Header Image

Choose Business Structure LLC vs S-Corp vs C-Corp

When buying or Selling a Medical Practice, Home Healthcare Agency or any other type of Medical / Healthcare Business, you should always consult with a CPA and a Healthcare Attorney to determine which type of entity to set up prior to your acquisition. When selling you are going to want to know how your current C-Corp, S-Corp, Partnership or Schedule "C" business will be taxed when you sell. Remember, it's not how much you make when you sell but more importantly, how much you keep. 

Below is some basic info on Structure Types you can discuss with your CPA. 

C-Corp, S-Corp, Partnership or Schedule "C"

Business structure

Ownership

Liability

Taxes

Sole proprietorship

One person

Unlimited personal liability

Personal tax only

Partnerships

Two or more people

Unlimited personal liability unless structured as a limited partnership

Self-employment tax (except for limited partners)

Personal tax

Limited liability company (LLC)

One or more people

Owners maybe not personally liable

Self-employment tax

Personal tax or corporate tax

Corporation - C corp

One or more people

Owners maybe not personally liable

Corporate tax

Corporation - S corp

One or more people, but no more than 100, and all must be U.S. citizens

Owners maybe not personally liable

Personal tax

Corporation - B corp

One or more people

Owners maybe not personally liable

Corporate tax

Corporation - Nonprofit

One or more people

Owners maybe not personally liable

Tax-exempt, but corporate profits can't be distributed