California osteopathic medical corporations provide many benefits to California osteopathic physicians in private practice.
by LawInc Staff
January 11, 2023
Are you a California D.O. (Doctor of Osteopathic Medicine) interested in forming a California professional osteopathic medical corporation? If so, there are many advantages to doing so. Consider the following benefits:
1. Limited Liability Protection |
California osteopathic medical corporations can help provide the osteopathic physician owners with additional personal asset protection in case of a lawsuit (except in cases of malpractice). |
2. Tax Deductions |
Incorporating allows for the opportunity to more aggressively write off business expenses. |
3. Tax Savings |
Doctors of osteopathic medicine who elect to incorporate have the opportunity to minimize payroll taxes. Depending on income, this can result in thousands of dollars of tax savings annually. |
4. Pass-Through Taxation |
Unlike C corporations, California professional osteopathic medical corporations taxed as S corporations can avoid “double taxation.” Profits and losses are passed down to the owner(s). |
5. Retained Earnings |
Since S corporations are not taxed at the corporate level, it can be easier for them to retain earnings and reinvest them into the S corporation. This can be helpful for osteopaths that want to build up their cash reserves. |
6. Employee Benefits |
It is easier to offer employee benefits like health insurance and retirement plans through corporations. |
7. Perpetual Existence |
Osteopathic professional medical corporations allow for perpetual existence. This means that the corporation can exist independently of the original D.O. founder. This allows for easier sale of a osteopathic medicine practice. |
8. Credibility |
Operating as a corporation can provide credibility to the doctor of osteopathy owner. |
LawInc Can Help You Start Your CA Osteopathic Medical Corporation
If you are a licensed California osteopathic doctor looking to incorporate, LawInc is here to help.
Visit LawInc on YouTube
