Front Matter

Chapter 23 The Business of Canine Rehabilitation 565

Disadvantages

● All services must be marketed to the veteri-
nary community and public to generate
business
● All costs of doing business must be covered
by the income generated from rehabilitation
● There may be spaces that are required but
not always used, resulting in inefficiency
(e.g., kennels).

Rehabilitation department within
a veterinary hospital

Advantages

● Existing reception staff, waiting areas, and
kennels can be shared with other services
● Potential in‐house referral system is in place
● In‐patient rehabilitation can be offered
● Rehabilitation can be started immediately
postoperatively, prior to discharge of the
patient
● Rehabilitation sessions can be built into the
cost of surgery.

Disadvantages

● Outside referrals may be more difficult to
obtain
● Patients may be fearful due to previous
experiences, smells, and other animals cry-
ing/barking in this facility
● May have insufficient space for rehabilita-
tion treatment areas and large equipment
such as an underwater treadmill, and may
need to renovate flooring/electrical system
to accommodate
● Rehabilitation services must be promoted
throughout the hospital to assure a culture
of in‐house referral
● Hospital renovations may result in down-
sizing of rehabilitation department if
income does not meet expectations.

Business structure

How the business is structured financially is the
next factor to consider. The business’s financial
structure is based upon details such as whether
there are partners, tax benefits that might be

available, and the risks and liabilities that

would be assumed based on the type of struc-

ture. A good small business attorney and

accountant can help with choosing the best

financial structure. There are many websites

that provide excellent information on how to

structure a business, including Entrepreneur.

com, Incorporate.com, SBA.gov, and IRS.gov.

Helpful book titles include Legal Guide for

Starting and Running a Small Business (Steingold,

2017) and The Small Business Start‐Up Kit

(Pakroo, 2003).

Sole proprietorship

A sole proprietorship is an unincorporated

business with no partners. There are several

reasons a therapist might choose this struc-

ture. One is that it is the least expensive and

easiest to form and organize. The sole proprie-

tor has complete control. All income generated

is the proprietor’s to reinvest or keep, and, if

need be, a sole proprietorship is simple to dis-

solve. However, with a sole proprietorship the

owner is responsible for all debts of the busi-

ness and is personally liable, putting their

own assets at risk. It can be difficult to raise

funds when there are no shares of the busi-

ness to sell or with which to attract long‐term

employees.

Limited liability corporation (LLC)

This business structure is often used to limit

the owner’s personal liability risk. There is

less organizational paperwork required to set

up an LLC as compared with a corporation.

Further, there is the benefit of pass‐through

taxes, in which profits from the business flow

directly through the owner’s personal tax

returns; the business does not file a com-

pletely separate tax return. Earnings in an

LLC are usually subject to self‐employment

tax. Those choosing to create an LLC must

make sure to check state laws for limits in the

life of an LLC. For example, in some states,

the LLC has to be dissolved if a member leaves

the LLC. An LLC may be challenging to sell

unless converted to a corporation, which can

be difficult.