People who know me know that I’m pretty cheap. OK, cheap isn’t the right word as I certainly do like to vacation, but when I can save a dollar, even if it creates a bit of a hassle, I will. On the other hand, I’m also very conservative when it comes to the taxman, so I tend to avoid maneuvers that may increase my risk of an audit even if my accountant says they’re legal.
As a result, even though I’ve heard stories of doctors incorporating themselves for years, I’ve always avoided it as one of those maneuvers that, while technically legal, didn’t pass the sniff test. This year, though, I changed my mind and now I am the owner of a new S corporation, Five Roses Urology, PC (named after my wife and four beautiful daughters).
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Why the change? As a resident, I found a website called whitecoatinvestor.com, which is written by an ER doctor and offers physician-specific financial advice. The author of this website has the same conservative financial leaning as I do and, to this date, I have found his advice to be honest and insightful. This year, he converted his company to an S corp, which he says was an easy decision when he considered some of the defensive advantages of an S corp.
Before I explain my reasoning for the switch in more detail, as I think there are numerous other urologists out there who may be in this same situation, let’s go over some background.