Gather the Troops

I've been working lately with a lot of dentists and physicians who are either purchasing a practice, or starting a scratch practice. I'm also working with some doctors who are combining their practices into one.

One crucial thing I've picked up from this is the need to "gather the troops" early. I realize that most doctors are aware that they need a good CPA, attorney, consultant, etc. to help them in a practice transition or start-up. The part they miss sometimes is the timing.

Bringing the CPA into the picture one week before opening the doors is not good practice. I'll give one good reason today, and fill you in on some more next time...

Reason #1. One important decision you will make in starting your practice is operating entity selection. Will you incorporate, or not (another hot topic for another day)? If so, will you be an S corporation, or a C corporation? This is an important decision that you should consult with your CPA and attorney about before diving in.

If your colleagues have already convinced you that you must be incorporated, you'll need to talk to your attorney about getting the articles of incorporation, etc. You'll need to talk to your CPA about making the S corporation election. This needs to be done within two and a half months of incorporating. Please don't make your CPA write an embarrassing letter to the IRS about how the client didn't know they only had 75 days, and there was a miscommunication, etc. Just the thought makes the hair on my neck stand on end!

Tune in next time for more reasons to gather the troops early...