Can I get a hospital to higher me as a corporation?

[Eyefixer]

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Hey everyone,

I have an S corp (created for a previous private practice job) and I am about to sign a contract with a hospital. As an employee, I'll be getting a W2, so naturally I am looking for ways to reduce my tax burden. Do you think I can get the hospital to hire me as a corporation using my Corp tax ID number? Is this even advantages? I am trying to decided if I should keep or dissolve this corporation.

Thanks for your opinions!

 

[treasurefull2]

Hey everyone,

I have an S corp (created for a previous private practice job) and I am about to sign a contract with a hospital. As an employee, I'll be getting a W2, so naturally I am looking for ways to reduce my tax burden. Do you think I can get the hospital to hire me as a corporation using my Corp tax ID number? Is this even advantages? I am trying to decided if I should keep or dissolve this corporation.

Thanks for your opinions!

Well, I'm not sure this applies to your situation, but I recall working with a CRNA during my anesthesia rotation.

He said he was hired as a corporation, ie, he was his own company. It was something to the effect of "Firstname Lastname, LLC, Co...." or something like that, but you get my drift....

 

[schwab]

Hey everyone,

I have an S corp (created for a previous private practice job) and I am about to sign a contract with a hospital. As an employee, I'll be getting a W2, so naturally I am looking for ways to reduce my tax burden. Do you think I can get the hospital to hire me as a corporation using my Corp tax ID number? Is this even advantages? I am trying to decided if I should keep or dissolve this corporation.

Thanks for your opinions!

Depending on how you structure things, it could be advantageous or not. If you're hired as a contractor(S-Corp) instead of an employee (W2), you'll likely be paid a higher amount. However, you're not likely to receive any sort of benefits that would come along with a normal salary job (e.g., health insurance, malpractice insurance, 403(b) matching, structured Flex Savings Accounts, etc.) as those are expected to be provided by the corporation.

The benefits of being hired as a corporation include tax write-offs. Is your office based out of your home? Great, deduct the miles that you drive to the hospital. Home office deduction, too. Cell phone used for work? Deduct it. And so on..

If the money saved through tax deductions outweighs the extra expense (health insurance, life insurance, accountant fees, expense tracking, etc.), then it's beneficial to give it a shot. Of course, if you're married or have these benefits through another employer, it is likely well worth the effort.

As far as the question of the hospital willing to hire you as a contractor/corporation, that's up to them. Can't hurt to ask!

 

[nontrdgsbuiucmd]

concur, I've had an s-corp for the years when I ran a small firm.

I'd suggest against it due to the complexity and the time involved to fill out the forms on an ongoing basis, potential legal liability re: malpractice, paying the full 15.2% social security/medicare "contribution", re-negotiating your company's revenue package each year vs. accepting cost of living increase from the employer, etc. It may make sense if you're doing consulting work (non med) for a small business in the future, as this would help to limit your liability in case something bad happens, and you can always start an s-corp if you want to run a side business.

My suggestion would be to not do this due to time, effort, and expense, but if this is important to you I'd think it can be done.