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side gig-hospice director

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  • Avatar treswolf 
    Participant
    Status: Physician
    Posts: 29
    Joined: 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.

    LB3

    #220866 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2377
    Joined: 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/6cZKVA

    #220899 Reply
    Liked by spiritrider, Peds
    Avatar Steven Podnos MD CFP 
    Participant
    Status: Physician, Financial Advisor
    Posts: 168
    Joined: 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.

    #220950 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1485
    Joined: 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?

    #220953 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1904
    Joined: 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.

    #220966 Reply
    Avatar nolamd84 
    Participant
    Status: Physician
    Posts: 86
    Joined: 01/08/2016

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

    #221005 Reply
    Avatar Megalops 
    Participant
    Status: Physician
    Posts: 30
    Joined: 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.

    #221033 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8128
    Joined: 01/09/2016
    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.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #221046 Reply
    Liked by spiritrider
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2377
    Joined: 03/01/2018
    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.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #221050 Reply
    Avatar Megalops 
    Participant
    Status: Physician
    Posts: 30
    Joined: 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.

    #221122 Reply

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