Business checking account

[dpmd]

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I am looking into a job I have been offered. I have the option of taking a salary guarantee for a year or just working for what I earn (with a certain percentage being paid to the main guy for the privilege of using his staff, office, and getting a certain amount of paid call). I figure I have enough savings that I can just go for it on my own but one of the issues that I am confused about is whether I actually need a business account. I will be a sole proprietor so I was wondering if I could just open a regular checking account that will be separate from the one my husband and I routinely use. I don't think I would need any of the features that a business checking account would provide (and therefore would avoid fees). I never looked into this kind of thing before because I was happy to just be an employee forever, but due to circumstances beyond my control I am thinking of trying this out so that I don't have to move. If it isn't for me then it gives me time to look at other possibilities (which is why I don't want to put a ton of money into setting things up for this option). Any thoughts would be appreciated.

 

[Stroganoff]

I was just looking into [free] business checking accounts yesterday. I might go with Navy Federal instead of a local bank for mine. Unfortunately, I think they only open membership to current Active Duty or retired, unless you're already a member or have family who are active duty/retired.

I'm no physician, but isn't liability a concern with a sole proprietorship, as in personal liability? Even if you're just trying things out for a year? There's probably enough physician contractors and business owners on this forum who could chime in if setting up a quick Corp or Professional Corp or Professional LLC is recommended for medical professionals.

 

[dpmd]

The liability thing is an issue, but the major liability I anticipate would be malpractice which I figure I would address through my malpractice insurance. I won't be taking any loans or dealing with things in a way where I would have creditors. Not sure if that is the right way to think about it, but the other guys I will be joining are sole proprietors as well and they seem fairly savvy.

 

[tartesos]

The liability thing is an issue, but the major liability I anticipate would be malpractice which I figure I would address through my malpractice insurance. I won't be taking any loans or dealing with things in a way where I would have creditors. Not sure if that is the right way to think about it, but the other guys I will be joining are sole proprietors as well and they seem fairly savvy.

If this is the first time you work, out of residency, a first year salary guarantee is a good option while you build your client base of if you don't like the place, move on.

The liability issue as a sole proprietor is if a sue comes in, they can come after all your assets, and that includes your home, cars, savings etc. where as if you have a llc or small corporation built( not as bad as it sounds 500$ or so will get it done) and you get paid through it you are only liable for the assets in that "bussiness".
This makes sense in Florida and other states with no cap on malpractice sues.
You and every md need a good lawyer.
I may be wrong in some details and e Rey state is different but independent contractor can be a blessing and a course if you are not organized and save all your receipts and keep track of all your spending. If you are, you can actually make more money that being employed because you can deduct more things and reduce your taxable income by a lot!
As employed you only deduct things up to a limit, as independent contractor you deduct 100% your expenses prior to being taxed.
( medical licenses, books, travel expenses etc. ).

Hope that helps.

 

[tartesos]

If this is the first time you work, out of residency, a first year salary guarantee is a good option while you build your client base of if you don't like the place, move on.

The liability issue as a sole proprietor is if a sue comes in, they can come after all your assets, and that includes your home, cars, savings etc. where as if you have a llc or small corporation built( not as bad as it sounds 500$ or so will get it done) and you get paid through it you are only liable for the assets in that "bussiness".
This makes sense in Florida and other states with no cap on malpractice sues.
You and every md need a good lawyer.
I may be wrong in some details and every state is different but aindependent contractor can be a blessing and a course if you are not organized and save all your receipts and keep track of all your spending. If you are, you can actually make more money than being employed because you can deduct more things and reduce your taxable income by a lot!
As employed you only deduct things up to a limit, as independent contractor you deduct 100% your expenses prior to being taxed.
( medical licenses, books, travel expenses etc. ).

Hope that helps.

iPhone autocorrection is killing my grammar there but you get the point.

 

[southerndoc]

If this is the first time you work, out of residency, a first year salary guarantee is a good option while you build your client base of if you don't like the place, move on.

