.
Clear then provides a number of practical strategies for applying the four laws of behavior change. He discusses how to set goals, track your progress, and deal with setbacks. He also provides examples of how to apply the four laws to different areas of your life, such as your health, your finances, and your relationships.
Atomic Habits is a well-written and informative book that provides a practical framework for building good habits and breaking bad ones. The book is full of helpful tips and strategies, and it is easy to read and understand. If you’re looking for a way to improve your life, Atomic Habits is a great place to start.
Here are some additional key takeaways from the book:
The best way to change your habits is to focus on making small, incremental changes.
It’s important to track your progress so that you can see how you’re doing and stay motivated.
Don’t be afraid to experiment with different strategies until you find what works best for you.
Don’t give up if you slip up. Just pick yourself up and start again.
Atomic Habits is a valuable resource for anyone who wants to improve their life. It’s a book that I highly recommend.
How to Choose the Best Business Formation Lawyer for Your Needs
It is important to work with a lawyer who is knowledgeable of the formation process of your company. The more experienced they are, the better your chances are that your business will be created in a way that has best protection of assets and reduced risks.
Choosing the right business formation lawyer is an important decision for any business owner. It can be difficult to know which law firm to choose because there are so many options available. That’s why it’s important to do your research before settling on one, so you know if they have the experience you need and if they’re qualified.
A Brief Guide to Choosing the Best Business Formation Lawyer
Your choice of a business formation lawyer is important. Make sure the lawyer does formations regularly. Lawyers are like doctors. You would not necessarily want a litigator to form your business any more than you would have your heart doctor do brain surgery or deliver a baby. A business formation lawyer who has litigation experience is important as many business lawyers have never had to deal with problems that are exposed in litigation.
Let’s talk about your situation, just give us a call at 210-690-3700.
Why Start a Business?
Starting a business is no easy task. Businesses are hard enough to run, but the risks of starting your own business are even higher.
The main reason for starting your own business is that you want to be in control of your life and not answer to someone else.
Some people start their own businesses so they can create more jobs in their communities, while others do it so they can live out their passion and work on something they care about.
Starting a business means taking care of all the responsibilities, which can include accounting, taxes, marketing strategies and more.
What is the Process for Starting a New Business?
Starting a new business is always an exciting endeavor. The process of starting a business can be very complicated and involved, but with the right guidance it can be done with ease.
This article will outline the basic steps to start a new business for you to read and understand.
Start by determining what type of business you would like to start. This step will help determine the next steps in your business formation process.
The next step is to file articles of incorporation with your state’s Secretary of State’s office or Division of Corporations. Ensure that you have all the necessary information for this step, including shareholders, company name, address, etc.
After filing articles of incorporation, you’ll need to obtain licenses and permits that are required by law for your particular type of industry or profession – these vary from state to state.
You also need to start with the end in mind. How will you get out of the business? What if you and your co-owners don’t want to play together anymore? A well crafted buy sell agreement can be crucial and avoid costly litigation in the future.
The In’s and Out’s of the Professional Corporation – What You Need to Know
This article is about the ins and outs of how to set up a company as a professional corporation.
A professional corporation (PC) is a company that limits its liability to its shareholders. This lets the company’s shareholders have limited responsibility for the company’s actions and debts. They can do this by buying shares of the company, which are meant for sale to people who qualify as professionals in a particular field or profession.
The advantages of a PC include: 1) protection from unlimited liability, 2) ease of transferability of ownership interests, 3) continuity in management, 4) continuity in operations, 5) continuity in business location, 6) professional associations with other professionals and 7) possible tax benefits.
Let’s talk about your situation, just give us a call at 210-690-3700.
What is an LLC and How Can It Help Your Business?
An LLC is a business structure that can offer a level of liability protection and tax benefits to its owners. The LLC may also be structured as a C-corporation, S-corporation, or partnership.
The liability protection in an LLC might include how the members are not personally liable for the company’s debts and obligations.
In general, when you form an LLC, you need to file paperwork with your state’s Secretary of State’s office and pay a few hundred dollars to cover filing fees.
What is a General Partnership and How Does it Compare to an S-Corporation or Limited Liability Company?
A general partnership is a legal form that is made up of at least two people. Partners share the same duties and liabilities for business. If a partner mismanages an asset, they are liable for it if another partner agrees to cover the debt.
An S-corporation is a type of corporation that limits its liability to shareholders. Shareholders have limited liability if their company fails financially, so they don’t have to worry about being sued personally by investors or lenders as long as it’s an S-corporation.
