You went to school for medicine, not taxes. We handle the complex tax and accounting challenges that come with running a medical or dental practice — so you can focus on your patients.
Physicians, dentists, and other healthcare providers in Frederick County face a set of tax and financial challenges that most general CPA firms simply aren't equipped to handle. You have high income, complex deduction opportunities, practice entity decisions, staff payroll, equipment purchases, retirement planning considerations, and — if you run your own practice — all the bookkeeping and compliance that comes with being a business owner on top of a clinician.
At Mercer Flanagan, we've been working with medical professionals in Frederick and surrounding counties for over 50 years. We know your industry. We know the deductions. We know the structures that work. And we're here year-round — not just in April.
"The average physician or dentist who isn't working with an industry-experienced CPA is likely overpaying in self-employment tax, under-contributing to retirement, and missing a handful of deductions specific to their profession. These aren't small numbers."
We work with:
These are the situations we hear about most often from new clients in the healthcare field.
Self-employed physicians and dentists pay both the employee and employer share of payroll taxes. The right entity structure — typically an S-Corp election — can dramatically reduce this exposure. Many providers are leaving significant money on the table every year by not making this move.
Operating as a sole proprietor or a standard LLC when you should be an S-Corp — or a PC when a different structure would serve you better — costs you money year after year. Entity structuring is one of the first things we evaluate for every new medical professional client.
High-earning physicians and dentists have access to retirement vehicles that allow far greater tax-deferred contributions than a standard IRA. A Solo 401(k) or defined benefit plan can shelter well over $100,000 per year in the right circumstances. Many providers aren't taking advantage of this.
CME travel and registration, malpractice insurance premiums, medical licenses and DEA registration, scrubs and clinical attire, professional association dues — these deductions are specific to your profession and are often overlooked by generalist tax preparers.
Medical professionals with 1099 income or practice income are responsible for making quarterly estimated tax payments. Getting these wrong in either direction costs you — either in penalties or in unnecessary cash tied up with the IRS all year.
If you run your own practice, clean bookkeeping isn't optional — it's the foundation of accurate tax returns, reliable financial reporting, and the ability to track profitability. We provide monthly bookkeeping and QuickBooks support for practices that need it.
How your practice is legally structured has a bigger impact on your tax bill than almost any other single decision. Here's a quick comparison of the most common structures we see medical professionals using — and what each one means for you.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor / Single-Member LLC | 15.3% on all net income | Lowest | Early-stage or very low income providers only |
| S-Corporation | Only on reasonable salary | Moderate | Most established physicians & dentists earning $80K+ net |
| Professional Corporation (PC) | Varies by election | Moderate–High | Required in some states for licensed professions |
| Partnership / Multi-Member LLC | Can be high | High | Group practices with multiple physician owners |
The right answer depends on your specific income level, how many employees you have, whether you're in a group practice, and your state licensing requirements. We analyze this for every new client. Read our S-Corp vs. LLC guide →
We evaluate your current structure, run the numbers on what an S-Corp election would save you, and handle the paperwork to make the switch if it makes sense. For many physicians and dentists earning over $80,000 in net practice income, this is the highest-return tax move available.
S-Corp vs. LLC: Which Is Right for You? →We prepare your practice's business return — Schedule C, Form 1120-S for S-Corps, or Form 1065 for partnerships — along with your personal Form 1040, including all Schedule attachments. Everything is handled under one roof with full context across both returns.
Small Business Tax Services → Individual Tax Preparation →We calculate your quarterly estimated payments based on your actual projected income and adjust throughout the year as things change. No surprise April bills. No unnecessary overpayments sitting with the IRS for months.
Tax Planning Services →We help you choose the right retirement vehicle for your situation and maximize your annual contributions. Options include:
Solo 401(k): Up to $69,000/year (2024) for solo practice owners. Excellent for high earners with no full-time employees.
SEP-IRA: Simpler to administer, allows up to 25% of compensation. Good starting point for some providers.
Defined Benefit Plan: Can shelter $200,000+ per year for older, high-income physicians. Actuarially determined and highly effective for the right situation.
SIMPLE IRA: Good for small practices with a handful of employees.
Medical and dental equipment is expensive — and the tax code gives you tools to deduct it aggressively. Section 179 allows you to deduct the full cost of qualifying equipment in the year of purchase rather than depreciating it over many years. Bonus depreciation rules may also apply. We make sure these are applied correctly and in the most advantageous way for your tax situation.
If you run your own practice, your books need to be clean, current, and organized — not just for tax purposes but so you can actually understand how your business is performing month to month. We offer ongoing monthly bookkeeping using QuickBooks and can clean up the books if they've fallen behind.
QuickBooks Support & Training →If your practice needs compiled financial statements for a bank loan, lease application, or buy-in agreement with a partner, we handle that. Clean, professionally prepared statements that lenders and partners accept.
Financial Statement Compilations →For practice owners who want more than tax prep — we offer fractional CFO support including cash flow analysis, overhead benchmarking, profitability review, and strategic planning guidance. You get a senior financial advisor without the cost of a full-time hire.
Fractional CFO Services →Many physicians and dentists own rental properties or have investment accounts alongside their practice income. We handle the full picture — rental income, depreciation, passive activity rules, capital gains planning, and coordination across all your income sources.
Tax Planning Services →These are the deductions that are specific to medical and dental professionals — the ones generalist preparers most often underutilize or miss entirely. Every situation is different, and eligibility depends on your specific circumstances, but these are worth discussing with us.
Deductibility always depends on your specific facts and circumstances. The IRS has specific rules about what qualifies, how to document it, and how to calculate it. We make sure you're capturing what you're entitled to — and that it's documented properly so it holds up if questioned.
Big firms want big corporate clients. We built our practice around the professionals, business owners, and community members who are the backbone of Frederick County. You won't be handed off to a junior associate. You won't wait three weeks for a call back. You get a CPA who knows your name and your situation.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local professionals, businesses & nonprofits
Rated by clients across Frederick County
Access to your CPA — not just during tax season
Year-round access to your CPA. Questions get answered when you have them, not weeks later.
We've worked with physicians and dentists in Frederick County for decades. We understand your profession.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your returns. We contact you when something changes that affects your tax situation.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
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