side gig-hospice director

[treswolf]

I'm considering a side gig as a hospice director. I am currently an employed FT outpatient internist. The job as hospice director is a consultant role. Any insight or recommendations moving forward in the job negotiation would be helpful. Should I form my own company if it seems like a good fit? if so, what type (llc vs pc). Thanks.

[jacoavlu]

Most likely best just to have them pay you, to your name, no LLC or PC necessary. Assume you’ll be paid as an independent contractor, via 1099?

[Steven Podnos MD CFP]

My old medical partner does this now along with his full time medical practice.  It has worked out well.  He has been paid as both a 1099 employee and as a W2 employee.  The advantage to being a 1099 employee is more flexibility in deducting business expenses and in having a second retirement plan.

[hightower]

Interested to hear how this works.  What does the hospice director do exactly?  Is this a non-clinical role or are you seeing patients?

[spiritrider]

I would add, in case you were not thinking/not aware of it. An S-Corp for a side-gig of a W-2 employed doctor is almost certainly counter-productive.

[nolamd84]

Always document your hours. Hospice tends to be under CMS scrutiny.

[Megalops]

report the income as 1099 and open a solo 401k (or SEP IRA which is frowned upon on this site)for additional tax advantaged retirement space.

[jfoxcpacfp]

1. How much do you expect to make in the side gig? (I've seen a side gig up to $400k)


2. No LLC - the only purpose for an LLC is for liability protection. That does a doc working in his/her main profession no good until you have employees. Good malpractice insurance is your best liability protection. Doctors can't practice medicine as LLCs in CA, btw.


3. No PC, either.


4. If you're netting (after expenses) < $350k - $400k, likely just a plain old sole proprietor will be just fine.


5. Consider working with a CPA once you start - it can get complicated pretty fast, especially if you have a home office.

[jacoavlu]

Megalops wrote:

open a solo 401k (or SEP IRA which is frowned upon on this site)

Click to expand...

to be clear a SEP IRA is suboptimal because it results in pro rata taxation of backdoor Roth IRA conversions, which solo 401k contributions do not. And employer contribution limits are the same between the plan types.

[Megalops]

I agree that’s the obvious advantage, and suboptimal is the perfect way to describe it for someone who also earns employee income (and assuming they are maxing those tax advantaged plans) and is just finding more ways to save. But utilizing a sep would still put them ahead of most other physicians.

[CFEonline]

I'm considering a side gig as a hospice director. I am currently an employed FT outpatient internist. The job as hospice director is a consultant role. Any insight or recommendations moving forward in the job negotiation would be helpful. Should I form my own company if it seems like a good fit? if so, what type (llc vs pc). Thanks.

Did you pursue this and how did it work out?

[runfast00]

I have a private practice and am a hospice medical consultant on the side . With my 1099 income I have a SD401k from mysolo401k. Works great.