by LawInc Staff
January 9, 2023
Are you a California physical therapist interested in forming a California professional physical therapy corporation? If so, there are many benefits to doing so. Consider the following:
Limited Liability Protection |
California physical therapy corporations can help provide the physical therapist owners with liability protection in case of a lawsuit (except in cases of malpractice). |
Tax Deductions |
Incorporating your physical therapy practice can provide certain tax benefits like the ability to more easily deduct business expenses. |
Tax Savings |
Taxing your professional physical therapy corporation as an S corp allows the ability to reasonably minimize your payroll taxes. |
Pass-Through Taxation |
Unlike C corporations, California physical therapy corporations taxed as S corporations avoid “double taxation.” Profits and losses are passed down to the physical therapist owner(s). |
Retained Earnings |
Since S corporations are not taxed at the corporate level, it can be easier for the physical therapy corporation to retain earnings and reinvest them into the S corporation. This can be helpful for physical therapy corporations that want to build up their cash reserves. |
Employee Benefits |
It is easier to offer employee benefits like retirement plans and health insurance through a California physical therapy corporation. |
Continued Existence |
Physical therapy corporations allow for perpetual existence. This means that the professional corporation has a “life of its own” and can continue to exist even if the shareholders (owners) change. |
Credibility |
Operating as a corporation can provide credibility to the physical therapy practice. |
LawInc Can Help You Form a CA Physical Therapy Corporation
If you are a licensed California physical therapist and need help starting a physical therapy corporation, LawInc is here to help.
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