You went to school for medicine, not taxes. We handle the entity structure, equipment deductions, and retirement planning that come with running a veterinary practice — so you can focus on your patients.
Veterinarians face a tax picture most generalist preparers don't fully understand: expensive diagnostic and surgical equipment that can be deducted aggressively if structured correctly, staff payroll for vet techs and support staff, and an entity decision that affects every dollar of self-employment tax you pay.
At Mercer Flanagan, we've worked with veterinary practices in Frederick and surrounding counties for over 50 years. We know the deductions specific to your field. We know the entity structures that work. And we're here year-round — not just in April.
"The average veterinary practice owner who isn't working with an industry-experienced CPA is likely overpaying in self-employment tax and under-utilizing the equipment deductions available to them. These aren't small numbers when you're buying diagnostic or surgical equipment every few years."
We work with:
These are the situations we hear about most often from new veterinary clients.
Many veterinary practice owners are still operating as a sole proprietor or standard LLC well past the point where an S-Corp election would meaningfully reduce self-employment tax. This is one of the first things we evaluate for every new client.
Diagnostic equipment, surgical tools, and imaging systems are expensive — and Section 179 plus bonus depreciation rules let you deduct much of that cost in the year of purchase. Many practices aren't applying this as aggressively as they could.
Practice owners have access to retirement vehicles that allow far greater tax-deferred contributions than a standard IRA. A Solo 401(k) or SEP-IRA can shelter significantly more per year in the right circumstances.
Payroll for hourly clinical staff — including overtime rules — needs to be set up correctly from day one to avoid costly corrections later.
Practice owners with variable income are responsible for 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 is the foundation of accurate tax returns and the ability to see true profitability by service line. 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 veterinary practice owners using.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor / Single-Member LLC | 15.3% on all net income | Lowest | New or very early-stage practice owners |
| S-Corporation | Only on reasonable salary | Moderate | Established practices earning $80K+ net |
| Professional Corporation (PC) | Varies by election | Moderate–High | Required in some states for licensed veterinarians |
| Partnership / Multi-Member LLC | Can be high | High | Group practices with multiple owners |
The right answer depends on your income level, employees, and 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 practices earning over $80,000 in net 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 →Diagnostic, surgical, and imaging equipment is expensive — Section 179 and bonus depreciation rules let you deduct much of that cost in the year of purchase rather than depreciating it over many years. We make sure these are applied correctly and in the most advantageous way for your tax situation.
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 — whether that's a Solo 401(k), SEP-IRA, or SIMPLE IRA depending on your practice's size and staffing.
We help set up payroll correctly from day one for clinical and support staff, including proper handling of overtime rules for hourly employees.
If you run your own practice, your books need to be clean, current, and organized — not just for tax purposes but so you can see profitability by service line. 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 partner buy-in agreement, we handle that. Clean, professionally prepared statements that lenders and partners accept.
Financial Statement Compilations →These are the deductions that are specific to veterinary 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 veterinarians and professionals 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 understand the equipment costs, staffing, and entity decisions specific to running a practice.
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.
Book a Free Consultation