Making Your Practice Both an LLC and a Corporation
Camala Bailey, CPA, CVA, at Camala C. Bailey, CPA, PC, explains how your practice can be considered both an LLC and a corporation.
Camala Bailey, CPA, CVA, at Camala C. Bailey, CPA, PC, explains how your practice can be considered both an LLC and a corporation.
Interview Transcript (slightly modified for readability)
"An LLC is a limited liability company, and for tax purposes, that can be treated as a sole proprietorship, which is a schedule C on your personal income tax return. Or, if it’s a partnership, it has its own separate tax return which is a partnership tax return or a Form 1065.
What the IRS allows you to do is elect if you’re an LLC to be treated as a corporation. The corporation of choice for veterinarians, in my opinion, is an S corporation. Basically, for legal purposes, you’re still an LLC. But for tax purposes, with just one little form to the IRS requesting the change you become an S corporation, which is a great tax-saving tool over the life of your practice, not only in payroll taxes but when you go to sell your practice. It’s a huge difference for you."
