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Starting a Chiropractic Practice: What You Need to Know

Are you considering starting or purchasing a chiropractic practice?  Read on to find out what you need to know first:

What is the typical practice model?

Today, recent graduates are more likely to join a practice as an associate until they are in a more stable financial situation where they can invest in their business.  But once they have generated enough capital, many are eager to purchase or start their own practice (and some do immediately after finishing chiropractic school.)  While most chiropractic practices are sole practitioners, there are also partnerships and group practices.

How are chiropractors compensated?

Most sole chiropractors receive income comprised of the difference between top line revenue and expenses.  Top line revenue generally includes revenue from patient appointments as well as profit from retail products and ancillary services including nutritional supplements, durable medical equipment, or training classes. 

What is the best legal structure for a chiropractic practice?

Whether you operate as a sole proprietor or with a partner or group, determining the right legal structure for your practice is a critical decision.  Different types of business structures can provide protection from creditors while others provide tax advantages.  For example, a solo practice can be structured as a tax-advantageous sole proprietorship in which the owner can make business decisions without consulting business partners nor a board of directors. The sole proprietor can declare business income as personal income and business expenditures as personal expenses for tax purposes.  While these aspects of sole proprietorship are beneficial, the structure also puts the owner in a vulnerable position:  the owner will be personally liable if he or she is ever sued.

A solo practice doesn’t have to be structured as a sole proprietorship.  It can be structured as an LLC, a PLLC, an S-Corporation, a PSC, a C-Corporation, etc.  Similarly, partnerships and group practices can be formed as one of several different legal business structures.  Each structure has advantages and disadvantages.  Consequently, it is essential to take the time to determine which structure best fits your present and future needs. 

If you are considering starting a chiropractic practice, contact an experienced attorney such as ECanter Lawyers to help you determine the optimal business structure for your practice.

What are other key considerations for a new owner?

While there are many considerations for a new chiropractic office, below are a few of the most important:

• Determining an office location with the right demographics for your practice.
• If starting a new practice, then selecting the ideal real estate, evaluating contractors, and designing and coordinating a build-out.
• Determining and purchasing office equipment and systems.
• Identifying an accountant to assist with quarterly and annual taxes.
• Creating a staff by hiring highly competent individuals who match the values that represent your business.
• Developing a brand and starting to market your business through advertising, social media, web presence, press releases, and involvement with the community.
• Evaluating and selecting medical malpractice insurance.
• Creating a thorough business plan that incorporates all the aforementioned considerations as well as comprehensive financial projections.

If you are considering starting a chiropractic practice, get the advice you need first by consulting with a reputable attorney who specializes in Healthcare Law.

ECanter Lawyers

For over two decades, ECanter Lawyers has remained committed to honest, straightforward answers.  Named one of AVVO’s Clients’ Choice, ECanter Lawyers has helped clients receive multi-million-dollar verdicts, and millions of dollars in settlements.  ECanter Lawyers specializes in personal injury, motor vehicle accidents, medical malpractice, premises and product liability, and healthcare law.

With offices conveniently located throughout South Florida and 24/7 services, ECanter Lawyers personal injury law firm offers you the personalized attention that you need in order to maximize your compensation.