As some of you know, my beloved cat, Meowth (yes, named after the Pokemon character) has been battling squamous cell carcinoma.  Today, he went on to the everlasting life beyond this Earth.  This post is dedicated to his memory.  Here he is, meowing with me and my daughter a bit over a week ago.

One of the things that we have been blessed with over the years–in Massachusetts and here in Knoxville–is great veterinary medical care.  Since The University of Tennessee's College of Veterinary Medicine (CoVM) is located on the West (agricultural) campus in Knoxville, it is a stone's throw from the College of Law, where I teach.  We have been assisted in various ways, including with Meowth, by veterinarians and veterinary technicians from the CoVM.   The CoVM also boast a veterinary social work program, and we were helped in Meowth's end-of-life care by one of the veterinary social workers in the CoVM program.  Many of the local veterinarians were trained at our CoVM.  We have worked with several private practice groups in Knoxville.

All this interaction with veterinarians has made me wonder how private veterinary medical practice groups are organized, from a legal entity point of view.  (Yeah, I know.  I am a true law nerd.  I admit that.)  My impression (although many practice groups are not very transparent about their form of legal organization) is that many of these practice groups are professional corporations (PCs) or professional limited liability companies (PLLCs).  I suppose this makes sense to me.  

But it reminds me of a question commonly asked by astute Business Associations students: "Why do professionals form professional business entities, given that the owners of limited liability entities already enjoy protection from liability for the obligations of the entity?"  I am sure many of you have been asked this same question.  If not, you soon may be.

So, how does one respond to this query?

I tell students that it is important to read the statutes in the relevant jurisdiction thoroughly.  That reinforces what I am saying in the classroom generally.  In some states, business owners engaged in a single professional practice are required to organize as a professional form of entity.  Personal liability shields may differ in some jurisdictions, and federal and state tax rules may treat professional entities differently (although these differential effects were much more likely under federal income tax rules in effect prior to 1986).

I found this inc.com encyclopedia entry.  Does it seem to cover the right comparative issues?  I am always looking for trusted on-line resources to which I can point students, and this one seems decent. I especially like the observation that "[t]he lines between different forms of business organization have been blurred in recent years, however, as more tax advantages have become available to sole proprietors and partnerships, and more limited liability has been granted to professional corporations."  Indeed!  Another helpful-looking on-line resource can be found here. 

Please offer other advice and resources in the comments on organizing veterinary medical practices, from a legal point of view.