Selecting the Best Entity for Your Practice

Selecting the Best Entity for Your Practice   By Andrew Schwartz, CPA   Making daily decisions is part of being an audiologist in practice. Some practice management issues have only one solution, but most require research on a variety of options. Selecting the best type of entity for your practice is one of those issues that has multiple possibilities. Now is the time to determine which type of entity works best if you are in the process of opening or purchasing a practice; you can also take this opportunity to revisit your entity selection if you already own a practice.   Most Popular Entity Selection Most audiology practices operate as a sole proprietorship, a limited liability company (LLC), or an S-Corporation (S-Corp). Different rules apply to each entity. Why bother to create an entity for your practice? Why not just go with a sole proprietorship or a general partnership? Setting up an entity is a must if you are a partner in your practice. Asset protection laws vary by state, but running your practice as an S-Corp or LLC should protect your personal assets from your business partner’s mistakes. Running the practice as a general partnership without forming an entity offers no protection from that risk. Setting up an entity for single-owner practices helps keep the practice separate from your personal finances, and some people may own the property and establish two entities — one to hold the practice’s assets and a second to hold the real estate.   ...
Source: R&D Blog - Category: ENT & OMF Tags: Blog Posts Source Type: blogs