McStartup

Naomi wrote:

I am starting a medical practice where I will be the sole owner and I will have several employees including other physicians. I am wondering if it would be better to be a c Corp with the intention of choosing s Corp status to avoid the double taxation on dividends or just do a LLC. Would the LLC mean a higher level of taxation?

For your situation, I would recommend finding good legal and accounting professionals to help you make this decision.  You will likely be wanting to have these local folks on hand anyway, as you focus on being a doctor.  There may very well be advantages one way or the other that apply specifically to medical professionals, so I'd ask some other doctors in your area for recommendations.

Both an S-Corp and an LLC should avoid double taxation, and for tax purposes are nearly identical. Generally I push people toward LLC's because they tend to be very easy to setup and maintain, but in your case again it's worth checking with someone who specializes in medical practices.  There could very well be tax advantages to a C-corp as well, so it's worth exploring all your options.

If you do get a solid answer, please come back to the site and let me know.  I'd love to have a good answer I can share with other medical professionals.

Jeff