California Professional Physician Assistant Corporation: 8 Benefits

Professional Physician Assistant Corporation California

May 11, 2023

Are you a California physician assistant or physician associate interested in forming a California professional physician assistant corporation? If so, there are many benefits to doing so. Consider the following:

1. Limited Liability Protection

California professional physician assistants corporations can help provide the physician assistant with liability protection in case of a lawsuit (except in cases of malpractice).

2. Tax Deductions

By forming a physician assistant corporation, physician assistants can take advantage of certain tax benefits like the ability to more easily deduct business expenses.

3. Tax Savings    

Taxing your physician assistant corporation as an S corporation, or small business corporation, allows the ability to reasonably reduce your payroll taxes.

 4. Pass-Through Taxation

Unlike C corporations, California physician assistant corporations taxed as S corporations avoid “double taxation.” Profits and losses are passed down to the physician assistant shareholder(s).

5. Retained Earnings

Since S corporations are not taxed at the corporate level, it can be easier for the physician assistant to retain earnings and reinvest them into their S corporation. This can be helpful for physician assistant corporations looking to build up their cash reserves.

6. Employee Benefits

It is simpler to offer employee benefits like retirement plans and health insurance through a California physician assistant corporation.

7. Continued Existence

Physician assistant corporations allow for perpetual existence. This means that the professional corporation has a “life of its own” and can maintain its existence even if the shareholders (owners) change.

8. Credibility

Operating as a corporation can provide credibility to a physician assistant.

LawInc Can Help You Form a CA Physician Assistant Corporation

If you are a licensed California physician assistant and would like help starting a professional physician assistant corporation, LawInc is here to help.

Form a California Professional Corporation Online

Visit LawInc on YouTube