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 also substantial current tax benefits, 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 “C-Corporation vs. S-Corporation Page” and my article “Professional Group Practice Options“ for details.
