Money Question about business startup/structure

shitgoose · 10-06-2015, 07:11 PM

My wife is a psychologist. Her and some colleagues are looking to start up their own private practice for seeing clients, etc. They plan to meet with a CPA in the coming months but her and I have already started discussing the best way to structure things.

I don't think they want to form a partnership or anything that would make it messy if one of them wanted to leave.

They would prefer to credential with insurance companies under one entity to simplify billing, etc. Overhead would be shared but at the end of the month each member takes home what they collect minus expenses. They would probably have 1 or 2 front office/billing/scheduling type people working for them.

My question is what would be the most beneficial business structure for ease of use and also tax incentives?

Would it be possible for each one of them to have their own LLC but still have the "practice" that they all credential and bill under?

TIA

eDave · 10-06-2015, 07:18 PM

Look into a DBA. I think the LLC will have to cover all partners in your case.

Off the top of my head

ChiefsCountry · 10-06-2015, 07:24 PM

CPA and lawyer talk IMO.

**TribalElder** · 10-06-2015, 07:33 PM

How does asking this question on CP make you feel as a person psychologically

**Bwana** · 10-06-2015, 07:36 PM

Quote:

Originally Posted by ChiefsCountry

CPA and lawyer talk IMO.

Without a doubt, I would look up both starting with the CPA.

jspchief · 10-06-2015, 07:42 PM

Individual llcs would have to work under a corp as contractors, with corp covering the shared overhead such as receptionist, building etc. A little complicated on startup, but may best for her needs.

**Buehler445** · 10-06-2015, 07:50 PM

Lawyer first.

Then CPA.

If it were me I'd set up an LLC taxes as an SCorp. That will shield retained earnings (which they'll need starting a business). They'll have to pay themselves a "reasonable wage" which I would anticipate would not be a problem. It should indemnify the owners if shit goes bad.

The operating agreement should set up buyout/buyin/dissolution/crap that happens. Be sure to include provisions for loans to/from companies. Nobody thinks about it, but most people end up doing it one way or the other. It should also set out who is responsible for various functions, bookkeeping practices, etc. It is also important to set out ahead of time what it will take to change anything, define strategy, mandatory meetings, and anything else specific to the practice.

I'd do employment contracts for each Dr. That will cover compensation and responsibilities. Mine is on a yearly basis in case I need to change anything.

Feel free to pm me if you have any specific stuff. I'm no lawyer or CPA but I work cheaper

.

**Rain Man** · 10-06-2015, 07:53 PM

My company is a subchapter S, which I think is best if you've got partners coming and going. It's got a few annoying tax implications. I think the other similar option is an LLC, which I suspect (not sure) is a little easier if you don't anticipate changes in ownership.

**Trivers** · 10-06-2015, 08:11 PM

Quote:

Originally Posted by Buehler445

Lawyer first.

Then CPA.

If it were me I'd set up an LLC taxes as an SCorp. That will shield retained earnings (which they'll need starting a business). They'll have to pay themselves a "reasonable wage" which I would anticipate would not be a problem. It should indemnify the owners if shit goes bad.

The operating agreement should set up buyout/buyin/dissolution/crap that happens. Be sure to include provisions for loans to/from companies. Nobody thinks about it, but most people end up doing it one way or the other. It should also set out who is responsible for various functions, bookkeeping practices, etc. It is also important to set out ahead of time what it will take to change anything, define strategy, mandatory meetings, and anything else specific to the practice.

I'd do employment contracts for each Dr. That will cover compensation and responsibilities. Mine is on a yearly basis in case I need to change anything.

Feel free to pm me if you have any specific stuff. I'm no lawyer or CPA but I work cheaper

.

Not bad.

And I thought you were a farmer??

**Buehler445** · 10-06-2015, 08:11 PM

Quote:

Originally Posted by Rain Man

My company is a subchapter S, which I think is best if you've got partners coming and going. It's got a few annoying tax implications. I think the other similar option is an LLC, which I suspect (not sure) is a little easier if you don't anticipate changes in ownership.

What annoying tax implications are you dealing with?

My company is a subchapter S because the SE tax was eating my soul.

**Buehler445** · 10-06-2015, 08:12 PM

Quote:

Originally Posted by Trivers

Not bad.

And I thought you were a farmer??

I am.

shitgoose · 10-06-2015, 08:57 PM

Quote:

Originally Posted by Buehler445

Lawyer first.

Then CPA.

If it were me I'd set up an LLC taxes as an SCorp. That will shield retained earnings (which they'll need starting a business). They'll have to pay themselves a "reasonable wage" which I would anticipate would not be a problem. It should indemnify the owners if shit goes bad.

