You Are A Target.
Be Invisible.
Physicians are high-value targets for frivolous lawsuits. We build legal fortresses around your assets so that even if you lose a lawsuit, you don't lose your wealth.
A guide by Taxstra Tax & Accounting — CPA-led tax strategy for business owners
Malpractice Is the Least of Your Worries
The real liability threats physicians face
Everyone worries about medical malpractice, but your policy covers that. The REAL danger comes from "excess verdicts" (above policy limits) and non-medical liability: car accidents, slip-and-falls on your rental property, or employee lawsuits.
If you own assets in your own name, they are low-hanging fruit for a creditor. A plaintiff's attorney looks for "deep pockets." If you look like an easy target, you get sued. If you look like a stone fortress, they settle.
Vulnerability Checklist
How exposed are you right now?
- Owning rental properties in your personal name (Huge Risk)
- Having less than $2M in Umbrella Insurance coverage
- Keeping large amounts of cash in a bank account exposed to garnishment
- Co-signing loans for children (or letting them drive cars titled in your name)
- Holding all assets in a Revocable Living Trust (which offers ZERO asset protection)
Strategies to Bulletproof Your Wealth
We use legal structures to make you unattractive to litigators
Umbrella Insurance
The first line of defense. It's cheap (~$500/yr for $1M). We recommend coverage equal to your Net Worth. It kicks in when your auto/home limits are exhausted.
The LLC Wrapper
Never own rentals personally. Each property (or small group) should be in an LLC. This contains liability. If a tenant sues, they can't touch your personal home or brokerage.
Tenancy by the Entirety
In some states (like FL, PA), assets titled this way are protected from the separated creditors of one spouse. If only one of you is sued, the joint asset is safe.
ERISA Protections
401(k)s have federal protection from creditors. IRAs generally have state-level protection (which varies). We lean heavily into ERISA-protected accounts for high-risk specialties.
DAPT (Trusts)
Domestic Asset Protection Trusts. Advanced structures in specific states (NV, DE, SD) that allow you to be a beneficiary of your own trust while shielding it from lawsuits.
Equity Stripping
We direct lenders to place liens on your safe assets. To a creditor, the asset looks like it has no equity to seize, even if the debt is friendly.
Inside vs Outside Liability — Deep Dive
Understanding the two ways you can be attacked
Inside Liability: Someone gets hurt ON your property. The LLC stops the lawsuit from escaping and taking your personal home.
Outside Liability: YOU hit someone with your car. The victim sues YOU. Can they take your LLC? In strong states (WY, NV), the answer is NO — they can only get a "Charging Order" (which gives them nothing but a tax bill).
The "Series LLC" Firewall
*Not all states recognize Series LLCs. We help you choose the right jurisdiction.
Protection FAQ
Protect the Bag.
Talk to a Taxstra CPA about your income level and get a custom tax optimization plan.
Find Out What You're Overpaying in Taxes
Book a free 30-minute call to walk through your situation. We'll tell you exactly how our CPA-led team can help — and whether we're the right fit.