Medical & Dental Practices
Practice owners save six figures on entity structure alone.
S-Corp elections, defined benefit plans, and equipment expensing for high-earning practitioners.
The patterns that cost you most.
Self-employment tax overload
Sole-prop or single-member LLC practices pay 15.3% SE tax on every dollar.
Underused retirement vehicles
Solo 401(k)s, cash balance plans, and defined benefit plans can shelter $200K+/yr — most practices use SEPs.
Equipment depreciation missed
Section 179 and bonus depreciation make new chairs, imaging, and lasers immediately deductible.
Strategies that map to your reality.
S-Corp election + reasonable comp study
We document a market-rate salary and convert the rest into distributions, eliminating SE tax on the distribution portion.
Cash balance + 401(k) stack
Layered defined benefit and defined contribution plans for owners 45+ — shelter $250K+ pretax annually.
Section 179 + bonus depreciation
Immediate expensing of qualifying equipment, leasehold improvements, and tech.
Restructured to S-Corp and saved $86K/yr in self-employment tax
Sole-prop status meant 100% of $720K profit was hit with self-employment tax.
FAQs.
When does S-Corp make sense for my practice?+
Generally above $80K-$100K of net practice income. We model the breakeven before recommending the conversion.
Can I have a cash balance plan with employees?+
Yes — design and contribution allocation must satisfy non-discrimination testing. We coordinate with your TPA.
Ready for an industry-specific strategy?
Book a strategy call. We'll review your last return and identify exposure before quoting any engagement.
Book a strategy call