cardiacpaParticipantStatus: Other Professional, Advanced Practice ProviderPosts: 8Joined: 01/06/2019
I’m an Physician Assistant and looking to starting doing some contract work. A hospital has asked/required me to be incorporated compared to being a sole proprietor.
Any information on why they would require this? Tax or legal implications on their end or mine?
CTS PAJanuary 6, 2019 at 1:12 pm MST #179089jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 6940Joined: 01/09/2016
No. They should not be dictating what business form you operate under – it’s really none of their business. otoh, they set the rules. Entities are not required to send 1099s to corporations so maybe that has something to do with it.
This is the first time in my career (I think) that I’ve heard of an organization requiring that a contracting entity be incorporated or they won’t hire them.
Edited to add: Implications of incorporating are great. Tax and cost of maintaining a corporation, in particular. You should discuss with an experienced CPA.
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: 1687Joined: 03/01/2018
I would inquire as to whether simply forming an LLC would satisfy their requirements.
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA