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12k for PLLC tax setup and file? Advice seeked

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  • 12k for PLLC tax setup and file? Advice seeked

    Long story short:

    Bought into our practice this year and became partner. Started my own PLLC and run the business as a pass through to pay myself.

    My partner and the actual dental practice use a financial group to do tax work and file, so I assumed I should just use them as well since they had a lot of the leg work already done from previous filings with the practice.

    After 6 months and multiple meetings, they have not been able to tell me which accounts to set up (sep, solo 401, etc) and have only told me to be a PLLC and be taxed like a SCorp. The practice currently offers a 401k match to all employees that I could take part in. They've also tried to sell me multiple things apart from tax planning that do not interest me.

    The kicker is this: they want 12k to file my taxes for my personal PLLC, individual, and to set up an initial "tax strategy". They want 8k a year, every year afterwords. I wish this would have been made known to me from the very beginning, but it's a lesson learned for the future. To me, this seems high. After asking around, it seems like most my dental friends who are owners pay around 2-3k.

    I'm looking for general advice on how to move forward. Any suggestions on investment accounts, tax planning, entity setup, and/or general advice would be greatly appreciated.

  • #2
    It sounds as if their fees are inversely related to their usefulness. Those fees are ridiculous.

    This is a scam. Pigs get fat and hogs get slaughtered. They are banking on the assumption that all partners will "need" them. My advice is that you do not move forward.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Sounds like a total ripoff for your situation.

      You can setup a PLLC yourself quite easily.  Whether you should s-corp or not depends on your income level, if you care to provide.  There are several threads on this topic as well.

      If your practice is running a 401k then you cannot to set up a SEP or solo401k, you would be covered under the practice plan.  Figure out who is administering it and get a copy of the plan document.  In my spouse's case we used fidelity for a "investment only" non-prototype account, under the practice's plan document.

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      • #4
        Thanks for the reply. The PLLC has already been set up. At this time I was advised to pay myself a "reasonable" salary, which we decided on 12k a month.  On an average month I take around 30k for my collections portion. We take a quarterly draw as partners, usually around 30k each quarter. That adds up close to 475-500k. This is my first year as a partner, so we will see, but so far that is what it looks like.

         

        The 401k is set up with a guy named James Lunney and his group "The wealth strategies group or WSG". I have all the documentation. I wish it were another option, as I am a firm believer in a 3 fund portfolio and keeping things as simple as possible.

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        • #5


          Thanks for the reply. The PLLC has already been set up. At this time I was advised to pay myself a “reasonable” salary, which we decided on 12k a month.  On an average month I take around 30k for my collections portion. We take a quarterly draw as partners, usually around 30k each quarter. That adds up close to 475-500k. This is my first year as a partner, so we will see, but so far that is what it looks like.
          Click to expand...


          I am not sure exactly what you mean by these terms.  I am assuming you have already elected to be taxed as an s-corp.  If by salary you mean your W2 salary, that might be on the low side.  Are you taking the extra $$ as a distribution from the s-corp?  Taking ~25% of profits as salary and the rest as a distribution probably is pushing it.  I am however not a CPA etc.

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