Tax advantages are a major reason to establish a group practice as a general partnership of multiple corporations, as opposed to a single corporation. These advantages are most significant in relation to future buy-outs or buy-ins. However, there are current tax benefits too, mostly relating to the partners’ ability to choose their own solutions to tax questions without requiring approval from, or even notification of, the other partners. See the following pages, “C vs. S Corporation,” “Corporation vs. Partnership” and “Corporation vs. LLC” for details.
