Category: Dental CPA Blog

I became an IC in June of 2010 and paid my current CPA about $700 to incorporate me. What did that involve? I suspect it not only created your entity it covered applying for your fed and state ID numbers as well for corporation income and payroll taxes. If so I think that amount is…Read More→

I live in Massachusetts, but I am using a New York CPA for my taxes. I was happy with what he did for my taxes so far, but ever since I began the process of my start-up, I have started to lose some confidence in him. Even though I told him that my start-up was…Read More→

Suze Orman recommends 8 months worth of your monthly income for a “rainy day” fund in your savings account What does a dentist keep in his business Checking and/or savings Fund.. For those slow months, accidents or facility issues can spring up on us. 6 months worth of Operating Expenses? It directly conflicts with take…Read More→

2010 was the first year for my practice as a startup, a PLLC. We are showing a big loss. Does that loss get carried over to my personal return so I get a refund? (I made money working for someone else and money as an employee of the startup.) You should under the right situation,…Read More→

I have another general dentist friend and we want to vacation together, but not necessarily hit a dental course together. We practice in the same space, but have separate corporations. Is there any way to take a vacation together and run it through our respective businesses? If you’re asking if a personal vacation can be…Read More→

Hi. I need your help and guidance. How can a GP and a periodontist enter into a fair agreement? I have been practicing for 21 years in a small FFS office. Current lease is up and moving into a new 6 OP office. He is a young up and coming periodontist. We both have similar…Read More→

If a patient’s treatment plan is $1000 and they use a 3rd party finance company like Care Credit, the total amount I receive is something like $900 (for example). How do you account for the “finance fee” difference? Currently I enter $900 as payment received and enter $100 as a write off. Is there an…Read More→

I am wondering if you have had experience with startup practice consultants and if they are worth it. Thanks a bunch!! I can’t answer your question specifically; however I can tell you we picked up a client in December who started from scratch in April 2010 and used a start-up company that professed to handle everything. I…Read More→

For someone who has maxed out their ability to invest in tax-deductible products (i.e. 401k/profit sharing/SEP), wouldn’t it make sense to contribute money that otherwise would be invested in a taxable account to a non-deductible IRA and then immediately convert it to a ROTH? Now that the conversion income limits are gone, I would think…Read More→

I’m setting up a solo practice in MD and will do some independent contracting in MD, VA, DC. Which is advisable: S-Corp, LLC, PLLC? It depends (typical CPA answer, right?) Seriously. It depends on where you form the entity. For example, MD has the LLC, VA has the PLC, and I’m not sure about DC….Read More→