Starting your own medical practice can be a huge undertaking. You are responsible for countless decisions that could catapult or sink your business. This is why many medical practices work with an attorney to help with the legal side of things. When it comes to choosing the most efficient legal entity for your medical practice, you’ll want to discuss your goals with your lawyer. This involves medical, legal, financial, and tax matters. A lawyer can also advise you on whether or not you should incorporate your medical practice.
There are many benefits to incorporating your medical practice. Read below to find out more.
Incorporating your medical practice ensures that, overall, you are following legal formalities. Corporate laws are first laid out by the owners and lawyers of the medical practice based on practical goals. Beyond that, corporate duties may include holding regular meetings, filing tax returns every year, and discussing employee payment and benefits. You may also want to go over liability issues and have this properly documented.
Incorporating your medical practice gives you several financial benefits. This includes being able to pay employees regularly and properly through a corporate system with stock options and bonuses. Corporations also attract more investors by way of stock, meaning more money for your business first hand. Another financial benefit is that because shareholders also own the corporation by the number of their shares, anti-kickback enforcement protects the doctor from compensation based on value or patient intake. In addition, corporations will handle franchise taxes and the cost for maintenance and accounting. On your own, you will be paying a large sum of legal fees.
Overseeing the medical practice with a set guideline of written laws and regulations enforced by the corporation is one of the greatest benefits. These guidelines are set out at the beginning of incorporating a medical practice and may include: requirements for employee hiring, daily medical practices, purchasing equipment for the medical practice, cleaning the equipment for the medical practice, and who determines certain daily decisions. While a director of operations oversees the totality of these regulations, a manager or several managers will oversee these details. These rules can help to keep a medical practice organized and ensure that your business is being run exactly the way you’d like.
Limited liability is another important benefit of establishing a corporation for your medical practice. Find the pros and cons of limited liability in this study. In cases where you are the primary physician for a medical practice, all of the liability will fall on you. This includes debts, vendor contracts, management of employees, and property lease tasks. In addition to working on patients and improving your business, this is a lot to undertake. Incorporating your medical practice allows some of these duties to be shared so there is not as much holding you personally at stake. Insurance is also great to have on hand if anything goes wrong, but a corporation sharing some of the more non-medical conditions is important to have under your security belt as well.
Another benefit of incorporating your medical practice is that you can more affordably offer health care and retirement benefits to yourself and your employees. Corporations involve more people handling these things for you, but you have the right to sit down with them and choose which options are best.
Medical Office Lease in Los Angeles
Incorporating your business is like gathering a support group for your art project. Having other people liable and contributing in areas where you lack knowledge is important for building a strong business. This includes finding the right medical office lease in Los Angeles. If you’re looking to work with others to create a strong foundation for your business, incorporating is the way to go. Start by working with a leasing team at Boulevard Medical Properties and get a free quote on available spaces today.