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Hi, my name is Mark. I will be happy to help you with your questions. Does the doctor own 1/3 of the medical office. Please give me a few moments to prepare a response.
Based on the rules the consulting company would be an affiliated service group. An affiliated service group is one type of type of group of related employees and refers to two of more organizations that have a service relationship and in some cases an ownership relationship described in IRS 414(m). An affiliated service group would fall into one of three categories: organizations that are designated as a first service organization (medical office), B organizations consist of a first service organization and at least one b organization, and third would be a management group.
Let me give you the requirements of a B-organization. Sorry but the rules are very technical.
For a B-Organization a significant portion of its business must be from performing services for an A-organization.
The services must be of a type historically performed in the service field of an A-organization.
10% or more of the interest must be held by highly compensated employees.
The only way that this would not qualify for an affiliated service group is the consulting company were not providing services typically performed by the medical office. You would need to show that the consulting was separate from the medical services.
No, not deducting the retirement expense on form 1065 does not matter. If this is an affiliated service group then the members of the LLC would be treated similar to the employees of the medical office. You would not be able to discriminate.
https://www.irs.gov/pub/irs-tege/epchd704.pdf. Here is a link to the IRS regarding training material for affiliated service groups. The affiliated service group starts on page 40 and is just over 60 pages.