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Setting up a medical practice can be time-consuming. No matter how accomplished as a doctor you may be, you may still encounter obstacles when you try to open your own medical practice, which requires both business and legal skills. While you may have business skills, you may have to leave the legal part of the setup process to a reliable la healthcare attorney.
Understanding California Medical Corporation
This type of corporation offers many benefits to California licensed physicians who are looking to increase their liability protection and save on taxes. When you form a medical corporation, it becomes a separate legal entity. Every time to you conduct business or see patients, you act on behalf of your corporation. A professional medical corporation should be owned by at least one doctor. Non-physicians can also have ownership interests in the corporation; however, the physician should have a majority ownership stake in the corporation.
Why Hire a Healthcare Attorney When Setting Up a Medical Practice?
Some steps in opening your practice should be handled by a lawyer. Your attorney can help review contracts before you agree to them. Contracts like leases and sub-contracting arrangements are usual agreements that a medical practice must enter into at the formation of the practice. Moreover, your attorney can set up the proper business entity for your medical practice. Incorporating your practice helps you avoid liability for any losses sustained by the business. Also, it can let you enjoy tax benefits. Medical corporations in California are taxed as C corporations by default, which are subject to double taxation. But, medical corporations can choose to be taxed as S corporations, which are pass-through entities. Thus, there is no corporate-level income tax owed. The owner of the corporation only pays the income tax.
Other benefits of a medical corporation include fringe benefits. Your medical corporation will be eligible for retirement plans and 401 (k) plans that allow for higher contribution limits than what’s available to doctors who practice as sole proprietorships or in partnerships. Your lawyer will help you understand how setting up a medical corporation can benefit you.
Additionally, your attorney can help your practice understand and come into compliance with applicable state and federal regulations. Usually, such regulations are updated and your practice must follow them to avoid fines and additional review by regulators. Finally, your lawyer can decide if you have to trademark your office name and ensure the intellectual property associated with your medical practice is protected.
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