Monday is normally a “buffer” or business development day – and I’ve been working with Bonnie on the future cash flow forecasts and also a preview of our corporate structure and tax planning for 2007.
With the aid of knowledge from our accountant, we are considering some alterations to the way our company is set up, in order to take advantage of legitimate strategies to reduce the overall burden of personal and corporate taxes.
Although I am not a dentist, I was mindful as we spoke, that many of my clients are currently considering the incorporation of their dental practices IF a clear advantage can be demonstrated.
Along with other advisors to the profession, I have counselled caution in this regard, because a perceived saving in tax can bring with it a raft of consequences from an administrative, time management and reporting perspective.
At The Dental Business School, we are considering the relative merits of partnership, limited liability partnership and incorporationfor 2007 and beyond.
Its a complex issue and I’m a lot further on in my understanding today.