Dr. Smith, Dr. Stone, and Dr. Fitch are all pediatricians. They want to set up a practice together. Personal income-tax rates are lower than corporate income-tax rates. They are also concerned about liability for medical malpractice claims and want protection. They live in the state of Nita, which allows sole proprietorships, partnerships, corporations, professional corporations (PCs), and limited liability partnerships. The doctors come to your law firm and ask for guidance in determining which type of business entity is best suited for their needs. Your supervising attorney assigns you the task of drafting a memo analyzing each type of business organization that is available to the doctors in the state of Nita and asks you to recommend one for the doctors.

Write a memo analyzing each type of business entity, and select the one that is most appropriate for the doctors.