Private Practice Accounting Blog

How To Pay Yourself In Private Practice?

02

Oct

LLC, PLLC, SalaryGetting Started

How To Pay Yourself In Private Practice?

How to Pay Yourself in Private Practice? For most therapists in private practice, it depends. No, really — it does. I ask each client a handful of questions when trying to determine how much they should compensate themselves: How much work do you do? Do you have any employees? How much money are you currently making? Are you a PLLC or LLC? Are you an S-Corp? (The below information does not apply to S-Corps because S-Corps require a reasonable compensation.) Generally, I’ll look into your records and cash flow to help determine your salary. However, the following chart works well…

Should I be an S-Corp? LLC, PLLC?

Starting off such a comparison is like comparing apples to oranges. A PLLC, or an LLC, is how your business is formed with the state. An S-Corporation election is made on the Federal level for taxation purposes. So, if you are already a PLLC or LLC, continue on. If not, our PLLC vs. LLC post will help you identify what decision is best for you. We’re always asked questions about companies that wish to become S-Corporations in an attempt to save on taxes.In response, the first thing I discuss with clients is if becoming an S-Corporation is going to save…

PLLC vs LLC

What’s the difference between a PLLC and an LLC? An LLC is a Limited Liability Company. If set up properly, an LLC will protect your personal assets, such as your house, car, and other personal belongings. Establishing an LLC separates your personal assets from your business assets. If your business fails, only your business assets can be used to settle its debts.. Most small business that want to incorporate form LLCs. But what are PLLCs, and how do they compare to LLCs? A PLLC is an LLC for certain industries. If your industry requires you to have a license or…