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Form an S Corp and save on your taxes

We’ll tell you when it’s the right time to form an S corporation and even file the paperwork for you.

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We’ll handle the process
for you

You’ve probably heard forming an S corporation (S corp) can save you money on your taxes for your therapy practice, but when and how to form one can be confusing. We’re here to help.

File Form 2553

We’ll file Form 2553 for you to elect your therapy practice be taxed as an S Corp by the IRS.

Determine reasonable salary

Based on your income, we’ll help you calculate a reasonable salary to pay yourself.

Set up payroll

We’ll get you set up on payroll, which you can run directly through your Heard dashboard.

Stay

compliant

and

avoid

fees

After your S corp is set up, we’ll make sure you stay compliant and avoid fees or penalties from the IRS.

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Review reasonable salary

Throughout the year, we’ll review your reasonable salary to make sure you’re paying yourself the right amount.

Review benefits

We’ll discuss retirement planning and health insurance treatment as an S corp to maximize your tax savings.

Adjust books for expenses

We’ll adjust your books for expenses and make sure they’re claimed on your tax return.
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Heard makes everything simple when it comes to tracking my finances. I love that I can manage my books and file my taxes all from one place.

Amanda Budris
PHD

Which plan is right for me?

Here are some definitions to help you determine which plan is right for you.
Your practice is a Sole Proprietorship or Single Member LLC
If you start seeing clients without forming an LLC, then you’re taxed as a sole proprietor. You have one tax return (Form 1040) which you submit with a Schedule C to report your self-employment income and expenses.

If you form an LLC, then you’re still taxed as a sole proprietor, unless you elect to be taxed as an S corporation by the IRS.
Your practice is an S Corporation
If you’re taxed as an S Corporation, then you have two tax returns. You file a business tax return (Form 1120-S) and personal tax return (Form 1040).
‍
In order to be taxed as an S corporation, you need to first form an LLC (or professional corporation in CA) and then submit Form 2553 to the IRS.
Still not sure? Book a free demo with our team and we’ll help you pick the right plan for your practice.
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Heard

is

an

all-in-one

financial

solution

for

therapists

that

combines

software

and

human

support

to

handle

bookkeeping,

taxes,

payroll,

and

more.

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Get our Tax Deduction Cheatsheet for Therapists

Use this cheatsheet to maximize your deductions and save money on taxes for your therapy practice.

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