Tax question-LLC, EIN, etc.

[EPPP123]

I currently work at a group private practice.

I have recently created an LLC for my someday future private practice. I have yet to file my S corp paperwork through the IRS, but I do have my EIN for my LLC.

As a side hustle, I am about to start teaching a class as adjunct faculty for a university. I am wondering if I can list my EIN from my LLC and be paid through my LLC for this side gig. Any reason for or against this? Can I/should I do it even if I don't have S corp status yet?

Trying to navigate many learning curves, so any help (or being pointed in the right directions) is appreciated.

Thank you!

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[PsyDr]

S-Corps are for suckers. Basically pointless.

Create a bank account with your LLC. Ask your university if they are willing to pay you as an LLC. I've never heard of a university doing that, but I'm not super familiar with that work and asking is free. If they say yes, just be sure to pay yourself via check through the LLC.

DO NOT MIX PERSONAL FINANCES WITH YOUR LLC'S FINANCES OR THE ENTIRE THING IS POINTLESS.

 

[NeuroTrope]

Why are S-corps pointless? I thought if your "reasonable salary" was much less than your gross, it makes sense to go S-corp. Although if I recall, in California psychologists have to be S-corp and not LLC so I had no choice anyway...

 

[AbnormalPsych]

Why are S-corps pointless? I thought if your "reasonable salary" was much less than your gross, it makes sense to go S-corp. Although if I recall, in California psychologists have to be S-corp and not LLC so I had no choice anyway...

I am not familiar with CA regulations, but can't you do a sole proprietorship?

 

[NeuroTrope]

I am not familiar with CA regulations, but can't you do a sole proprietorship?

Sure, but those carry their own risks...

 

[AbnormalPsych]

Sure, but those carry their own risks...

This is true. Since LLCs aren't an option, how'd you decide on S Corp over sole proprietorship? I am not that familiar with either but would definitely be interested in your thoughts.

 

[iliketohelppeople]

Similar question. Have a couple of possible gigs that would have me as a contractor making over the limit to report to IRS (~600). I hope to do more of this type of work in the future - is it worth it to invest in forming some type of LLC at this point?

 

[PsyDr]

Why are S-corps pointless? I thought if your "reasonable salary" was much less than your gross, it makes sense to go S-corp. Although if I recall, in California psychologists have to be S-corp and not LLC so I had no choice anyway...

There are much better ways to avoid the tax man than an S Corp. I don’t really want to give out financial advice that cost me tens of thousands for free. But go pick up a Snapple bottle or a can of Coca Cola. Notice they use an LLC at the regional level? That should tell you something. I’m not as smart as an international corporation, but I can reason some things out.

If I were in a state that required an S-Corp, you could be damn sure every other asset would be in FLPs for asset protection.

 

[NeuroTrope]

There are much better ways to avoid the tax man than an S Corp. I don’t really want to give out financial advice that cost me tens of thousands for free. But go pick up a Snapple bottle or a can of Coca Cola. Notice they use an LLC at the regional level? That should tell you something. I’m not as smart as an international corporation, but I can reason some things out.

If I were in a state that required an S-Corp, you could be damn sure every other asset would be in FLPs for asset protection.

Whoops, I'm a P-Corp. Been awhile

 

[NeuroTrope]

This is true. Since LLCs aren't an option, how'd you decide on S Corp over sole proprietorship? I am not that familiar with either but would definitely be interested in your thoughts.

I'm no finance guy, but if I recall what I learned, in California you have to be a professional corporation. LLCs and S Corps aren't even options for doctors in private practice, among other professions. P Corps shield non-malpractice personal liability, liability when a shareholder is sued, higher 401k contributions, and deductions for various benefits (including our health insurance). It doesn't protect you from personal malpractice liability so I pay for a separate malpractice insurance, like all practitioners do. I'd ultimately confirm this with a professional though.

 

[AbnormalPsych]

This is all very interesting, thanks for the info.