opening a second private practice office in a neighboring state

[FCP]

hi all,

 

I currently have a private practice in a major metro area.  I recently received my second DEA and new state licensure, with intent to open a second practice in a neighboring state (just 30 min from my current practice; the new practice is right next to the state border).  I had a few questions, for anyone that happens to know about this type of stuff:

1) do you know if I have to create a new, separate LLC for this practice since it is in a different state?

2) do i need a separate tax ID for the second practice?  I was told by my biller that I need a separate tax-id for the second practice since it is in a different state, but I figured I'd confirm with others whether this is correct, because I'd rather save myself from mundane paperwork if I can.

3) if I do need a separate LLC, does anyone have any recommendations on a lawyer or firm that could set me up with one?  I paid over $600 to create my first LLC, which I thought was a significant amount given the amount of work that was needed, so figured I'd ask.

Thanks!

[jfoxcpacfp]

FCP wrote:

I currently have a private practice in a major metro area.  I recently received my second DEA and new state licensure, with intent to open a second practice in a neighboring state (just 30 min from my current practice; the new practice is right next to the state border).  I had a few questions, for anyone that happens to know about this type of stuff:

1) do you know if I have to create a new, separate LLC for this practice since it is in a different state?

2) do i need a separate tax ID for the second practice?  I was told by my biller that I need a separate tax-id for the second practice since it is in a different state, but I figured I’d confirm with others whether this is correct, because I’d rather save myself from mundane paperwork if I can.

3) if I do need a separate LLC, does anyone have any recommendations on a lawyer or firm that could set me up with one?  I paid over $600 to create my first LLC, which I thought was a significant amount given the amount of work that was needed, so figured I’d ask.

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This is something you should be working closely with your CPA on. However:

1. Not necessary although there may be practical reasons for doing so (different tax structure in the 2nd state, possible future sale of 1 of the business, different partners in each business, etc.)


2. Not if you don't open as a separate entity. However, there may be a regulation relating to medical billing I'm not aware of. Check to see if it really is a TIN that is supposed to be separate, because this is going to cause confusion with the IRS, if so.


3. Are you the only owner? Depending upon the state, it is usually super simple to form an LLC for a single owner. Look up your Secretary of State and find out what to do. Again, this is something your CPA should be able to advise on (s/he can't file on your behalf, though, as that constitutes the practice of law).

[FCP]

I appreciate your helpful response.  I will consult further with my accountant on some of this.  Thank you.