1099 contractor lawsuit- my liability as a sole proprietor vs. PC?

[mlb491]

Hello community,

This is a hypothetical question- If I hire an independent contractor with his/her own professional liability insurance, and that doctor is sued for medical malpractice, would I be liable (My business would be sole proprietorship, as I do not have employees)?

I ask this question as I am considering whether or not I should form a PC with S-corp taxation status in California for asset protection.  In the near future, I can foresee paying a 1099 contractor for certain days that I will not be at my practice.

Thank you for your thoughts!

[Peds]

it likely is a good idea if you will have employees.

[jfoxcpacfp]

If the other person truly is an "independent" contractor, you should technically not have any liability for his/her acts. As @Peds stated, liability would be attached to an employee who is working under your direction. I think the first question you need to resolve is whether this person actually would be independent or would be an employee.