Business / Medicare Questions

[4Eyes]

Okay, first a little background information. I graduated in May. I'm working at an established private practice as a 1099 contract worker part-time, gradually building up my hours there until it can become my full-time place of work. The ultimate goal is to buy into the practice (it is incorporated). In the meantime, while that is still just a few hours a week, I am working in a retail location part-time to pay the bills.

Right now, I am working as a sole proprietor. This makes me extremely nervous, though it is temporary. So I've thought about making an LLC just in my name, but I was wondering what kind of input you all might have on this. Assuming an LLC is the best route, what is the best way of going about getting one?

This leads to all kinds of follow-up questions. If I start an LLC, I will need to make a business bank account. I don't know how to decide what money would go in that bank account though. For example, what I'll be making at the private practice just seems like "regular" paycheck...something I would normally put in my personal bank account. I don't have a lot of business expenses, either. Just things like drops, mydriatic specs, etc. for the retail location. So is it logical to put everything into a business account then "pay myself" once or twice a month? I have no idea what or how much is normal. We had a whole semester course on business models and starting a practice, but it was really only applicable to those who can and want to start a practice cold (not many). So I am really clueless on these matters.

Okay, now for my somewhat-related Medicare question. I have been working on the credentialing paperwork for a while (headache), and I really need to finish it up. I guess now it's pending depending on what I decide for business model and bank account. Right now, all I could do is have Medicare payments deposited into my personal bank account...which seems really weird...regardless of whether I'm a sole proprietor or LLC or whatever.... For the private practice, I'm reassigning the benefits, but payment for the Medicare pts I'll see at the retail place will go to me.

If you have any thoughts or experiences you think might be helpful, I'd really appreciate it.

Sorry for the novel. Thanks in advance for your help.

---

Members don't see this ad.

 

[KHE]

Okay, first a little background information. I graduated in May. I'm working at an established private practice as a 1099 contract worker part-time, gradually building up my hours there until it can become my full-time place of work. The ultimate goal is to buy into the practice (it is incorporated). In the meantime, while that is still just a few hours a week, I am working in a retail location part-time to pay the bills.

Right now, I am working as a sole proprietor. This makes me extremely nervous, though it is temporary. So I've thought about making an LLC just in my name, but I was wondering what kind of input you all might have on this. Assuming an LLC is the best route, what is the best way of going about getting one?

This leads to all kinds of follow-up questions. If I start an LLC, I will need to make a business bank account. I don't know how to decide what money would go in that bank account though. For example, what I'll be making at the private practice just seems like "regular" paycheck...something I would normally put in my personal bank account. I don't have a lot of business expenses, either. Just things like drops, mydriatic specs, etc. for the retail location. So is it logical to put everything into a business account then "pay myself" once or twice a month? I have no idea what or how much is normal. We had a whole semester course on business models and starting a practice, but it was really only applicable to those who can and want to start a practice cold (not many). So I am really clueless on these matters.

Okay, now for my somewhat-related Medicare question. I have been working on the credentialing paperwork for a while (headache), and I really need to finish it up. I guess now it's pending depending on what I decide for business model and bank account. Right now, all I could do is have Medicare payments deposited into my personal bank account...which seems really weird...regardless of whether I'm a sole proprietor or LLC or whatever.... For the private practice, I'm reassigning the benefits, but payment for the Medicare pts I'll see at the retail place will go to me.

If you have any thoughts or experiences you think might be helpful, I'd really appreciate it.

Sorry for the novel. Thanks in advance for your help.

Really, you need to see a good CPA to evaluate your situation and determine if an LLC is the right corporate structure for you.

Unfortunately, medicare as an absolute freaking nightmare with respect to that. Your decision on LLC vs sole propriotor is going to directly affect your paperwork with medicare. As such, start with that first, and THEN do the medicare.

 

[4Eyes]

Thanks so much for your advice, KHE.

That makes a lot of sense. I'm just feeling kind of under the gun since the private practice really wants me on Medicare, and it's not the most expeditious process ever....

I don't think I can afford a CPA until I've been working a while.

Since I need to do something, what I'm contemplating now is just doing Medicare for the private practice first...that way I'm reassigning all the payments and it's not so convoluted. Then in the next few months I can figure out the best business model. If it seems like it'd be beneficial, I can add the other later (if I'm even at the retail place by then). Would that be an even bigger headache? I just sent the last OD an email asking how many Medicare pts she actually saw there. I've only been there a few days, and I've been plenty busy even though I'm not on their main vision plan yet...but maybe it's just a fluke.

 

[KHE]

Thanks so much for your advice, KHE.

That makes a lot of sense. I'm just feeling kind of under the gun since the private practice really wants me on Medicare, and it's not the most expeditious process ever....

I don't think I can afford a CPA until I've been working a while.

Since I need to do something, what I'm contemplating now is just doing Medicare for the private practice first...that way I'm reassigning all the payments and it's not so convoluted. Then in the next few months I can figure out the best business model. If it seems like it'd be beneficial, I can add the other later (if I'm even at the retail place by then). Would that be an even bigger headache? I just sent the last OD an email asking how many Medicare pts she actually saw there. I've only been there a few days, and I've been plenty busy even though I'm not on their main vision plan yet...but maybe it's just a fluke.

You can't afford to NOT have a CPA. Most of them charge only a couple of hundred bucks an hour. Spend an hour with one, put it on VISA if you have to and get that advice that you need. What you do initially will have an impact on your future so do it right the first time.

Technically, you can't be on medicare at the private practice and not on medicare in your commercial location. You're either on medicare or you're not. In fact, I have run into trouble in the past when I was first of school with that exact scenario.

Probably in your case, it's easiest to just bill under your employers provider number, particularly if you're not there a lot and get your own number for the commercial location.

 

[horselover]

I am not a CPA but have worked with hundreds of doctors throughout the many 30 years in business and know that you can structure either a Sole Proprietorship or an LLC to your favor in writing off many expenses. A CPA will have definitive answers for you.

Regarding a private practice, in order to get financing to either buy an existing practice or set-up a new one, most likely is going to require two years in business. We can certainly help you with this.

However, we would suggest buying a practice especially if you are desiring to practice in a metro area. Another area of expertise.

Let me know if I can help

 

[eyestrain]

Regarding a private practice, in order to get financing to either buy an existing practice or set-up a new one, most likely is going to require two years in business. We can certainly help you with this.

Huh? I got financing for a new practice before I was even out of school.

 

[4Eyes]

I got an LLC set up some time ago. I'm not looking to finance anything right now, but like eyestrain said, it's totally possible for new ODs to get loans right out of the gate.

...was that soliciting...?