Recently we met with a three-partner oral surgery group, operating as a Subchapter S corporation, that was seeking our help with personal and practice tax and business planning. The doctors had a high producing practice, collecting close to $5,000,000 a year, with annual profits of close to $2,500,000, for a 50% profit margin. Each year, they calculated the profits allocable to each partner (shareholder) based on the income allocation formula they had agreed upon, and distributed all those profits in the form of salaries and bonuses. By not taking advantage of all the tax saving strategies available, they had fallen into the same trap as 75% of other group practices, and as a result, were paying more than $180,000 in unnecessary taxes.