SSTB status and 199A
Medical practices are Specified Service Trades or Businesses (SSTBs) under Section 199A, which means the 20% QBI deduction phases out above $241,950 single / $483,900 MFJ for 2025. Structuring around the phase-out matters for partner-owners.
Retirement plan design
High-income practices benefit from layered retirement plans: 401(k) with employer match, profit sharing, and cash balance plan stacked. The total contribution can exceed $300,000 per high-income partner in the right structure.
Partner compensation
Guaranteed payments, eat-what-you-kill, and hybrid structures each have different tax and partnership accounting mechanics. We help practice groups evaluate and document compensation agreements.
Common questions
- Should a solo physician form an S-corp or a PLLC?
- Usually PLLC electing S-corp taxation. The PLLC gives the required legal structure; the S-election captures the payroll-tax savings.
Related
Corporation & Partnership Tax Returns
Forms 1120, 1120-S, and 1065 preparation for corporations, S-corps, and partnerships. Multi-state filings handled.
Business Tax Planning
S-corp reasonable salary analysis, entity elections, retirement plan structuring, and Section 179 planning for small business owners.
Small Business Payroll
Quarterly payroll filings: 940, 941, UCT-6, W-2, 1099. We handle the paperwork so owners can focus on growth.