A limited liability company (LLC) offers the benefits of both corporations and partnerships, but with less formal structure than corporations.
How to Choose the Best Business Formation Lawyer for Your Needs
It is important to work with a lawyer who is knowledgeable of the formation process of your company. The more experienced they are, the better your chances are that your business will be created in a way that has best protection of assets and reduced risks.
Choosing the right business formation lawyer is an important decision for any business owner. It can be difficult to know which law firm to choose because there are so many options available. That’s why it’s important to do your research before settling on one, so you know if they have the experience you need and if they’re qualified.
Conclusion: A Brief Guide to Choosing the Best Business Formation Lawyer
Your choice of a business formation lawyer is important. Make sure the lawyer does formations regularly. Lawyers are like doctors. You would not necessarily want a litigator to form your business any more than your would have your heart doctor do brain surgery or deliver a baby. A business formation lawyer who has litigation experience is important as many business lawyers have never had to deal with problems that are exposed in litigation.
Let’s talk about your situation, just give us a call at 210-690-3700.
The Complete Guide to Business Tort Lawyers and How They Can Ensure Your Business is Protected
The Importance of Hiring a Business Torts Lawyer
A business tort lawyer is an attorney that specializes in business litigation. They may also provide expert advice on important matters like commercial contracts, franchising agreements, and trademark protections.
The best way to protect your business is by making sure it has the proper insurance coverage. A good business insurance lawyer will not only help you purchase the right kind of coverage for your company but also know how to deal with claims should they arise.
What are the Different Types of Business Torts?
Torts are a form of civil wrong that can cause injury to any person. In this lesson, we will be going over the different types of torts in Texas.
In general, there are two types of torts: intentional and negligent. However, in Texas, there are a few more specific ones that you may encounter in a small business or a professional context.
There are many types of torts that can be committed against a small business. These torts include but are not limited to:
1) Negligence: This is when one person or entity fails to exercise the degree of care that an ordinary person would in the same situation. This may range anywhere from not exercising due caution when entering an intersection, to not exercising proper care when assembling a product, or even keeping proper maintenance of public property.
2) Negligent misrepresentation. When somebody makes a statement about something without having full knowledge about it and it causes harm to someone.
3) Interference with contractual relations which is when somebody intentionally interferes with an agreement between two other parties for their own benefit even though they did not sign the contract themselves or they did not have any stake in the agreement at all.
Who is Likely to be Sued by a Plaintiff?
The plaintiff is likely to be someone who has been harmed in some way by the defendant, such as a person who has been injured by the negligence of the defendant.
Some of the most common plaintiffs are:
– Victims of car crashes or other vehicle accidents;
– A passenger in a vehicle who was injured when the driver negligently lost control;
– A person injured at work due to an employer’s negligence.
What are the Steps I Should Take if I am Being Sued?
If you are being sued, or think that you might be sued, there are some steps you should take and considerations and questions to ask yourself.
Some of the first steps to take if you think that a lawsuit is forthcoming include:
– Consider whether your conduct was willful
– Consider whether your conduct was negligent
– Consider which party’s interests will be best served by a lawsuit or settlement negotiations
– Consider whether there is a potential for punitive damages
Conclusion: Hire a Business Tort Lawyer Today to Ensure Your Business is Protected Tomorrow
Call us today at 210-690-3700 to discuss your situation.
The reason a professional such as a lawyer or doctor would incorporate his/her business is
(1) To safeguard his or her assets from unlimited responsibility, a professional such as a lawyer or doctor might incorporate his or her business.
(2) to ensure that, in the event of a hostile takeover, another professional firm would not take control and make decisions.
(3) to limit his or her obligation for other assets.
(4) to be in compliance with the law, as insurance companies need corporations for billing.
Many physicians who work as independent contractors are debating whether or not to incorporate. Physicians are shielded from some sorts of liability and may be able to lower taxes on business profits by incorporating their practice as a distinct business entity.
Some physicians appear to overestimate the benefits of incorporation without taking into account the cost and time involved in the process. Before incurring the additional cost and complexity of incorporating, a doctor should assess a number of legal, financial, and practical issues. We’ll go over the two largest possible advantages of incorporation: lower liability and tax advantages, to assist you decide which company organization is best for your firm.
Know how to shield yourself from liability.
One of the main reasons physicians prefer to incorporate is to reduce their liability. Doctors can assist protect their personal assets from responsibility in a professional lawsuit by switching from a partnership or single proprietorship to a corporation. However, incorporation only reduces some sorts of liability, so it’s crucial to know what’s covered and what’s not.