The operating agreement should set up buyout/buyin/dissolution/crap that happens. Be sure to include provisions for loans to/from companies. Nobody thinks about it, but most people end up doing it one way or the other. It should also set out who is responsible for various functions, bookkeeping practices, etc. It is also important to set out ahead of time what it will take to change anything, define strategy, mandatory meetings, and anything else specific to the practice.

I'd do employment contracts for each Dr. That will cover compensation and responsibilities. Mine is on a yearly basis in case I need to change anything.

Feel free to pm me if you have any specific stuff. I'm no lawyer or CPA but I work cheaper

.

Very informative. I may shoot you a PM down the road as this thing progresses. Thank you

Hog's Gone Fishin · 10-07-2015, 06:18 AM

There won't be any Tax issues after Trump becomes pres. Everybody will have to pay $200 and that's it.

10-06-2015, 07:11 PM
shitgoose Veteran Join Date: Jul 2008 Location: Wichita Casino cash: $4202833	Question about business startup/structure My wife is a psychologist. Her and some colleagues are looking to start up their own private practice for seeing clients, etc. They plan to meet with a CPA in the coming months but her and I have already started discussing the best way to structure things. I don't think they want to form a partnership or anything that would make it messy if one of them wanted to leave. They would prefer to credential with insurance companies under one entity to simplify billing, etc. Overhead would be shared but at the end of the month each member takes home what they collect minus expenses. They would probably have 1 or 2 front office/billing/scheduling type people working for them. My question is what would be the most beneficial business structure for ease of use and also tax incentives? Would it be possible for each one of them to have their own LLC but still have the "practice" that they all credential and bill under? TIA
Posts: 1,640

10-06-2015, 07:18 PM	#2
eDave Banned Join Date: Jan 2013 Casino cash: $9998560	Look into a DBA. I think the LLC will have to cover all partners in your case. Off the top of my head
Posts: 53,803

10-06-2015, 07:24 PM	#3
ChiefsCountry The Insider Join Date: Jan 2004 Location: Lake of the Ozarks Casino cash: $2168752	CPA and lawyer talk IMO.
Posts: 49,693

10-06-2015, 07:33 PM	#4
TribalElder Arrowhead Trail of Tears Join Date: Oct 2012 Location: KansasCity Casino cash: $2290441	How does asking this question on CP make you feel as a person psychologically
Posts: 29,173

10-06-2015, 07:42 PM	#6
jspchief BAMF Join Date: Apr 2004 Location: Your Face Casino cash: $9998710	Individual llcs would have to work under a corp as contractors, with corp covering the shared overhead such as receptionist, building etc. A little complicated on startup, but may best for her needs. __________________ Courage is not the absence of fear but rather the judgment that something is more important than fear. The brave may not live forever but the cautious do not live at all.
Posts: 27,207

10-06-2015, 07:50 PM	#7
Buehler445 Supporter Join Date: Apr 2007 Location: Scott City KS Casino cash: $2164734	Lawyer first. Then CPA. If it were me I'd set up an LLC taxes as an SCorp. That will shield retained earnings (which they'll need starting a business). They'll have to pay themselves a "reasonable wage" which I would anticipate would not be a problem. It should indemnify the owners if shit goes bad. The operating agreement should set up buyout/buyin/dissolution/crap that happens. Be sure to include provisions for loans to/from companies. Nobody thinks about it, but most people end up doing it one way or the other. It should also set out who is responsible for various functions, bookkeeping practices, etc. It is also important to set out ahead of time what it will take to change anything, define strategy, mandatory meetings, and anything else specific to the practice. I'd do employment contracts for each Dr. That will cover compensation and responsibilities. Mine is on a yearly basis in case I need to change anything. Feel free to pm me if you have any specific stuff. I'm no lawyer or CPA but I work cheaper.
Posts: 56,864

10-06-2015, 07:53 PM	#8
Rain Man NFL's #1 Ermines Fan Join Date: Jul 2001 Location: My house Casino cash: $3168491 VARSITY	My company is a subchapter S, which I think is best if you've got partners coming and going. It's got a few annoying tax implications. I think the other similar option is an LLC, which I suspect (not sure) is a little easier if you don't anticipate changes in ownership. __________________ I'm putting random letters here as a celebration of free speech: xigrakgrah misorojeq rkemeseit.
Posts: 141,577

10-07-2015, 06:18 AM	#13
Hog's Gone Fishin Fish are scared of me Join Date: Nov 2001 Casino cash: $1560477	There won't be any Tax issues after Trump becomes pres. Everybody will have to pay $200 and that's it.
Posts: 40,374