Which is the best LLC tax classification for physician practice?

Hi

We would highly recommend reviewing projected income for next 3 years with your CPA. Based on this information your CPA can help you select the best tax classification.

The 2 preferred are as follows : Single member LLC. You will be taxed as a sole propreitor. All income/losses will flow through the LLC. You will pay taxes on the net business income or loss. Its easy to setup and convenient if you are only consulting part time or just in your first year as a consultant physician.

The second choice is LLC with S tax election by filing form 2553. This is preferred by physicians, dentists, specialists, consultants in medical industry. As per this selection, you will be the owner employee. Your company will pay you salary. There is also no double taxation as C Corporation.

 

 We recommend consulting a CPA as these are just general guidelines.


Posted In: Company Formation

Go Back