Pros: In the event of a lawsuit or unpaid debt, LLCs and other corporate structures (e.g., Professional Corporations, Professional Limited Liability Companies) can operate as a barrier between a physician’s personal and professional assets. If an LLC owes money to a vendor, creditors cannot seize an LLC member’s personal assets. In contrast, if a company member or shareholder is sued for hitting and injuring a pedestrian by accident, the plaintiff will not be entitled to seek damages from the medical practice’s assets.
A doctor who is a sole owner or a partner in a medical partnership, on the other hand, is personally liable for an unincorporated practice’s obligations and liabilities. This arrangement exposes physicians to significant professional and personal risk. Partners in a general medical partnership may be held personally accountable for one another’s medical negligence. Physicians who incorporate are protected not just from the business entity’s liability, but also from liabilities arising from the activities of other physicians in the practice. As a result, combining a practice with many physicians is strongly recommended.
Cons: While incorporation can give essential protection from certain sorts of claims, it does not provide any protection against malpractice responsibility for a physician. Malpractice insurance is the only way to protect yourself from professional malpractice lawsuits.
Furthermore, professional corporations may be held liable in the event of an accident or injury on company property or while driving corporate vehicles. However, only the corporate entity’s assets are exposed in such instances, not the personal assets of members or shareholders. Only high liability limits on business, auto, and property insurance can financially protect your company in the event of such accidents, injuries, or other claims. You can also create separate LLCs for rental properties and other assets (such as equipment) with significant liability exposure, separating them from the running side of your business/practice and providing additional protection to the operating entity. However, adding these assets will add to the complexity and cost of the process.
The bottom line: Physician liability is reduced to some extent by incorporation. Other types of insurance, such as malpractice, business liability, property, and auto insurance, cannot be replaced by it. You must compare the time, expense, and effort of incorporation against the value of reduced liability if you are considering it.
Consider your tax advantages.
Another advantage of forming a medical practice is the opportunity for preferential tax treatment. Incorporation, depending on the sort of business you choose and your financial goals for the practice, might result in significant tax savings. The specific tax benefits of incorporation, on the other hand, varies greatly amongst organizations.
Limited Liability Corporations (LLCs)
A simple LLC allows physicians to form a separate corporate entity that distributes profits (and losses due to operational expenses, equipment and real estate depreciation, and other factors) to LLC members directly. The entity itself is not subject to taxation (although it will have to file an informational tax return.) As a result, your federal and state tax burden as a member of an LLC will be similar to that of a single owner.
You must classify your LLC as an S-Corporation in order to reap the tax benefits of getting compensated as a shareholder rather than just an LLC member. Note that certain states do not allow physicians to form LLCs and instead require them to form professional companies.
S-Corporations
You can choose to be taxed as an S-Corp if you have an LLC. S-Corps have the option of passing through profits in the form of dividends to company shareholders while still being a pass-through organization. As a result, doctors can divide their earnings between salaries and dividends. Dividends are taxed at lower, more favorable rates and are exempt from payroll taxes such as FICA, self-employment, and Social Security and Medicare taxes, resulting in a nearly 15% savings in taxation.
Given the considerable tax advantages of dividends, you may be thinking to yourself, “Couldn’t I just pay myself a pittance and then divert the remainder of the profits to be paid in lower-taxed dividends?” Because the IRS is fully aware of the temptation to utilize this method, S-Corps are frequently subjected to increased tax scrutiny. Payments from an S-Corp to a corporate officer must reflect “fair compensation” for services provided, according to tax law. If auditors feel your salaried income is too low, you could lose all of your incorporation tax benefits and end up in a nasty IRS battle.
As a result, while having an S-Corp allows you to split your income between pay and dividends, you may only be able to cut a small amount of your income. Otherwise, the IRS will see an abnormally low pay as a clear red flag. S-corps also have more stringent management and operation requirements than a standard LLC, such as corporate bylaws, shareholder meetings, and stock distribution rules. Physicians should weigh the costs and complexities of running an S-corp against the tax advantages of dividend income.
C-Corporations
If you’re thinking about starting a business, you’ve probably heard about the benefits of forming a C-corporation. C-Corporations, unlike LLCs and S-Corporations, are not pass-through organizations, and their profits are taxed at corporate rates.
For the most part, a C-corporation tax structure will benefit physicians only if they keep a significant portion of their profits in the practice. You can greatly minimize your taxes on earnings kept within the practice if you plan to keep a major amount of the income in the practice to save up for future needs or expansion. However, if you intend to distribute the majority of the practice earnings in the form of dividends to shareholder physicians, you will be taxed twice.
