Tax advantages are a major reason to establish a group practice as a general partnership of multiple corporations, as opposed to a single corporation. These advantages are most significant in relation to future buy-outs or buy-ins. However, there are current tax benefits too, mostly relating to the partners’ ability to choose their own solutions to tax questions without requiring approval from, or even notification of, the other partners. Please see my articles Huge Tax $avings for S Corporations and More Tax $avings for S Corporations: Bypassing the SALT $10,000 Deduction Limit for details. You can also compare tax effects of different corporate entities at my “C vs. S Corporation,” “Corporation vs. Partnership” and “Corporation vs. LLC” pages.
