Entity and MSO structure with a medical director, inventory and equipment timing, retail versus service income, and multi-location growth.
A med spa grows faster than its structure. The first location is often an LLC with a medical director agreement bolted on, injectables bought on a card and expensed, lasers financed through the vendor, and a second location opened before anyone asked how the entities should relate.
The tax plan follows the operating structure. The management services organization and the professional entity have to satisfy the corporate practice of medicine rules in your state before they can be optimized for tax. Devices and buildouts are timed under section 179 and bonus depreciation. Injectable and skincare inventory is accounted for, not expensed. Retail, service and membership income are tracked separately. And the owner’s compensation, retirement plan and the eventual sale to a consolidator are modeled years ahead.
We work with your healthcare attorney and bookkeeper, review the entity chart and three years of returns, and write the plan with a calendar for purchases, contributions and the next opening.
What we typically see: An entity chart that would not survive a medical board question. Inventory expensed on purchase. Devices financed at the vendor's pace. A second location opened inside the first one's entity.
Each one is modeled against your numbers and written into the blueprint with the documentation it needs.
Two locations, one LLC, and injectables expensed the day they arrived. The restructure was the first time the numbers matched the business.
In most states a non-physician owner needs a management services organization alongside a physician-owned professional entity. The tax plan is built on whatever structure your healthcare attorney confirms.
Product held for resale or use in services is inventory, so what is on the shelf at year end is not deducted yet. Tracking it correctly avoids an adjustment on examination.
It depends on the device, the term and the year's income. Bought equipment can be expensed under section 179; a lease spreads the deduction. The model compares both.
Usually in its own entity under the same management structure, with intercompany agreements in place before it opens. It is far easier to set up than to unwind.
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