Going Solo: Sole Proprietorship or Professional Corporation?

If you are starting out solo, your two principal options are to operate your law practice as a sole proprietorship or as a professional corporation. A sole proprietorship does not create a separate legal entity and is the simplest structure for tax purposes, but does not provide the sole proprietor with any shield from liability. A professional corporation creates a separate legal entity, is treated differently than a sole proprietorship for tax purposes, and provides greater protection from liability. I ultimately chose to open my law office as a sole proprietorship but may opt to become a professional corporation if/when I hire an employee.