As a Doctor, most of your patients place their care and life in your hands. Unfortunately in med-school they don’t teach you much of anything about running your own practice, nevermind the taxes the government will take. At Interactive Accountants, we pride ourselves on helping our Doctor clients take advantage of every tax reduction allowed by law. Here are a few of our top suggestions:
While not every medical practice may be a candidate for an S-Corp election, this tax election can be made for corporations, PA’s, LLC’s and PLLC’s and is an excellent way to mitigate some FICA taxes, which are 15.3%. While the IRS does look at reasonable compensation practices and a portion of your earnings will be subject to FICA, the S-Corp election still allows Doctor’s to earn a portion of their practices income and not pay FICA taxes on that.
Next is implementing a retirement plan. Whether it be a 401k, a Simple IRA, SEP IRA or defined benefit plan, something is always better than nothing. You must note that retirement plans come with rules that must be abided by. Some also carry additional costs for administration, so be sure to contact your trusted team here at Interactive Accountants and your financial advisor to help you develop the right retirement plan for your medical practice
Another fun planning measure we advise is to have an annual meeting with your leadership team someplace fun. There are no set requirements where you can hold your annual leadership team meeting. So consider hosting yours offsite, perhaps at your favorite vacation spot! Do not forget to maintain detail records of the event and work with your trusted team at Interactive Accountants for additional guidance to help audit-proof your annual meeting
And another is ….well you’re just going to have to contact us if you want to learn more! We have plenty more ideas for our Doctor clients to take advantage of tax deductions that save you money! Here you can learn more about our Healthcare Accounting solutions.
If you are a Doctor, you need a CPA firm that truly understands what you’re working with, and that firm is Interactive Accountants. So give us a call or schedule a free consultation with our owner Matthew Shiebler, CPA. He’s been practicing accounting for over 25 years now and is a business owner, just like you!