08-12-2006, 11:03 PM
Well the core issue is that they are prohibited from incorporating as a limited liability company (LLC). and the main reason is that professionals are liable for their own acts and their acts cannot be the acts of company. For example if a doctors wrongly diagnosis the patient and puts the liability on his company or a CA gives a clean report instead of a qualified report when their are material misstatements, he cannot put the liability on the firm or on the other partner.
So, these associations are prohibited to form a separate legal entity basically.
So, these associations are prohibited to form a separate legal entity basically.
