1099 help?

[stephenpatrickd]

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Hello there,
I'm an MD working locums exclusively in MA, looking for help with setting up a corporate structure.
Appreciate any names of attorneys or cpas with relevant experience, either in this thread or private message.
Thanks!
spd

 

[chessknt]

Try WCI forums but the short version is that setting up a S corp is highly unlikely to be financially beneficial.

 

[UscGhost]

Try WCI forums but the short version is that setting up a S corp is highly unlikely to be financially beneficial.

Why would it not be financially beneficial?

The tax flexibility of an S Corp is quite significant

 

[chessknt]

Why would it not be financially beneficial?

The tax flexibility of an S Corp is quite significant

Because you get taxed more in the end regardless. You can read about it on the WCI forums but is usually not useful to physicians. There are some fringe cases where it can be but as a solo locums provider it isn't common.

 

[UscGhost]

Because you get taxed more in the end regardless. You can read about it on the WCI forums but is usually not useful to physicians. There are some fringe cases where it can be but as a solo locums provider it isn't common.

It's been discussed on these forums as well. Usually the savvy 1099 docs can take advantage of the existing tax laws to pay less taxes than the equivalent W2

 

[chessknt]

It's been discussed on these forums as well. Usually the savvy 1099 docs can take advantage of the existing tax laws to pay less taxes than the equivalent W2

Definitely but not via an s corp unless income is in the 500k plus range. It has costs associated with it and the tax savings vs plain sole prop may not offset these costs especially if the startup costs are spread over a small time period (ie stop working locums).

 

[UscGhost]

Definitely but not via an s corp unless income is in the 500k plus range. It has costs associated with it and the tax savings vs plain sole prop may not offset these costs especially if the startup costs are spread over a small time period (ie stop working locums).

Gotcha
I was assuming he was making a FT level income. I don't have experience with the lower income ranges and S corp

 

[BobBarker]

He’s planning on making more than $500k 1099.