Not legal or tax advice. Confirm the choice with a healthcare attorney and a
CPA; the right answer depends on your state and your numbers.
Layer 1: the legal wrapper (state law decides)
Licensed professionals usually can’t use a plain LLC or corporation for the practice. States push you into a PC (professional corporation) or PLLC (professional limited liability company), and some allow only one of them for physicians. California, for example, requires a professional corporation for medical practices. Ownership of the wrapper must be licensed (CPOM); non-physician builders use the MSO/PC structure, where the MSO itself is a normal LLC or corporation. One thing the wrapper never does: protect you from your own malpractice. It shields you from the business’s debts and from a partner’s malpractice, not your own. That’s what insurance is for.Layer 2: the tax treatment (you elect)
The practical pattern: form the PC or PLLC your state requires, then file
the S-corp election (Form 2553) in time (within 2 months and 15 days of
formation, or of the tax year it should start). The classic error is forming
a PC and never electing, landing in personal-service-corporation tax
treatment by accident.
The S-corp trade: you must run payroll and pay yourself a reasonable
salary (the IRS’s word) before taking distributions, which adds cost and
scrutiny. Run the math with your CPA at your expected profit.