What type of business should we form? Medical group owned by 2 doctors that want to add more over time underneath them.

An LLC is the least expensive to open, operate and manage. An LLC offers pass-through taxation, which means taxes are not paid at the business level. If you choose to become an LLC, income/loss would be reported on your personal tax return. Corporations have a set management structure where directors oversee the major business decisions and officers are responsible for the day-to-day running of the business. LLCs do not have the same formal management structure.  However, a corporation offers tax advantages as well. The "S corporation advantage," allows business owners to use business losses — like those incurred during the startup phase — on their personal tax returns as deductions. C- corps are often the preferred incorporation choice of developing businesses. Owners can hold different types of stock interests (including preferred and common stock), which allow for different levels of dividends. This is one reason why venture capitalists choose C corporations when they offer funding to a business. Investors are attracted to the prospect of dividends (often higher dividends) if the corporation makes a profit.  But for simple basic protection of your personal assetts, an LLC will do just fine.