Choosing the right business entity is a critical decision for medical professionals. In California, Professional Corporations (PCs) are typically required for medical practices, while Limited Liability Companies (LLCs) are not permitted to provide professional medical services.
Compliance with California Laws
California law mandates that only PCs can provide professional medical services. Forming an LLC for this purpose would violate the Medical Practice Act and result in penalties.
Tax Benefits
PCs offer various tax advantages, including the ability to establish retirement plans and deduct certain expenses. These benefits can be substantial compared to sole proprietorships.
Liability Protection
Both PCs and LLCs provide liability protection for their owners. However, PCs are specifically designed to meet the unique needs of medical professionals, offering protection from business liabilities while ensuring compliance with state laws.
At the Law Office of Kris Mukherji, we can help you determine the most advantageous structure for your medical practice. Contact the Law Office of Kris Mukherji at www.kmsdlawoffice.com to learn how we can assist with your legal needs.