Owner compensation
S corporation owners must pay themselves a reasonable salary before taking distributions, and the mix drives payroll tax.
How we helpWe set a defensible salary, run owner payroll and plan distributions through the year.
Care and personal services · Tax · Books · Insurance
Tax, books and insurance for medical and dental practices
You care for patients. We handle entity planning, owner pay, equipment and retirement strategy so your practice keeps more of what it earns.
Physicians, dentists, chiropractors and therapists work with our office for practice accounting, S corporation planning, payroll, equipment purchases and business coverage.
Reviewed by Orkun Ozkaymak, CPA, MBA·Clients in all 50 states and abroad
Medical and dental practices
High income, high stakes
Practices earn well and spend heavily on staff, equipment and space, while owners face high tax brackets and complex decisions about entity type, retirement plans and buying or selling a practice.
Our office handles the books and returns, plans owner compensation and retirement contributions, and our agency covers your office, your staff and your family.
Special needs
What makes a practice different, and how we help
Where practice owners gain the most.
Service business limits
Health practices are specified service businesses, so the qualified business income deduction phases out at higher incomes.
How we helpWe model the deduction each year and plan retirement contributions and timing around it.
Expensive equipment
Imaging, chairs and technology cost a lot and can be deducted over time or up front.
How we helpWe plan each purchase with you and pick the depreciation method that fits the practice's next few years.
Buying or selling a practice
Goodwill, patient records and equipment are taxed differently in a sale.
How we helpWe review the deal structure, allocate the purchase price and plan the tax before you sign.
One coordinated office
Services for medical and dental practices
Tax, accounting and insurance under one roof, so the numbers on your return, your books and your policies all agree.
Tax and accounting
QuickBooks bookkeepingQuickBooks with collections, payroll and provider reporting.Learn more Payroll taxStaff and owner payroll.Learn more Business income taxS corporation, partnership and professional corporation returns.Learn more Financial planningRetirement plan design and personal financial planning.Learn more Business advisoryPractice purchase, sale and expansion planning.Learn more
Insurance
Commercial insuranceBusiness owners policy for your office and equipment.Learn more Workers compensationWorkers compensation for clinical and front office staff.Learn more Life insuranceLife insurance for owners and buy-sell funding.Learn more Health insuranceHealth coverage for owners and employees.Learn more
Calendar
Filings we keep on schedule
The recurring deadlines medical and dental practices face most often. We track them for you and send reminders before anything is due.
- March 15S corporation and partnership returnsForm 1120-S or Form 1065.
- QuarterlyForm 941 and state payrollStaff and owner payroll.
- Apr 15Jun 15Sep 15Jan 15Estimated tax paymentsFor owners with distributions.
- July 31Form 5500Annual retirement plan return, when your plan requires one.
Dates shown are for calendar-year filers. When a due date falls on a weekend or holiday, it moves to the next business day.
QuickBooks Online
Books built for medical and dental practices
Your QuickBooks shows collections, overhead and profit per provider, so decisions about staffing and space are based on real numbers.
Our office sets up QuickBooks Online with a chart of accounts designed for your industry and your entity type, mapped line by line to your tax return. Your books are ready for filing season all year.
Chart of accounts
- 41000Patient collectionsIncome
- 41200Insurance collectionsIncome
- 51000Clinical suppliesCOGS
- 53000Clinical staff wagesLabor
- 60500Officer compensationS corp
- 15500Medical equipmentFixed asset
Mapped to your tax return lines
Questions
What medical and dental practices ask us
Should my practice be an S corporation?
Often, once profit is steady. It can lower self-employment tax, but it requires a reasonable owner salary and a separate return. We run the comparison.
Can I deduct 100% of new equipment this year?
Many practices can, through Section 179 or bonus depreciation. The right choice depends on your income this year and the next few. We plan it with you.
What retirement plan fits a small practice?
Common choices include a 401(k) with profit sharing and, for high earners, a cash balance plan. We compare contribution limits and costs.
Related industries
All industriesConsultants and professional servicesYour expertise is the product. We choose the right entity, set a smart owner salary and protect you from the claims that come with advice.Explore Law firms and attorneysClient trust money is not your money. We keep IOLTA accounts reconciled, partner draws clear and your practice ready for any review.Explore Daycare and childcare centersStaffing ratios, state subsidies and food program reimbursements. We keep payroll, books and coverage as dependable as your classrooms.Explore
Next step
Let's talk about your business
Request an insurance quote, or start your company with our office. Prefer to talk first? Book a time, virtual or in person.