TAX TIPS FOR DOCTORS, BUSINESSPEOPLE, AND INDIVIDUALS

#1 Tax Tip for Doctors: Choose your form of business wisely. You can conduct your medical practice as a sole proprietorship, a partnership, a regular corporation (personal service corporation), an S corporation, a limited liability company (LLC), or a limited liability partnership (LLP). The form that you choose will have a direct bearing on the amount of tax you pay. As you may expect, each form has advantages and disadvantages. Don’t make your decision based on the recommendation of colleagues. Get professional assistance so that you make the right choice for you.

#1 Tax Tip for Businesspeople: Choose your legal form of doing business carefully. The tax and nontax consequences of the form you select are significant. The basic forms of operation from which to choose include sole proprietorship, partnership, corporation, or limited liability company. Seek professional assistance before deciding, and review your chosen business form from time to time to see if it’s still appropriate. 

#1 Tax Tip for Individuals: Review your deductions toward the end of each year. If you’re close to the cutoff point between itemizing or taking the standard deduction, consider the advantage of bunching your deductible expenses every other year. You can then alternate between itemizing one year and taking the standard deduction the next, saving tax dollars by doing so.