Solo law practice

Given the very high cost of liability insurance for certain types of law practices, is a single member llc a reasonably good means of protecting personal assets?

Answer

If you are worried about malpractice as a solo attorney, it's unlikely an LLC alone will protect you, as you would be personally liable for your OWN professional negligence.

That said, if there are multiple attorneys in your practice, then you absolutely want to form an entity other than a general partnership. In a general partnership, you would be personally liable for your partner's malpractice, in addition to your own.

That's a terrible situation to put yourself in.

Therefore, also every law firm these days is either limited partnership, limited liability partnership, professional corporation (basically a corporation), or LLC.

Nonetheless, an LLC will protect you from other, non-malpractice liability such as contractual disputes arising from your business and possible tort liability for things like a slip-and-fall at your office.

Purchasing malpractice aka professional liability insurance is probably a very good idea.

I do know of some professionals that practice "naked" (without malpractice insurance) where they are married, in joint tenancy by the entireties states, with all their assets in joint name with their spouse. There are many potential cons to this arrangement, but people still do it to save on insurance premiums.