S-corp

[hokie]

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For those of you who are owners in your practice... how is your business structured? (C-corp, S-corp, etc.) With the changes that are likely to come with regards to FICA (i.e. no cap or the "donut") has anyone considered converting to an S-corp? Any disadvantages to the S-corp that you have run into?

 

[militarymd]

There are many different ways of avoiding higher taxes..

Defined benefits plan
medical savings plan
etc.

One of the issues with changing corporation types(for us).....has something to do with getting new provider numbers....this came up for us a few years ago....

where during the switchover...collections will go to nil.....and accounts receiveable's go way up.....

I don't know if it is true now, but that could be a reason not to swtich corporation type if cash flow is an issue.