Professional Entity Formation

Sansweet, Dearden and Burke, Ltd. (SDB) advises physicians and dentists on the type of professional entity to establish for their practice. The choices typically include a sole proprietorship, professional corporation (S or C corporation for income tax purposes), limited liability company, or limited liability partnership. In making such an evaluation, SDB considers liability protection, income tax, the cost of formation, and practical matters. In our experience, most newly-formed professional entities are either limited liability companies or S corporations. Both provide liability protection (but not against the doctor’s own malpractice) and a single level of tax.

Necessary Documents

SDB attorneys can also prepare and file the necessary documents with the Internal Revenue Service and the state, including the SS-4 to obtain the Employer Identification Number, and either Articles of Incorporation or Certificate of Organization.

Some practitioners also own real estate or surgery centers. Our firm advises clients about these practice-related activities, including entity formation, management agreements, and leases.