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+--- Thread: Diff b/w Professional & Non-Professional AOPs (/showthread.php?tid=3692)
Diff b/w Professional & Non-Professional AOPs - Asifkhan - 08-11-2006
Could any1 pls discribe the difference between Professional and Non-professional AOPs. Is professional AOP the one which is prohibited from Incorporation or not?
Regards,
- Abdur.Rehman - 08-12-2006
yes professional AOP is one prohibited from incorporation
- Asifkhan - 08-12-2006
Thanks Abdur Rehman, however, why is it that they are prohabited from incorporation? Is there any specific reason(s) given any where?
- Abdur.Rehman - 08-12-2006
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.
- Asifkhan - 08-15-2006
Thanks for your explanation. Cheers