Nov 16, 2021
Tax Tips #1: Small Anesthesia Practices & Sole Practitioners
Filing as an S Corporation, forming a C Corporation, and defining "Reasonable Wage" - 3 tax concepts that every small anesthesia partnership & sole practitioner needs to be aware of.
A huge welcome to our expert guest speaker: Glenn Henderson, CPA/ABV, CVA, AEP, and partner at CCK Strategies, PLLC.
An LLC that Files As An S Corporation
One of the most important things that sole practitioners or small partnerships of anesthesiologists can do is actually become an LLC that files for federal income tax as an S corporation. If they didn't do anything else, that helps to split their income into earned income as well as a return on equity. Put in tax terms, we can avoid payroll taxes on the return on equity while we still pay them what's considered to be a reasonable wage.
What we avoid, then, is actually more than just the payroll tax. If your wages are over 250,000, you’re required to pay what we call ObamaCare taxes, which are an add-on to your income tax. However, S corporation inco…