Happy February Dental Professionals
Below are a few key mistakes most Dental Professionals make that cost them thousands each year.
Dentists working as Interdependent Contractors- Failing to form a S Corporation or Not using their S Corporation Correctly.
- If you have not formed a S Corporation you are possibly over paying taxes by several thousand each year.
- Use S Corporation structure to take advantage of lower self employment taxes, employee reimbursement of home office and miles driven, structuring a 401K to shelter your income from high taxes during your young years.
- Work with a Dental CPA that will advise you on how much salary your S Corporation should pay you from your contractor income
- Plan out your tax payments through out the year so you do not end up owing thousands in taxes when you file your taxes
Mistake # 2
Dentists Starting a new Dental Practice using a S Corporation Structure
- Using a S Corp Structure to purchase a new practice or building a new practice
- A S Corporation is not the best structure to purchase or build a practice. There are key deductions a new practice can take when it comes to equipment and build out. These deductions are limited under a S Corp based on how much basis you have in the business.
- A good team of advisers can be your greatest investment as they will save your more in taxes along with help increase your practice profitability, much more than you would pay in fees.
Virjee Consulting is a CPA firm that focuses on the Dental Industry. We work with dentists across the country at every point during their career. We have built our practice on the mission to help dentists save taxes, improve practice productivity and retire successfully.
Here’s to your best financial future ever!
Disclaimer- Advise in this blog should not be taken as tax advise. Each person’s tax circumstance is different and unique. Using these strategies without full knowledge of the current IRS rules and regulations regarding the specific items discussed can result in heavy fines, penalties and interest. Please discuss the guidance in this document with a tax expert before making any decisions.