What Type of Business Entity Is Right for Your Practice?

In Episode 3 of The Right Tack, BreezyBilling Co-Founders Paul and Jim Jonas interview Devon Liljenquist, a CPA and attorney who has advised hundreds of small business owners in the behavioral health sector. The episode focuses on a critical early decision for private practice providers: selecting the appropriate business entity structure.

Key Topics Covered

Devon analyzes the advantages and disadvantages of the most prevalent business structures—sole proprietorships, LLCs, and S-Corps—helping listeners grasp how these choices affect liability safeguards, tax obligations, payroll administration, staffing considerations, and strategic planning.

Episode Highlights

The discussion addresses several important questions practitioners face:

• Why the right business structure depends on your specific goals, income, and growth plans
• Common errors practice owners commit, such as handling entity formation independently or overlooking tax consequences
• Why an LLC formation alone may prove insufficient, and conversely, why transitioning to S-Corp status prematurely could create complications
• The significance of reasonable compensation requirements in S-Corp compliance and IRS considerations
• Practical guidance on transitioning between entity types and determining optimal timing
• How business structure influences insurance, payroll management, succession strategies, and practice valuation
• Tactics for preventing typical mistakes and maintaining compliance as practices scale

Guest Expertise

Devon brings dual expertise as both a CPA and attorney, providing a comprehensive perspective on business structure decisions for providers at all developmental stages.

The episode is accessible on major podcast platforms and directly through the BreezyBilling website. Subscribe to the Trade Winds newsletter for upcoming episode notifications.