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Dental Tax Services

 

 

 

Schultz & Associates, CPA, Tax Preparer

 

Dental Tax Services and Accounting

schultz logoWe have helped various dental practices and dentists throughout Metropolitan Detroit and the rest of Michigan with accounting, bookkeeping, payroll , tax preparation, planning and advisory.accounting and taxes.  We advised and consulted on various tax compliance and tax planning questions.

 

Dental Tax Services, Support and Advisory

schultz logoWhether you are an individual, self-employed small business, C or S Corporation, PLC, Partnership, or Professional Corporation, our experience allows us to development tax strategies that take advantage of new tax laws and legislation. We keep our clients informed of changes and make sure that you the client understand the changes and implications it has on your profession. Our dental tax services are customized to fit your needs.

 

Dental Tax Services, Support and Professional Accounting Services

  • Dental professional accounting
  • Dental tax services
  • Estate planning
  • Tax planning
  • Dental practice purchase and sale
  • Tax advantage strategies for Dental Professional Corporation’s and PLC’s
  • Individual income tax return preparation and planning
  • Payroll tax preparation
  • Payroll processing
  • Retirement planning advisory
  • Business continuation planning

 

Things to Think About When Purchases a Dental Practice

  • Are you familiar with the types of procedures the current dentist performs.
  • Do you want the dentist to help with the transition.
  • Is your philosophy on dentistry consistent with the practice you are purchasing.
  • Will the hygienist remain on staff.
  • What is the average age of the patient base.
  • How many cases are currently open
  • How old it the equipment
  • How are charts kept
  • Does the chart shelf only hold current patients.

 

Tax Tips for Dentists and other Medical Professionals

Dental Practice Business Formation

If incorporating your dental practice you will be formed as a Personal Service Corporation. Dentists that choose this form of operating will have to choose between being taxed as a S Corporation or a C Corporation.

Dentists with S Corporation’s

Dental Tax Services

  • A properly filed S Election must be submitted within 75 days of incorporation.
  • Filing Form 2553 is required in order to elect to be taxes as a S Corporation
  • Relief is available for S Elections that missed the 75 day deadline.
  • S Corporations file Form 1120S for federal income tax purposes.
  • S Corporation generally file taxes on a calender year basis, and are generally due March 15.
  • Dentist’s using an S Corporation for their practice do not pay tax along with filing Form 1120S.
  • Dentist’s using an S Corp pay the tax on their business profits on their individual income tax return.
  • A Shareholder of an S Corporation should tax some level of “reasonable salary” and receive a W2.
  • Dentists in a S Corp will take a salary but also may receive “profit distributions”.

Dentists with C Corporation’s

DentistA dentist who incorporates without electing Sub S must file Form 1120 for federal tax purposes

  • The IRS considers incorporated dental practices to be Personal Service Corporations (PSC)
  • Profits in a PSC are calculated at a flat rate of 35%.
  • Dentists electing S Sub avoid the 35% flat tax.
  • Dentists filing Form 1120 should also tax a W2 wage.

Dental Practice Payroll Services

Our payroll processing includes secure receipt of payroll checks. Clients have the option of having there paychecks direct deposited. Reports are provided so data can be efficiently entered into client accounting software. Tax amounts are impounded from your business checking account and remitted to the proper taxing authorities. All payroll reports are properly and timely filed.  W2’s are provided in their envelopes and ready for distribution.

Dental Tax Services for Retirement Plans

Because we are also a CPA Firm we have a deep understanding of the various retirement plans out there. We understand the compliance requirements under ERISA as well as the DOL. We can assist with the administration of these plans. And make recommendations for a plan that best suits your practice.

retirementAlthough most people are familiar with 401(k) plans we often find the SIMPLE IRA to be a good fit for a lot of practices. While there are many options. the SIMPLE IRA is easy to administer and does not require any testing to determine if the higher compensated employees are contributing in excess of their limits.

Dental Tax Services for Payroll Structuring

Owner compensation for a dental practice has many moving parts.  It is necessary to understand what type of entity the dentist has established. The way a Dental is compensated is different from S Corp to sole proprietor as well as C Corp or partnership. It is also necessary to look at determining what a “reasonable compensation” package should be. The IRS provides guidance on this. However there is no one formula.  It is also important to lot at the dentists specialty.  Obviously different specialties are compensated at different rates. Another important factor in compensation structure is the dentists desire to save money.  More specially, we need to know how much the dentist would prefer to put away for retirement. Once also of these things are taken into consideration then we can determine what the proper compensation should be for any particular dentists.

 

 

 

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