How to set up your new business (locums, side gig, etc.)

[jfoxcpacfp]

If you have a side gig or you're working strictly as an IC (hospitalist, locums, for example) and have questions about how to get started, I wrote this post for you. Even if you don't want to totally DIY, it wouldn't hurt you to know the basics before you call a CPA for advice. After all, you should at least be aware if you know more than the professional.

[The White Coat Investor]

It's really easy if you have no employees and will just be a sole proprietor.

• Figure out who's paying the malpractice.


• Collect check.


• Deposit check.


• Get an EIN in 5 minutes for free online if you want a solo 401(k).


• Buy benefits if you don't have someone else (an employed gig or a spouse's job) providing them.

The tricky stuff all comes in with your first employee.

[Hank]

Not so tricky if your first employee is your spouse.  Quite a bit trickier with your first non-spouse employee.

Don't get too cute and call someone who should be an employee a 1099 contractor.

A good HR manual and a payroll company like Sure Payroll can help a little with that first non-family member employee.  (We didn't care for Paychex and ADP.)  Still plenty of challenges and potential problems with employees who aren't family.