Four main types of corporations exist in the United States:
- C corporations
- S corporations
- Limited Liability Companies (LLCs)
- Nonprofit Organizations
C corporations, S corporations and LLCs provide you with personal liability protection. S corporations and LLCs are commonly used for small business activities. Both enable you to grow your business and take on new owners. Both pass through income to owners who report it on their personal returns.
Find out how changing your small practice or business to a Corporation or a Limited Liability Company (LLC) can offer a range of advantages for the business owner. Most notable is that a corporation or LLC protects owners’ personal assets in case debts or legal judgments are claimed against the business. Corporations and LLCs are both separate legal entities (business structures) that enjoy certain protections under the law and important benefits. Please schedule some time to come in and meet to see the total benefits of doing so.
Your contract should be unique to your needs. Don’t be persuaded by “this is our standard contract; it’s okay to sign.” An ambiguous contract can make you contractually obligated to duties you did not plan or agree to perform. The duties should be listed in detail. These details are typically not added to your contract directly. This is where Max’s One Pager comes into play to protect you based on your “understanding” of the contract terms.
Compensation in the form of salary and bonuses/RUV’s should not be left to chance. Your benefits should be clearly defined. Max will get you a clear sense of deal breakers and must haves. Additional items important to you may be useful as bargaining chips while negotiating your contract. You should take advantage of the reduced rate for a contract review for your initial contract after residency or fellowship graduation.
LEGAL ASSET PROTECTION
It’s never too early or too late to start protecting yourself. After years of hard work, the last thing you want is to lose your assets due to some legal issue, bankruptcy, or court judgment. With the proper planning and preparation this can be avoided. The most common targets of litigation are physicians and people with professional careers. Max can sit with you and design an asset protection strategy that can put a stop to losing assets when you run into serious problems.
The two most important factors to asset protection are diligence and starting early. There are laws in place to prevent people from protecting assets once ¬they anticipate a lawsuit or bankruptcy. We will guide you to implement free asset protection strategies now (i.e. Wage Account), before you start accumulating wealth. Even if you think you’re going to be sued, it may be too late!
An important thing to note, you can be sued for more than your policy limits (malpractice, car insurance, etc.). We will work with you to make sure all areas where you’re exposed to lawsuits are covered. Keep in mind, it’s not always patients that sue physicians. Often times it’s a personal injury claim from someone who knows you’re a doctor. Remember, the general public thinks you’re rich. NEVER drive your car with your white coat on, and if possible, change out of your scrubs.
Remember: It’s not a matter of whether you will be sued, it’s a matter of when you will be sued.
Taxes are certain, but our team of legal, financial, and tax experts you can minimize the impact they have on your bottom line. Tax laws are constantly changing. You can save yourself time and stress by letting our team of experts prepare your personal or business tax returns.
We provide tax services, business planning, and more to individuals, both domestic and international, and businesses of every size. Our experienced team of legal, financial, and tax experts are here to assist you with tax-saving strategies. The goal of tax planning is to arrange your business affairs to minimize your taxes. There are a number of ways to reduce your taxes. Our experts will discuss strategies to minimize your tax liability to maximize your income. We will recommend investments, income and expense management, and other ways to legally reduce your taxes and allow you to keep more of the money you earn.
PREPARING FOR YOUR FUTURE
When you think about preparing for your future it should include being financially secure enough to enjoy your life in retirement. Of course until you get to retirement, life includes a number of expensive “firsts” like purchasing a car, buying a house, and starting a family. With all of these big ticket items it’s hard to even think about the future.
Preparation starts with some key items to be addressed before graduation, and optimizing your employment contract. We will provide you a check list to complete prior to leaving residency or fellowship (i.e. letter to risk management, keeping contact info up to date), and dig into your contract with a fine tooth comb. There is a very specific art to negotiating contracts in the physician world which we have perfected almost 25 years and 9,000+ contracts nationwide.
We will sit down with you and discuss whether or not you should incorporate. If your income is W2 only, 1099, or you have the opportunity to moonlight, our goal is to make sure you save taxes at the highest level.
If you have student loans, here is the time to establish the most financially beneficial method for repayment without sacrificing your own planning.
Throughout the planning process, we will review all accounts from banking, credit cards, investments, real estate, vehicles, and corporations to make sure they’re titled properly. If you are married, we will guide you as to the most advantageous way to title assets for asset protection with your spouse. This is something we will visit and revisit on a regular basis.
One of the largest areas of exposure for lawsuit is outside of the hospital. Always make sure you drive with caution and leave your white coat in the trunk. If at all possible, change out of your scrubs as well.
Research has shown that those who plan for the future end up more secure than those who do not. Successful people are goal oriented: they set goals and develop a plan to achieve them. No differently than you did prior, during, and after medical school. Our approach is to take the time to understand your goals and be your champion throughout your life in achieving them.
Remember, throughout our process we are accomplishing foundational necessities for physicians; a stellar employment situation, asset protection, and tax savings. Throughout your and your family’s life, our team of legal, financial, and tax experts are here to make sure you have the most successful medical career possible. Allow Max and his team to strategize with you in preparing for your future.
PAYING OFF STUDENT LOANS
Paying for a medical education is challenging. In fact, the majority of medical school graduates complete their education with the assistance of student loan financing. According to 2018, for most medical students, though, debt continues to be a significant concern. According to a recent Analysis in Brief, 76% of students graduate with debt. And while that percentage has decreased in the last few years, those who do borrow for medical school face big loans: the median debt was $200,000 in 2018. At private schools, 21% of students have debt of $300,000 or more. The average four-year cost for public school students is $243,902. For private school students, the cost is $322,767. We have designed strategies to deal with student loans and devise payment options to fit your budget. Remember, student loans can be refinanced multiple times.
The student loan interest deduction allows you to take up to $2,500 off your taxable income. Whether you qualify will depend on if you paid interest on student loans in 2018 and your modified adjusted gross income (MAGI) level.
For the 2019 tax year, the Fed has increased income thresholds, meaning that more borrowers will qualify for the student loan interest deduction for taxes filed in 2020.
Tax Filing Status Phaseout Begins Phaseout Ends
Single $70,000 $85,000
Head of household $70,000 $85,000
Qualifying widow(er) $70,000 $85,000
Married filing jointly $140,000 $170,000
We know that many married graduates are married filing separately to reduce income based repayments. Student loan interest and several other tax write-offs are not available for households that use this filing status. We have in house strategies to make loan interest deductible and expedite the payoff time period.
Wages, earnings or compensation of the head of household which are due for personal labor or services, including wages deposited into a bank account (provided they are traceable and identified as such) are exempt from garnishment or attachment under Florida Statute Section 222.11. A debtor is head of household if he financially supports someone for whom he has a legal or moral support obligation, such as a spouse, child, or parent. The dependent does not have to reside in the debtor’s primary residence. Exempt means that such wages cannot be reached by a creditor, except for alimony and child support payments, or except when the right to garnish wages is given to a creditor (such as in loan documents, in connection with a bank loan).
In Florida, the law provides for the protection of 100% of the head of household’s wages from garnishment even if the wages are commingled with other funds, as long as you can clearly trace and identify the wages deposited into the account. Advantages: The Asset Protection advantage is obvious in this instance, creditors cannot reach your wages for a certain period of time – at which you can construct and finalize your Asset Protection strategy, which may include these wages.
Wills and Trust
Will and Trust are very simple. If you don’t make a will before your death, state law will determine who gets your property and a judge may decide who will raise your children. The most basic estate planning document; a will outlines who should get your property and who will care for your minor children.
Our job is to work with our clients to make these documents more and more specific. When there is family wealth involved, there become many layers to these documents. The usage of familial assets can be predetermined for generations to come. We sit with our physician clients and take the time necessary to listen to their desires and plans for how their assets will be used by their spouse and subsequent generations. These documents are not just essential to a strong estate plan, but asset protection as well.
2151 S. LeJeune Rd #306
Coral Gables, Fl 33134
Tel: (305) 444-3484
Fax: (866) 676-4671