The Bottom Line: It’s crucial to remember that incorporating isn’t a one-stop shop for immediate tax benefits and liability protection. Forming an LLC protects you from operational liability as well as the misconduct of your fellow members, and certain LLC designs might provide tax advantages. Understanding the scope of these benefits might assist you in deciding whether or not to incorporate.
Physicians should factor in the costs of forming and running a corporation. Depending on the sort of corporation you form, the specific legal and accounting charges will vary. Each year, it might cost anywhere from a few hundred dollars to several thousand dollars.
Only you can decide if the advantages outweigh the downsides after weighing the benefits, costs, and workload of merging your medical practice. You may decide that the convenience of operating as a single proprietor is well worth the somewhat higher liability, depending on the scope of your profits or business ambitions. As the number of partners in your practice grows and your firm grows, you should consult an attorney and/or accountant to evaluate which type of corporation will provide you with the most legal and financial protection.
Another reason a professional such as a lawyer or doctor would incorporate his/her business is limited liability.
What is the meaning of limited liability?
You risk what you put in, is the greatest approach to explain limited liability. In other words, limited liability ensures that a person conducting business does not put his or her personal belongings at danger if the business fails. Any investor, partner, or member of the firm who has limited responsibility under the law cannot be held liable for any unfulfilled company commitments or debts in excess of the amount invested.
Jill and Jack are a couple.
Here’s a straightforward comparison. Jack and Jill are acquaintances. Jill is a fantastic cook, and Jack is a handyman. Both decide to create their own firm in order to profit from their abilities. Renovations are Jack’s main source of income. He purchased his own equipment and used his own name to sell his services. Jack runs his business on his own.
Jill made the decision to create a bakery. Jill has formed a small corporation (an S-Corporation) called Jill’s Cakes, Inc. before entering into business. Jill put her funds into Jill’s Cakes, Inc. as a start-up capital, then purchased her baking equipment and rented her shop on behalf of her business. There are essentially no distinctions between the two ways of doing business as long as things go well for Jack and Jill.
When things go bad, though, the distinctions become apparent. Jack scrubbed the floor before leaving the apartment he had just painted one day, but he forgot to put up a sign. When the owner entered, he slipped on the wet floor and shattered his ankle. He has filed a lawsuit against Jack for medical bills and lost pay. Jill slipped a peanut into the wrong batch of batter, triggering a serious allergic reaction in one of her customers. That consumer has filed a lawsuit against her for medical expenses as well as pain and suffering.
What is the danger to Jack and Jill? Jack is putting everything he owns on the line, including his job equipment, truck, home, and personal items. Jack must sell everything he owns to satisfy the judgment as long as it exists. Jill is just putting her business assets on the line: her culinary equipment, cash reserves, and whatever else Jill’s Cakes, Inc. owns. Her personal belongings, such as her car and residence, are, nevertheless, secure. Her company may go bankrupt, but her life will not be devastated (totally).
This anecdote, of course, depicts the worst-case situation. Many firms thrive without encountering many problems. However, many businesses fail, and it is so simple for a business owner to benefit from limited liability that everyone should.
Keeping Liability to a Minimum
Several forms of company structures provide limited liability protection to their owners. Corporations and limited liability companies are the most common (LLC). Each of these entities has its own set of benefits and downsides, but they both provide limited liability protection to their owners.
In the context of limited liability, there are a few points to keep in mind. To begin, a business must be well-maintained in order to provide the full liability protection that it was created to provide. In other words, if a corporation is simply a shell, but is conducted as if it is one and the same as the person running it, the courts will regard it as a sham, and the owners will be denied limited liability protection.
Second, even with a limited-liability company, an owner may be liable for more than his or her initial investment. When an owner has personally co-signed a loan agreement, this is the case (such as a credit card application). This signature provides the lenders with a personal guarantee of debt repayment, allowing them to pursue the owner’s personal assets in the event of failure. If final repayment is beyond the resources of the business, other owners (or investors) are not accountable, but the owner who co-signed would be responsible for that amount.
Is it possible for everyone to run a limited liability company?
No, in some occupations, the benefit of restricted liability is impossible to obtain. Law and ethics hinder professionals such as lawyers, doctors, accountants, chiropractors, engineers, and architects from minimizing their liabilities. We want these professionals to take personal responsibility for their decisions, so they make them thoughtfully every time.
The final line is that, if at all possible, anyone doing business should consider forming a limited liability company. Consider it a safety net in case the worst happens.
