Abstract
This Comment argues that every state should allow professionals to take advantage of LLC statutes, as Washington has done. Such action will provide protection for accountants and lawyers from the wave of litigation that has surfaced in recent times and to restore an element of confidence to these professions. This Comment further asserts that allowing professionals to use LLC statutes is not only consistent with the duties peculiar to the accounting and legal professions, but also a necessary step when viewed in light of the policies of fairness, efficiency, and public protection. Initially, Part II of this Comment describes the litigation crisis in this country and the sources of and reasons for the crisis. Part III discusses the current and potential future effects of the crisis if it is not addressed by lawmakers. Part IV introduces the LLC as a remedy for the effects of excessive litigation, describes the Washington LLC Act as it applies to professionals, shows how various statutes have addressed the issue of LLC use by professionals, and demonstrates how the LLC fits within the ethical codes of the legal and accounting profession. Part V of this Comment then illustrates how the LLC will help to remedy the litigation crisis, while Part VI shows why the LLC is a proper entity for professionals, and asserts that the Washington LLC act provides an ideal compromise between the interests of professionals and consumers. Finally, Part VII concludes that the LLC can provide professionals with much needed relief from the perils of excessive litigation, but that in order to do so, every state must follow Washington's lead and pass or amend legislation to permit professionals to utilize LLCs.
Recommended Citation
Bryan Smith, The Professional Liability Crisis and the Need for Professional Limited Liability Companies: Washington's Model Approach, 18 SEATTLE U. L. REV. 557 (1995).
