USA Is it worth opening a professional corporation in California if paid a K1


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First post I hope I did this correctly:


I need to figure out if it’s worth the cost to pay a tax attorney and a CPA to open a professional corporation as a surgeon in California. 2020 TY the combined tax was 47%. If a professional S Corp was opened would this lower the tax burden? I know the corporation would have to pay a “reasonable salary” so if 500k was paid on the K1 could the corporation pay 250k and then pass through the 250k as a dividend or something? Also would self employment tax have to paid?
 
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kirby

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At your income level you should already be working with a CPA to manage your tax situation.

"Physician, (let your own tax person) heal thyself"
 
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We have a CPA. They don’t form professional corporations and they ones I’ve spoken with want 3-5k for a consultation. If there won’t be a benefit to a professional S Corp I would rather not waste time or money. I know a surgeon is regulated than a normal professional or they are in California. Don’t mind paying for it all to be set up correctly if it will actually be a benefit. If it’s just going to be more paperwork and add on another expense, I don’t see the point.
 

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