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When Should a Physician Incorporate and What are the Benefits of Incorporating or Not?

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Incorporating a medical business refers to creating a corporation that operates separately from the owner. The owning physician will retain control of the company while benefiting from the desirable tax advantages that a corporation offers.

If you think, incorporating might be right for you and your medical practice, please reach out to our lawyers immediately. We can identify how best to restructure your business to give you greater efficiency and minimize your tax burden. Contact us today to get started!

What Does it Mean to Incorporate a Medical Practice?

When physicians incorporate their medical practice, they retain legal ownership of the company as they are simultaneously the director and a shareholder in the corporation. The doctor may assign other shareholders and create a shareholder agreement that outlines the benefits and duties involved in owning the company.

There are several ways to structure the corporation, including creating a professional corporation, a holding company, and a discretionary family trust (DTF). Each structure has advantages in certain circumstances, so you should work closely with a trusted legal representative to decide which is best for you.

What Benefits Are There to Incorporating a Business?

Starting your own business can be intimidating, but setting up a corporation is one step that will greatly reduce your risks in your future company. Incorporating your medical practice can give you legitimacy and help you build a better reputation in your community. It also protects you financially as you divide your business finances from your individual accounts.

Another key advantage to incorporating your medical business is the tax advantage of having your income flow into your corporation rather than your personal accounts. You may defer paying taxes on the earnings that are not needed right away and pay a lower rate than you would normally pay as an individual.

Should You Hire Our Medical Business Lawyers?

Hiring a lawyer is a great first step when considering incorporating your business. This huge decision requires analyzing your company’s current circumstances and deciding which structure will work best for you. Our lawyers understand that these decisions are stressful and overwhelming for doctors whose experiences are in the medical field rather than in legal matters.

We will help you find the answers you are looking for as we create the best structure for your medical company. We have the resources, tools, and knowledge to guide you through the process of incorporating your business. Please rely on your honesty and experience to give your medical company the bright future you deserve. Call us today at (438) 805-5515.

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