LLC for per diem/part-time retail pharmacist

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khydroxide

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Hello,

I am thinking about opening an LLC to work on a per-diem basis. Ive been in both retail and independent settings and i realized i don't like being locked to a set schedule. I would prefer to make my own schedule and be flexible..basically work when i want. Have you heard of anyone doing this ? I hear some consultant pharmacists set up LLC's but that's usually in a different setting( nursing homes etc). I'm slightly concerned about the legal side of things. I don't even know if it's legal for a pharmacy consultant to work in the capacity of a staff pharmacist but I haven't heard that it was illegal either. If anyone has any insight please share. Thanks.

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What do you gain? Given the cheapness of liability insurance, I don't see the advantage in creating an LLC. Is there something I'm missing?
 
What do you gain? Given the cheapness of liability insurance, I don't see the advantage in creating an LLC. Is there something I'm missing?

Yes, 1099 income, passthrough income for taxation, personal asset shielding, and business expenses.

This is almost certainly in your local library. I'd take a couple of weekends and read the NOLO manuals if you don't know your state really well in this matter. It'll save you quite a bit of money to understand what you're getting into.

You need to look at your state law though as pharmacists are barred from forming LLCs for pharmacist specific business in several states.

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Yes, 1099 income, passthrough income for taxation, personal asset shielding, and business expenses.

This is almost certainly in your local library. I'd take a couple of weekends and read the NOLO manuals if you don't know your state really well in this matter. It'll save you quite a bit of money to understand what you're getting into.

You need to look at your state law though as pharmacists are barred from forming LLCs for pharmacist specific business in several states.

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wow i did not realize that there were laws against that. Probably should look into that. By any chance do you know if NY is one of those states ?
 
wow i did not realize that there were laws against that. Probably should look into that. By any chance do you know if NY is one of those states ?

NY is one of the very few states that not only allows professional services LLCs, but specifically defends them from unlicensed.


Article 12. - Pharmacy is in the protected list, you must be a pharmacist in current licensure in the state of NY to form one, and an LLC that lacks such a professional person is automatically dissolved under Article 12 (so meaning, if this is a Pharmacist Professional LLC, there must be always a pharmacist there or the LLC automatically dissolves). Yeah, quite a few independent pharmacies in NY are owned by LLC pharmacists, it's a well-understood structure.

In California, you are NOT allowed to form an LLC, it is specifically illegal. I ran into that when trying to do a tax local entity for some contracting I needed to do, but was stymied by that. You have to form a full corporation, and it is specifically a Professional Corporation.

Clause E.
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NY is one of the very few states that not only allows professional services LLCs, but specifically defends them from unlicensed.


Article 12. - Pharmacy is in the protected list, you must be a pharmacist in current licensure in the state of NY to form one, and an LLC that lacks such a professional person is automatically dissolved under Article 12 (so meaning, if this is a Pharmacist Professional LLC, there must be always a pharmacist there or the LLC automatically dissolves). Yeah, quite a few independent pharmacies in NY are owned by LLC pharmacists, it's a well-understood structure.

In California, you are NOT allowed to form an LLC, it is specifically illegal. I ran into that when trying to do a tax local entity for some contracting I needed to do, but was stymied by that. You have to form a full corporation, and it is specifically a Professional Corporation.

Clause E.
.

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My spouse has some 1099 income.... not a ton, but like 60k per year as a contract MD for a side gig.

Do we qualify for the pass through income? My spouse makes significantly more than that from his w2 gig


You potentially do and can take 20% off the top right now depending on how the practice is structured. That passthrough reduction is fairly huge, it's about $18k per $100k even with AMT due to TCJA. This is why you have a tax lawyer (not just accountant) for professional practice incomes >$210 for those matters if you're not just a W2 employee. It's why I actually restructured part of my side business to deal with that so I could get the extra 20%. Thank you, Republicans and Wall Street Democrats.
 
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