Purchasing and buying into a dental practice offer many opportunities for success, but unfortunately, the business side sometimes takes a back seat to the emotional side. Our team of Dental CPAs is equipped with a proven process that eliminates the surprises many dentists encounter when they try to buy a dental practice on their own, or hire counsel that has little or no experience in these types of transactions.
We will advise you on how the transaction will impact your income tax return in the year of purchase, discuss the type of entity to purchase the practice and other matters to achieve income tax positioning to your advantage.
We will educate the prospective buyer on the various entities they should consider and how these entities may be impacted by both federal and state laws. For example, while many dental practices end up becoming S-corps at some point, rarely do they begin that way, and in some states, being an S-corp can cost you MORE income tax than other types of entities. By working with our team of experts, you are supported by a team that knows the various state regulations and can provide the best recommendation in entity selection from the beginning.
We also want to make sure the prospective buyer understands how the transaction could impact their income taxes in the year of purchase, so there are no surprises.
Much too often we acquire clients AFTER they’ve purchased a practice only to find out A. they may have selected the wrong entity from the beginning and B. they had no idea how the transaction would affect their income tax return.
We want to prepare income tax projections for the year your start-up will open its doors for several reasons. We do NOT like surprises, we want you to be prepared for the impact this endeavor will have on your income tax returns for that year. This service will also allow us to advise you on various income tax strategies that we may deploy for the optimal income tax positioning, not only in your first year, for future years as well. We consider the timing of when deductions should be taken, how certain expenses should be categorized, such as capital and operating expenses, portions of the tax code that will benefit you like Code Sec 179 and 197 and so forth. Planning WHEN to take your deductions is imperative.
Lastly, We will be available to assist you with routine business matters on which you need assistance and seek our advice regarding your acquisition. We are here to help you through the process no matter the questions you have.