Top Reasons Why a Limited Liability Corporation Makes Sense for ...

Doctors who are interested in learning how niche medical practices can help them make their business operations more efficient will be interested in discovering the sensibility of a limited liability corporation (LLC). Even physicians who are much better versed in healthcare than they are in the legal aspects of running a business often appreciate the value of operating an LLC, particularly when they have chosen to run a cash pay medical practice. Once you have successfully built your cash pay medical practice, your attention will undoubtedly turn to how to effectively protect your business. Among the many benefits of filing your cash pay medical practice as a limited liability corporation are:

? Less paperwork than a traditional corporation. In the spirit of reducing overall paperwork, many firms that specialize in marketing for physicians will suggest forming a limited liability corporation. Forming a corporation usually means that physicians will need to keep substantial records and maintain meticulous paper records; this administrative headache is largely avoided by filing to have your cash pay medical practice designated as a limited liability corporation. ? Ability to form an LLC with a single owner. Physicians who have chosen to use healthcare marketing tools to establish a cash only practice often run a single-physician office. Many states allow the formation of LLC?s with a single owner, which means that the process is streamlined even further. No hassles with Boards of Directors; and the ability to make decisions yourself-?this is an important benefit of forming an LLC. ? Default tax classification. Utilizing default tax classification, physicians are often able to save money on taxes. Tax liability is assessed at the member level, rather than at the overall LLC level. Some states, however, will levy a -?franchise tax-? from limited liability corporations as compensation for the privilege of limited liability. Having an LLC also means that it combines the limited liability features of a corporation and the flow-through tax treatment of income and losses of a partnership. ? Limited liability. Medical marketing firms will often tout the benefits of limited legal and fiscal liability that comes with a limited liability corporation. Members-?in this case the physician/owner-?are protected from some of the acts and debts of the corporation. Firms that provide healthcare marketing resources can give interested physicians the particulars about legal liability. Unlike a general partnership, owners of an LLC have limited liability and, unlike limited partners in a limited partnership, they do not lose their limited liability if they actively participate in management. ? Free from the rules of an S corporation. While its flow-through tax advantages are generally slightly superior to those of an S corporation, an LLC is not subject to the numerous technical rules that apply to S corporations. Thus, for example, an LLC can have more than 35 shareholders; have foreign owners (-?members-?); have owners that are corporations, partnerships, trusts, or other LLCs; own 80% or more of the stock of an affiliated corporation; derive a large portion of its revenue from certain net passive income sources; and issue more than one class of stock. Violation of any one of these technical restrictions would disqualify an S corporation. To help physicians decide if a cash pay medical practice or a limited liability corporation is a possibility for their situation, Hippocrates Publishing stands available as an excellent medical marketing resource. Since 2004, Hippocrates Publishing has provided informative resources to thousands of medical professionals in countries around the globe. Hippocrates Publishing?s distinctive specialty is writing and publishing books and instructive booklets that guide physicians towards finding success with medical practice marketing and niche medical practices. Visit www.HippocratesPublishing.com or call today at 877-408-2462 for additional information on how to turn your cash pay medical practice into a limited liability corporation.

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Source: http://hotnews.blogspages.com/2012/10/30/top-reasons-why-a-limited-liability-corporation-makes-sense-for-your-cash-pay-medical-practice/

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