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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I work for a corporation as a dentist for the past twenty years

Customer Question

I work for a corporation as a dentist for the past twenty years and will continue working with the same company. I was told by a cpa that I should start a C corporation to pay less in taxes. Is this really an option if I work for a corporation?
Submitted: 3 years ago.
Category: Tax
Expert:  Megan C replied 3 years ago.

Customer:

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it

Customer:

How are you today.

Customer:

If you have your own C Corp, you would be a qualified personal service corporation and your profits would be taxed at a flat rate of 35%

Customer:

You could minimize this by paying yourself more salary, which is tax deductible. However, I'm unsure as to why you were told to start a C Corporation. An LLC or S corporation may be a better structure.

Customer:

You can read more about having a dental practice as a C Corp, here:

Customer:

http://www.dentistryiq.com/articles/2011/09/dental-c-corp-owners.html

Customer:

However, if you actually work for another corporation you couldn't become a corporation and have them pay your corporation. You are still an employee.

Customer:

So, having a corporation would not help you lower taxes as an employee.

Customer:

Is there anything else that I can assist you with today?

Customer:

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Expert:  Megan C replied 3 years ago.

.

Expert:  Megan C replied 3 years ago.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer