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best business structure for doctor?

Discussion in 'Accounting, Tax & Legal' started by danrts, 26th Jul, 2009.

  1. danrts

    danrts Member

    Joined:
    26th Jul, 2009
    Posts:
    14
    Location:
    Qld
    I'm an anaesthetist in private practice, and currently registered as a sole trader, with an ABN. I do not have a company. I have approx. $2500-3000 per month business deductions as the costs of sending out bills etc are shared between 14 of us in the practice. (compared to say, a surgeon who shares costs between himself and maybe one other partner). Until now I've been single but now I'm engaged, is there a benefit from setting up a discretionary or family trust so I can distribute income to my future wife? My accountant said just try to claim as many deductions as you can, but didn't mention anything about trusts etc.
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi and welcome to InvestEd

    With respect, I think you need a new accountant!

    You may need to remain as a sole trader (that will depend upon lots of things, including your current business arrangements) but you should investigate whether a service trust (often referred to as a "Phillips" trust) could assist you. Also, a family trust is usually beneficial to provide asset protection and flexibility.

    As you may have gathered from the size of your PI insurance bill, yours is a high risk profession for being sued. As such, asset protection should be high on your list of requirements for any investment structure.

    Good luck with it.
     
  3. danrts

    danrts Member

    Joined:
    26th Jul, 2009
    Posts:
    14
    Location:
    Qld
    Thanks for the reply. Surprisingly, the medical indemnity insurance is $9,000 per year which is a lot less than some of my medical colleagues.
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Gee that's low! Perhaps it's because your patients are always asleep so they can't complain...:D (sorry couldn't resist...have a good friend who's an anethetist)

    Cheers
    N
     
  5. Scott K

    Scott K New Member

    Joined:
    24th Aug, 2009
    Posts:
    3
    Location:
    Geelong
    Dear Danrts, i am a Partner in Accounting firm that specialises in Anethatists from Taxation and Accounting perspective. It is a very specialist area and there are very significant issues if it is not structured well. There are many benefits to be achieved also. Feel free to reply if you need assistance, my firm would be more than happy to assist. Regards Scott.