Tax efficiency in Solo medical practice?

What would be the most tax efficient way to register a solo medical practice? As sole propreitor or LLC or other?

Before you decide, check out the P.A., Professional Association. In certain states, it is exempt from Franchise Tax. The LLC can avoid double taxation of dividends, but you would most likely be able to avoid that by paying yourself rent on the building you own personally, reimbursing all business travel on your own personal automobile, etc.



  • Register as either an LLC or as a Profesional Corporation. The key is you want to limit your liability. A sole proprietor has the least protection. An LLC (you gives you good protection, while having no real tax impact). A Professional Corporation (aka an S Corporation) is the next best option. However, in this structure the Corporation will have a filing requirement. The income from the Corporation will be passed on to you and entered on your 1040. Check with your state Department of Revenue for specific tax issues.References :

  • Before you decide, check out the P.A., Professional Association. In certain states, it is exempt from Franchise Tax. The LLC can avoid double taxation of dividends, but you would most likely be able to avoid that by paying yourself rent on the building you own personally, reimbursing all business travel on your own personal automobile, etc.References :

  • LLC. The taxes are paid as if a sole proprietor and will have the protection of a c corporation.References : CPA


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>