The liability issue as a sole proprietor is if a sue comes in, they can come after all your assets, and that includes your home, cars, savings etc. where as if you have a llc or small corporation built( not as bad as it sounds 500$ or so will get it done) and you get paid through it you are only liable for the assets in that "bussiness".
This makes sense in Florida and other states with no cap on malpractice sues.
You and every md need a good lawyer.
I may be wrong in some details and e Rey state is different but independent contractor can be a blessing and a course if you are not organized and save all your receipts and keep track of all your spending. If you are, you can actually make more money that being employed because you can deduct more things and reduce your taxable income by a lot!
As employed you only deduct things up to a limit, as independent contractor you deduct 100% your expenses prior to being taxed.
( medical licenses, books, travel expenses etc. ).

Hope that helps.

This is misleading. An independent contractor who is self-incorporated cannot be personally held liable for business actions that lead to a lawsuit. However, the professional actions are personally liable even when performed within a self-incorporated environment.

 

[Tenesma]

always separate your business interests and get a business account through your bank.

 

[tartesos]

This is misleading. An independent contractor who is self-incorporated cannot be personally held liable for business actions that lead to a lawsuit. However, the professional actions are personally liable even when performed within a self-incorporated environment.

Whatever you say.
Not in mood for arguing.

 

[michaelrack]

I am looking into a job I have been offered. I have the option of taking a salary guarantee for a year or just working for what I earn (with a certain percentage being paid to the main guy for the privilege of using his staff, office, and getting a certain amount of paid call). I figure I have enough savings that I can just go for it on my own but one of the issues that I am confused about is whether I actually need a business account. I will be a sole proprietor so I was wondering if I could just open a regular checking account that will be separate from the one my husband and I routinely use. I don't think I would need any of the features that a business checking account would provide (and therefore would avoid fees). I never looked into this kind of thing before because I was happy to just be an employee forever, but due to circumstances beyond my control I am thinking of trying this out so that I don't have to move. .

If there is a salary guarantee, that sounds more like being an employee than an independent contractor- I would advise you to check out the IRS guidelines regarding what situations qualify as an independent contractor.

A basic business checking acct would be under $200 per year at most banks and would help keep you organized as far as expenses (license fees, etc). I would also advise you to get a business credit card.

 

[dpmd]

If there is a salary guarantee, that sounds more like being an employee than an independent contractor- I would advise you to check out the IRS guidelines regarding what situations qualify as an independent contractor.

A basic business checking acct would be under $200 per year at most banks and would help keep you organized as far as expenses (license fees, etc). I would also advise you to get a business credit card.

Have option of guarantee but am instead just setting up as private practice so I will only get whatever money I can earn by seeing patients and taking call.

I can have a separate personal account where I bank because of the type of account I have (some fancy account that usually has fees but is waived because my mortgage is with them. Was thinking of using that for my expenses and where insurance funds and checks from the hospitals will get deposited. That way things are still separate for tax time, but without having to pay extra for a "business account". Just wasn't sure about it.

 

[michaelrack]

Have option of guarantee but am instead just setting up as private practice so I will only get whatever money I can earn by seeing patients and taking call.

I can have a separate personal account where I bank because of the type of account I have (some fancy account that usually has fees but is waived because my mortgage is with them. Was thinking of using that for my expenses and where insurance funds and checks from the hospitals will get deposited. That way things are still separate for tax time, but without having to pay extra for a "business account". Just wasn't sure about it.

Not 100% sure, but a separate personal account would probably be ok if you are just going to be getting occasional payments (if someone else is billling patients for you and the insurance co/patient payments go to another account that is periodically paid to you in lump sums). I wouldn't recommend a personal account for direct payments from patients/insurance companies.

 

[Stroganoff]

Unless you need treasury management or change order (like retail/cash register businesses) services, paying monthly service fees for a business checking account is for suckas. There's still plenty of good free ones out there.