Choice of Entity for Semi Retired Doctor

[Skate1968]

Could this doctor switch from a corp to an wholly owned LLC to reduce accounting fees?

When his practice was bigger and he had employees he became a corp. But now with only himself working a few hours per week it seems like a lot of paperwork for very little activity. But then again I'm not sure what kind of malpractice he'd have as an LLC. (Can doctors even be LLCs?)

I'm very green in this area. If someone could point me in the right direction i'd like to get some general ideas. This decision will probably be made by another accountant.

Thanks.

[erchess]

Hmmmmm

In North Carolina a Doctor can be an LLC, and I don't think he will have a problem getting malpractice insurance. Just be sure that when the LLC Paperwork is filed the election of how to be taxed is to your and the Doctor's liking. Presumably you won't choose C-Corp. You could choose S-Corp but he could also make the Sub-S election without becoming an LLC. He could also elect to be a Sole Propreitor.

[Gretel]

Yes, it depends on the state you are in if doctor can form LLC. In my state it would be PLLC (Professional LLC). I think he can go with Sole Proprietor since he is liable anyway for everything he does.