Starting or restructuring a veterinary practice involves more than clinical know-how—it also requires strategic legal decisions that can shape the future of your business. One of the most important decisions you’ll make early on is choosing the correct legal entity for your practice.
At Mahan Law, we help veterinarians across the country evaluate, form, and structure their businesses in ways that align with their goals. Whether you’re launching a new practice, buying into an existing one, or transitioning to a new phase, the entity you choose will affect everything from taxes to liability and management structure.
Why Entity Formation Matters for Veterinary Practices
The legal entity you select determines how your practice is taxed, how liability is handled, and how profits are distributed. It also sets the foundation for future growth, partnerships, and eventual succession or sale.
Veterinarians often choose from several common business structures:
- Sole Proprietorship: Easiest to set up, but offers no liability protection. Typically not ideal for veterinary practices due to risk exposure.
- Partnership: Shared ownership between two or more individuals. Requires a detailed partnership agreement to prevent future disputes.
- Limited Liability Company (LLC): Offers liability protection and flexible taxation. A popular choice for many small to mid-sized practices.
- Professional Corporation (PC) or Professional Limited Liability Company (PLLC): Required in some states for licensed professionals like veterinarians.
- S Corporation or C Corporation: Offers different tax treatments and ownership rules. More formal structure, often used for larger or growing practices.
Choosing the wrong entity—or failing to follow required formalities—can lead to tax penalties, legal liability, and complications with partners, investors, or regulators.
Tailoring the Right Structure to Your Practice
There’s no one-size-fits-all solution. The right structure depends on your specific situation, including:
- Whether you’re practicing alone or with partners
- Your state’s veterinary licensing and professional entity laws
- Your short- and long-term business goals
- Tax planning considerations
- Risk tolerance and liability exposure
- Future plans to expand, bring on associates, or sell the practice
We work closely with veterinarians to weigh the pros and cons of each structure and help you understand how your choice will impact daily operations, regulatory compliance, and long-term planning.
What’s Included in Our Entity Formation Services
Mahan Law provides full-service legal support for forming veterinary business entities, including:
- Entity selection and strategy
- Drafting and filing organizational documents (Articles of Incorporation, Operating Agreements, etc.)
- Ensuring compliance with state veterinary board and licensing requirements
- Applying for EINs and relevant tax registrations
- Drafting customized bylaws or operating agreements
- Preparing buy-sell agreements or shareholder agreements (if applicable)
- Advising on business licenses, insurance, and liability coverage
We also assist with multi-member entities, joint ventures, and complex ownership arrangements.
Planning for Growth from Day One
The entity you choose should support your future plans, not just your current needs. Our team works with you to anticipate potential growth, changes in ownership, and succession strategies. Whether you’re planning to expand, merge with another practice, or bring in new associates, we ensure your structure is scalable and sustainable.
We also coordinate with your accountant or financial advisor to help ensure your tax strategy aligns with your legal framework, and vice versa.
Let Mahan Law Help You Build a Strong Foundation
Veterinary professionals trust Mahan Law because we understand the business of animal care, from the inside out. Our legal services are designed specifically for veterinary practice owners, which means we know what issues matter most when forming your business.
Whether you’re starting from scratch or restructuring an existing practice, we’ll help you establish a strong legal foundation so you can focus on building the practice you envision. Contact Mahan Law today for a consultation.