pharmacy consulting LLC

[Muse600]

I've heard of people becoming "pharmacy consultants" and starting an LLC

Some have mentioned that this allows a variety of tax benefits

has anyone done this?

If so, what exactly do you do as a consultant?

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[BMBiology]

Be cautious on the tax benefits. If your consultant is not profitable in 3 out 5 years then the IRS may classify your consultant as a "hobby" and you would lose the tax benefits.

http://taxes.about.com/od/taxplanning/a/loss_strategies.htm

 

[All4MyDaughter]

I've heard of people becoming "pharmacy consultants" and starting an LLC

Some have mentioned that this allows a variety of tax benefits

has anyone done this?

If so, what exactly do you do as a consultant?

I have an LLC. There are tax benefits and things I can deduct that I wouldn't be able to without the business. I used to have a large MTM contract. Now I have one management consulting contract that provides about 10K/year of extra income. There are other opportunities out there, for relief work, for MTM, etc. but I haven't pursued them because I'm pretty busy with FT job and PT teaching job plus my kids.

 

[All4MyDaughter]

confetti has some great posts about this in other threads.

 

[confettiflyer]

Really you establish an LLC for liability purposes and not tax benefits since it's a pass-through entity.

A person retains the same tax "advantages" working as a sole proprietor vs. starting an LLC.

As for what BMBiology mentioned about the 3 of 5 rule...it's not an absolute black and white rule. An LLC (or S/C corp) bolsters the argument a business is a venture in pursuit of profit and not someone's basement hobby. As a consultancy, the expenses you incur shouldn't be as high as, say, a bakery or another brick and mortar store.

Case in point, Virgin America, in its 6 years of existence, has only been profitable for 2-3 quarters.

In pharmacy independent consulting, the name of the game is liability protection. Even having an LLC won't keep you from getting sued as an individual. So the best protection you can afford yourself is 1) LLC + 2) ample liability insurance of the correct kind + 3) retain a local and specialized attorney to review and revise your contracts to make them litigation-resistant.

 

[deleted264072]

I have an LLC. There are tax benefits and things I can deduct that I wouldn't be able to without the business. I used to have a large MTM contract. Now I have one management consulting contract that provides about 10K/year of extra income. There are other opportunities out there, for relief work, for MTM, etc. but I haven't pursued them because I'm pretty busy with FT job and PT teaching job plus my kids.

 

[TLAD123]

I have an LLC. There are tax benefits and things I can deduct that I wouldn't be able to without the business. I used to have a large MTM contract. Now I have one management consulting contract that provides about 10K/year of extra income. There are other opportunities out there, for relief work, for MTM, etc. but I haven't pursued them because I'm pretty busy with FT job and PT teaching job plus my kids.

So, should one establish an LLC if one desires to moonlight or work per diem? Or am I completely on the wrong track? What exactly does it mean to be a "pharmacy consultant"? (potentially naïve question - I've neither heard this explained nor actually took the time to look it up)


Edit: The all reliable wiki has this as their only explanation:

"In the US, a consultant pharmacist focuses on reviewing and managing the medication regimens of patients, particularly those in institutional settings such as nursing homes. Consultant pharmacists ensure their patients’ medications are appropriate, effective, as safe as possible and used correctly; and identify, resolve, and prevent medication-related problems that may interfere with the goals of therapy."


So does one go to an entity and offer their service to review medications (as in above example, go to local nursing home and offer to review patient profiles and make recommendations)?