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Should my dental practice be an S-Corp?

Incorporation & entity structure

Often yes, if the practice is profitable and you are drawing meaningful income. The S election lets you split income between reasonable salary and distributions, which reduces payroll tax on the distribution portion.

Reasonable salary is the constraint. Set it too low and the IRS can recharacterize distributions as wages.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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