Dentist Has Questions About What Entity He Should Chose.

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. It’s easy to research though.

All that said, I’d like to address the one thing you mentioned about starting up. IF that’s going to be funded through a bank I’d be leaning towards LLC/PLC so you don’t get trapped with the S-Corp tax basis issue. Unless you get the loan IN your individual name and lend those funds to the S-Corp.

I’d have to ask you a couple of questions to determine if C-Corp would even be an option, but I doubt it.

Oh, and even IF you create the entity in say DC, if you work in the other states you generally have to register that entity in those states to do business and depending on which district or state is your residence you may wind up filing returns in more than one state.

Good luck!

This first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at

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