Announcement

Collapse
No announcement yet.

Independent contractor status while awaiting full time employment

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Independent contractor status while awaiting full time employment

    Hello,

    I had not thought of becoming an independent contractor before, but am asking for advice on the best way to do so, even if it is for just a couple of months.

    Background: was at a full-time job as a pediatrician in a "regular" practice for 6 months. They provided paid leave and CME, but no health insurance or 401K. Left on June 6th.

    Now, a solo practitioner wants to hire me. He wants to scale down and eventually sell the practice. But, he is being careful and will provide part-time employment "until we get to know each other" and can assess if I can bring more patients to make it worthwhile.

    Part-time = no benefits, and have a family and health insurance to pay.

    Several "after hours" clinics have spots I can work a couple of days per week, mostly 4-11 PM. Meanwhile, a local pediatrician (also solo) became fed up with the "locum companies" and needs coverage 1-2 days per week. I just paid for malpractice insurance for myself, so can start working as soon as it is ready.

    So, since I won't have the benefits of a full-time position (at least, not yet) AND will be working with different individuals/entities:

    1) I can deduct expenses necessary for work, like the malpractice insurance, mileage, and even health insurance premiums - correct?

    2) Should I look into setting up a DBA ("doing business as"), becoming a PLLC, maybe even hiring my wife, to provide is with even more benefits?

    If I do so, what would be the best way to set this up?

    I'm sure other docs ended up with 2-3 different "jobs" after transitioning from a full-time employment and simply kept it that way.

    I'm simply looking to save as much money as I can, especially since I dipped into my savings.

    3) Let's say I end up doing this for 3 months, then a single full-time employment position opens up and I take it.

    Would that affect the "independent contractor"/"PLLC" status?

    Any input would be appreciated.

  • #2


    So, since I won’t have the benefits of a full-time position (at least, not yet) AND will be working with different individuals/entities: 1) I can deduct expenses necessary for work, like the malpractice insurance, mileage, and even health insurance premiums – correct? 2) Should I look into setting up a DBA (“doing business as”), becoming a PLLC, maybe even hiring my wife, to provide is with even more benefits? If I do so, what would be the best way to set this up? I’m sure other docs ended up with 2-3 different “jobs” after transitioning from a full-time employment and simply kept it that way. I’m simply looking to save as much money as I can, especially since I dipped into my savings. 3) Let’s say I end up doing this for 3 months, then a single full-time employment position opens up and I take it. Would that affect the “independent contractor”/”PLLC” status?
    Click to expand...



    1. Yes. Recommend you look into setting up a home office. This will help cement the fact that you are driving from your place of business to contracting agencies.

    2. You are probably fine as a sole proprietor. Beyond that, you should have a serious, in-depth conversation with your CPA. If you don't have one, you should find one. As a business owner, you can save money on paying an experienced tax pro or on taxes, but not both.

    3. No, that would not affect the IC status. Some of your deductions will change, though.

    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      Thanks for the answer. What do you mean by:

      "As a business owner, you can save money on paying an experienced tax pro or on taxes, but not both."

      Comment

      Working...
      X