I have a full time W2 position and was thinking of getting a side gig doing prn locums anesthesia on days off, vacations, etc. One particular place wants me to have an entity to do so. Any attending have experience with creating their own llc to do locums or prn anesthesia jobs ? Did you file the paperwork yourself?
Any one have their own LLC?
- Thread starter Tee Cell
- Start date
- Joined
- May 28, 2008
- Messages
- 2,524
- Reaction score
- 3,135
Easy to do....do it in a state like Delaware. Have someone do it for you and save yourself the headache.
- Joined
- Oct 21, 2007
- Messages
- 1,226
- Reaction score
- 1,119
An LLC will offer you almost no legal protection at all. You probably know this already. You will need to get a Federal I.D. number and you will need to tell the IRS how to tax you. For tax purposes you will probably want the LLC to be a disregarded entity and the income of the LLC will be reported on Schedule C of your 1040. This will generate Medicare tax on the net earnings in your LLC but you won't have to file a corporate return. It will also allow you to deduct all of the expenses associated with the side gig.
- Joined
- Jun 23, 2007
- Messages
- 3,850
- Reaction score
- 1,279
What would be the benefit to them? Why do they want you to have one?
Keep in mind if you open an LLC, specially in another State, your tax returns start getting more complicated.
Is it worth it to open an LLC for a few days of work a year?
- Joined
- May 3, 2005
- Messages
- 4,256
- Reaction score
- 2,315
A LLC does offer legal protection for personal assets but not against malpractice suits. I have my own LLC set up in Florida for locums anesthesia assignments. There is some additional paperwork involved and some additional tax forms, but it is nothing a person cannot handle without an accountant. My LLC costs $138 a year in filing fees for state annual report. There are no other costs involved in my LLC. You can set up a LLC as a domestic entity in almost any state where you reside without going through the trouble of paying for foreign entity registration as in Delaware. Avoid a corporation or LLP when at all possible since these are far more expensive and involve cumbersome paperwork.
- Joined
- Dec 12, 2009
- Messages
- 14
- Reaction score
- 7
Does having an LLC allow you to open an additional 401k or save more income pretax for retirement?
- Joined
- May 3, 2005
- Messages
- 4,256
- Reaction score
- 2,315
If you are not a plebeian, you can set up a LLC yourself in 10 minutes online on the Secretary of State site from your state, get a Federal Tax EIN in another 5 minutes, and set up a 401K in 30 minutes. The key is to be the only employee of the company- i.e. you may not hire any other employees otherwise they are eligible for the same 401K profit sharing as you are. If you have a spouse, she can be listed as an employee, but must contribute to the company in an active manner in order to receive the profit sharing. For you as a solo employee of a LLC, a 401K allows contributions with you as an employee and with you as an employer. The employee contributions are limited to $19K per year or if you are over age 50, $25K/year. The employer contributions are limited by income, with effectively up to 20% of income being eligible up to a maximum combined contribution to all 401K plans maxing out around $60K per year. This includes W2 employment 401Ks. Unless you have over $250K in a single 401K, you do not have to file form 5500 with the IRS each year (this form is indeed a mess).
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,660
Easy. Just get a reputable accountant (that deals with physicians) to set it up for you.
That’s what I did for 6 years.
Turned out to be a great way to do run my business.
Not sure how taxes have changed since I set up my LLC back in 2008, but it was immensely tax efficient at the time.
At least consult with a CPA and ask all the questions you want. May even set up a defined benefit plan if that is something you’re looking at.
I might get back into an LLC in a few years if I transition into a locums only gig.
That’s what I did for 6 years.
Turned out to be a great way to do run my business.
Not sure how taxes have changed since I set up my LLC back in 2008, but it was immensely tax efficient at the time.
At least consult with a CPA and ask all the questions you want. May even set up a defined benefit plan if that is something you’re looking at.
I might get back into an LLC in a few years if I transition into a locums only gig.
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,660
Sevoflurane anesthesia associates dissolved about 5 years ago.
A lot to be learned running your own business... and a good exercise to go through.
A lot to be learned running your own business... and a good exercise to go through.
Not entirely sure but I believe you’ll be able to open a separate solo 401k or Sep IRA
- Joined
- Jan 19, 2005
- Messages
- 2,698
- Reaction score
- 2,382
Do you need to have an LLC to open a solo 401k? I thought anyone with 1099 income could open one, with contribution restrictions based on how much income. I have about $45k of 1099 so far this year, so I was thinking of opening one and dumping most if it in there, as I won't otherwise have any retirement contributions for 2019 (left old job early on, new job doesn't grant profit sharing to those on the one year partner track).
D
deleted162650
That’s correct. No LLC needed. Not sure if solo 401k or SEP-IRA is your option though.
- Joined
- Oct 31, 2008
- Messages
- 1,784
- Reaction score
- 3,669
solo 401k is always the answer. SEP IRA precludes your ability to do backdoor roth IRA
