California Physical Therapy Corporation: S Corporation Benefits

by
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.

Form a California Professional Corporation Online

Visit LawInc on YouTube

Facebooktwitterredditpinterestlinkedinmail