You just formed your medical practice in Alabama, and you either chose a professional corporation (a "PC") or an LLC. If you went with a PC, you get to choose between an "S" corporation ("S corp") or a "C" corporation ("C corp") for federal and state tax purposes, both named after the Internal Revenue Code (the "Code") Subchapter that governs their taxation. Using an LLC provides an additional income tax option, a partnership, while still allowing you to choose S corp or C corp treatment. But which one is best for you, and why do so many tax practitioners recommend S corps in the medical world?
Originally Published in the Birmingham Medical News - November 2016.
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