If you are considering an LLC for your chiropractic practice and you are working on the financial spreadsheets for your business plan, you may be wondering how to show the LLC.  Actually, it is pretty easy, if you use the Planning for Practice Success worksheets (you get these worksheets automatically when you purchase Planning for Practice Success. 

Here’s how it works:

When you set up your LLC, you become a Member, which is kind of like being a partner in a partnership.  You decide how much money you need each month for personal expenses (your “draw”) and you take out that amount from the business checking account and put it in your personal checking account.  You don’t need to be an employee unless your CPA or tax advisor says you should. 

At the end of the year, you are taxed on the profit of the LLC.  If you are a single member LLC., the profit goes on your personal income tax return (line 12 of Form 1040) and gets taxed along with your other income.

If your LLC has several Members, it is taxed like a partnership and profits are divided among the Members to go on their personal income tax returns.

That’s it.  So basically being an LLC doesn’t change anything on the financial spreadsheets you’re preparing as part of your business plan.