How is your practice set up?
Is it a C corporation, or a flow through entity, S corporation, Limited Liability, or Partnership? Or are you a sole proprietor?
If a C corporation, the reason this simple question is important, is that payments of dividends are not deductible by a corporation, but the payments of interest are deductible. Therefore, the payment of interest reduces corporate taxable income, and corporate income tax, whereas the payment of a dividend, being non deductible does not decrease corporate taxable income and does not reduce corporate income tax.
