Establish your Entity
Forming your entity is one of the first steps you will need to take when starting your practice. It is a very important step and we advise all of our clients to do some research before making any decisions. The type of entity you decide to form will largely depend on the current and future goals of your organization.
Below are the three most commonly used entity structures, please click on these links to learn more about each of them.
Below are the three most commonly used entity structures, please click on these links to learn more about each of them.
Limited Liability Company Overview
The limited liability company (LLC) is the most popular entity structure among our independent medical practitioners. It not only offers limited liability protection and pass-through taxation, but the LLC itself legally exists as a separate entity from its owners. Therefore, the owners cannot typically be held personally responsible for the debts and liabilities of the LLC.
The LLC also allows for pass-through taxation as its income is not taxed at the entity level. However, a tax return for the LLC must be completed. Any income or loss of the LLC is passed through to the owner(s). The owners, also called members, must then report the income or loss on their personal tax returns.
Advantages of an LLC:
-LLCs can be set up very quickly.
-LLCs allow for pass-through taxation.
-LLC members are not typically held personally responsible for the debts and liabilities of the business.
-LLCs generally have no ownership restrictions.
-LLC members have flexibility in structuring the management of the company.
-Potential customers may perceive an LLC as a more professional entity than a sole proprietorship or partnership.
-LLCs allow for pass-through taxation.
-LLC members are not typically held personally responsible for the debts and liabilities of the business.
-LLCs generally have no ownership restrictions.
-LLC members have flexibility in structuring the management of the company.
-Potential customers may perceive an LLC as a more professional entity than a sole proprietorship or partnership.
