My wife is very soon purchasing a small medical practice with all cash and I’m trying to figure out how best to structure the purchase agreement. There is a price per active patient that also includes office equipment. Also, there will be an expected remaining accounts receivable 90 days prior to closing date amount paid at closing as well. The checking account changes ownership as well (has direct deposit from multiple insurance companies) although seller is entitled to what is in checking provided all biz expenses through closing date are paid. We will have a new checking account and put our own cash in it to cover initial operating costs gradually reimbursing that amount back to ourselves. As I understand, that is a biz expense just like we will be reimbursing ourselves what we are spending of our personal money to get the new building ready to go. From what I understand, the purchase price (price per patient including existing equipment) is simply an investment cost that we can’t reimburse ourselves back through the biz. Ok, my main question…Is there a way to structure the expected remaining 90 days accounts receivable where it isn’t necessarily considered part of the purchase price and instead a business expense? The way I see it is if we pay the seller say $50k of our after tax personal money for the remaining AR, we would basically be paying tax on it again through my wife’s paychecks. Or, is this somehow managed by taking a distribution check vs a regular paycheck? It will be structured as an S-Corp LLC btw. Pardon my very elementary understanding (or lack there of) of accounting.
Statistics: Posted by Carguy85 — Sat Nov 09, 2024 1:36 am — Replies 1 — Views 142