treswolfParticipantStatus: PhysicianPosts: 29Joined: 02/23/2017
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.
LB3June 10, 2019 at 6:49 pm MST #220866jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 1998Joined: 03/01/2018
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?
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVASteven Podnos MD CFPParticipantStatus: Physician, Financial AdvisorPosts: 134Joined: 09/21/2017
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.June 11, 2019 at 6:57 am MST #220950hightowerParticipantStatus: PhysicianPosts: 1424Joined: 12/07/2016
Interested to hear how this works. What does the hospice director do exactly? Is this a non-clinical role or are you seeing patients?June 11, 2019 at 7:05 am MST #220953spiritriderParticipantStatus: Small Business OwnerPosts: 1750Joined: 02/01/2016
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.June 11, 2019 at 7:20 am MST #220966nolamd84ParticipantStatus: PhysicianPosts: 81Joined: 01/08/2016
Always document your hours. Hospice tends to be under CMS scrutiny.June 11, 2019 at 9:18 am MST #221005MegalopsParticipantStatus: PhysicianPosts: 27Joined: 02/05/2016
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.June 11, 2019 at 11:52 am MST #221033jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 7523Joined: 01/09/2016
- How much do you expect to make in the side gig? (I’ve seen a side gig up to $400k)
- 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.
- No PC, either.
- If you’re netting (after expenses) < $350k – $400k, likely just a plain old sole proprietor will be just fine.
- Consider working with a CPA once you start – it can get complicated pretty fast, especially if you have a home office.
Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
https://fox-cpas.com/for-doctors-only/jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 1998Joined: 03/01/2018open 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.
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAMegalopsParticipantStatus: PhysicianPosts: 27Joined: 02/05/2016
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.June 11, 2019 at 6:08 pm MST #221122