Taxes for law, dental and medical practices
Law practices, dental practices, and medical and other professional practices: each structure changes the numbers, and we plan around those rules from one office in Metairie.
Who we work with
Three audiences, three different structures.
Law practices
Client money belongs in a trust account separate from the firm’s own, and Louisiana lawyers keep trust records for five years. Payments for services to attorneys are among the payments reported on Form 1099-NEC.
Dental practices
A contracting associate’s fees are self-employment income: net earnings of $400 or more carry self-employment tax. An owner can defer $24,500 into a one-participant 401(k) for 2026.
Medical and other practices
Health and law are specified service trades or businesses, so the qualified business income deduction phases out as taxable income climbs. We run the numbers before anyone assumes the deduction is there.
What we do
The services professional practices use most.
- Bookkeeping & Payroll Monthly books, payroll and tax-return ready financials.
- Business Tax 1120-S, 1065 and LLC returns, sales tax and IRS representation.
- S Corp Questions Election, owner payroll and the 1120-S. Sometimes the answer is no.
- Personal Tax Individual and multi-state returns, plus IRS support.
- Year-End Tax Planning Strategy built before filing season, with a dedicated point of contact.
- Reasonable Compensation Estimate a defensible owner salary from the roles you fill and market wage data.
Rules that change the numbers
Published rules, each with its source.
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An S corporation must pay a shareholder-employee reasonable compensation for services before any non-wage distributions, and the IRS can reclassify distributions as wages subject to employment taxes. IRS, S Corporation Compensation and Medical Insurance Issues, as of November 2026.
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Health and law are specified service trades or businesses; the qualified business income deduction phases out between $197,300 and $247,300 of taxable income for 2025 ($394,600 to $494,600 married filing jointly). IRS instructions for Form 8995-A, as of November 2026.
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Self-employment tax is 15.3 percent of net earnings: 12.4 percent for Social Security, 2.9 percent for Medicare, once net earnings reach $400. IRS Topic 554, as of November 2026.
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Form 1099-NEC reports service payments totaling $2,000 or more made after December 31, 2025, including payments to an attorney. IRS, Form 1099-NEC FAQ, as of November 2026.
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A one-participant 401(k) lets an owner defer $24,500 in 2026, with total contributions up to $72,000. IRS, 401(k) and profit-sharing plan contribution limits, as of November 2026.
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Louisiana lawyers who hold client money keep it in a trust account in Louisiana or the state where the office sits; the IOLTA program is mandatory for most attorneys and law firms. Louisiana State Bar Association, trust accounts, as of November 2026.
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Attorneys, certified public accountants and enrolled agents hold unlimited representation rights before the IRS, including audits, collections and appeals. IRS, preparer credentials and qualifications, as of November 2026.
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Louisiana corporations and LLCs file their original formation documents and annual reports with the Secretary of State’s Commercial Division. Louisiana Secretary of State, file business documents, as of November 2026.
How we work with you
From the first conversation to year-round support.
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Discovery
We learn your practice, your goals and your full financial picture.
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Planning
A year-round tax strategy built around your situation, not a template.
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Execution
Returns, bookkeeping and compliance, handled on time.
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Advisory
We adjust the plan as your practice, your family and the law change.
Questions people ask
Tax attorney or CPA: which do you need?
Attorneys and CPAs both hold unlimited representation rights before the IRS, including audits, collections and appeals. The split is the work: this firm prepares the returns, books and payroll and plans the tax year; an attorney is the professional for legal advice in a dispute.
How much salary should an S corp owner take?
Reasonable compensation for the services the shareholder actually provides, set before any distributions. Where receipts come mainly from the shareholder’s own services, the IRS expects those payments as wages subject to employment taxes, and it can reclassify distributions.
Do dentists and physicians get the qualified business income deduction?
Health and law are specified service trades or businesses, so the deduction phases out with income: for 2025, between $197,300 and $247,300 of taxable income ($394,600 to $494,600 married filing jointly). Below the threshold it is allowed.
Ready when you are.
Call 504-832-1873 or send a note. We respond within one business day.
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