Winding Down Your Corporation
As a doctor you have built a community of patients and staff. When it is time to close one chapter and open another there are many decisions to make. Winding down a medical practice is an enormous task and governmental regulations make it a fairly involved transition. If you are considering winding down a practice, here are some of the key steps to consider.
1. Will you sell your practice or wind it down
There are tax advantages for dissolving a corporation versus converting your corporation to a holding company. The latter allows for a gradual income draw plan for tax-effective distributions to heirs or charities.
2. Consult your insurance carrier
A malpractice insurance provider can advise you how many days in advance to notify your patients and advise about tail end coverage. Your carrier can instruct on how long to retain patient records, where the electronic medical record (EMR) will be retained and who responds to requests.
3. Notify your patients
Inform your patients in writing of your intent and inform where their records will be kept and who to contact for copies.
4. Inform your staff
Let them know your plans whether you are stopping business entirely or selling the practice to another physician. Employment law matters must be considered in regard to benefit plans, retirement funds, etc.
5. Prepare for the emotional transition
You have made an intense emotional investment in your practice and leaving it behind will bring a range of mixed emotions: happiness, anxiety, sadness. This is normal as is the case with any major life change.
6. Plan the next steps
Your financial picture will be different after winding down your practice and Rosen Group Private Wealth Management is here to help you reassess your new wealth management goals.