One of the distinct advantages of filing an LLC (limited liability company) with the Secretary of State of Alabama is the limitation on personal liability for the entity's debts and obligations. An LLC blends the advantages of both partnerships and corporations - offering the protections that are afforded by corporations, with the simplicity of a partnership.
For business owners who are seeking the ultimate in personal asset protection, a corporation offers significant insulation from personal liability. Of the various types of businesses, a corporation is designed to limit the worry that comes with managing an operation that may potentially accrue debt. When structured properly, a corporation provides owners, directors, and officers with true peace of mind, by protecting personal assets like homes, cars, and personal savings.
A common reason why business owners form non-profit corporations is to ensure adequate protection for their personal assets and to create a separation from their business liabilities. A properly formed and registered corporation allows owners, directors, & officers to manage and run the business without worrying that company debts will affect their personal finances.
If a corporation intends to engage in the commonly accepted definition of "professional services," then a "Professional Corporation" must be formed pursuant to certain statutory rules. Professional services, according to most states, usually cover businesses that offer medical, legal, accounting and financial services, among others.