This article from MedicalEconomics.com is geared towards medical professionals specifically and provides great general background information for setting up a business. That said, many of the principles covered can also apply to any professional business. Selecting the correct entity type is a very important point of consideration for anyone starting a medical practice or business. There are different types of entities each have different parameters and structures that should be considered in order to benefit by receiving the maximum amount of tax savings, deferred compensation plans, and profit sharing options.
Entity selection and similar decisions made at formation will be very important for the future of the business and should be deeply thought about before starting any new business because they are hard to change after operations have started. The entity type will also be a huge factor of consideration for succession planning as well as bringing in new partners/shareholders.
Donofrio Tax & Accounting Inc has the experience you need to properly evaluate and navigate the complexities surrounding entity formation. We have helped set up many medical practices and other small to mid sized businesses get started over the years. We are available for consultation for you! Contact us by filling out our easy to use contact form or by calling (732) 936-9494