Best Legal Structure for a Surgical Practice: How to Protect Yourself and Save on Taxes

If you're launching or restructuring a surgical practice, one of the most important first steps is choosing the right legal structure. This decision affects your taxes, liability protection, and how easily you can grow or sell your practice in the future.

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Common Legal Structures for Surgeons

LLC (Limited Liability Company): Offers liability protection and flexible tax options. However, some states don’t allow medical practices to operate as standard LLCs—you may need a PLLC (Professional LLC) instead.

S-Corporation: Allows for potential tax savings by splitting income into salary and distributions. This must be structured correctly to avoid IRS scrutiny.

C-Corporation: Less common for solo or small group surgeons due to double taxation, but useful for larger surgery centers or when planning for future investors.

Professional Corporation (PC): Required in certain states for healthcare professionals. Protects personal assets but must comply with medical board regulations.

Risks of Choosing the Wrong Entity

Personal Liability Exposure: If your entity isn’t set up correctly, your personal assets could be at risk in a lawsuit. Learn more about Plastic Surgeon asset protection.

Overpaying in Taxes: The wrong structure can cost you tens of thousands in unnecessary taxes or lost deductions.

Compliance Issues: Healthcare practices have unique legal restrictions. Using a general-purpose LLC may violate state medical laws.

Partnership Problems: Without the right structure, adding partners or exiting the practice becomes legally messy and expensive.

Sale or Exit Complications: The wrong entity can reduce your practice’s valuation or complicate a future sale.

→ Get Legal Guidance For Your Unique Situation

Get It Right From the Start

Working with a surgical practice business attorney ensures you choose the best legal structure for your specific situation, minimizing risk and maximizing financial efficiency.

When your legal foundation is solid, you’re free to focus on what really matters: growing your practice, helping more patients, and building a career—and life—you’re proud of.

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