Practice Entity Structuring for Doctors
The legal and tax structure of your practice affects everything from liability protection to how income is taxed. Choosing between a sole trader, partnership, trust, or company structure is one of the most consequential decisions a doctor will make when starting or restructuring a practice.
Comparing Common Structures
- Sole Trader: Simple, but offers no asset protection and limited income-splitting
- Partnership: Common for multi-doctor practices, with shared costs and liability
- Trust / Service Entity: Can separate clinical income from practice operating costs, subject to PSI rules
- Company: May suit larger practices, but is constrained where PSI rules apply to clinical income
How We Help You Decide
We review your registration requirements, revenue level, and long-term goals before recommending a structure. Because PSI rules restrict how clinical income can be split or retained in a company or trust, the right structure depends heavily on whether you meet the PSI personal services business tests.
Related Resources
- Back to Accounting and Tax Services for Doctors
- PSI Rules for Doctors and Medical Professionals
- Tax Planning for Physicians
- Accounting & Tax for Multi-Doctor Medical Practices
- Commercial Property as a Medical Centre
Restructuring isn’t just a legal exercise — it’s a tax strategy. Talk to our team before you set up a new entity or change how your practice income flows.