Advice From Independent Contractors?

xkred27 · Apr 24, 2004

Being an employee (w-2) should not effect the write-offs that you do while working as an independent contractor/sole proprietor (1099). I think that you should be able to write off the expense of your health insurance as well as other expense like home office, cell phone, internet access, meals, milage, uniforms, etc. If you are planning on contracting on a permenant basis you should think about forming a corporation. That way you can avoid paying a large amount of the self-employment taxes and also write-off the depreciation of a vehicle. Try to find a good CPA in your area that knows a lot about small business tax.

Bill

suzanne4, RN · Apr 24, 2004

It would be much to your benefit to incorporate right from the beginning.

There have many legal cases involving independent contracting as an RN.

Per one of the big cases that came out of federal court in Washington DC a few years ago was that the nurse needed to be incorporated to be able to function as an IC, or be set up as a LLC. You won't be able to "get away" with it as a sole proprietor. You are just looking for trouble. It is extremely easy to incorporate and can be done in most states in just a day or two. And you can do it on your own, without the lawyer fees. And you want to go for the "S" corporation so that you don't pay a separate corporate tax on.

Hope that this helps................... :balloons:

suzanne4, RN · Apr 24, 2004

It would be much to your benefit to incorporate right from the beginning.

There have many legal cases involving independent contracting as an RN.

Per one of the big cases that came out of federal court in Washington DC a few years ago was that the nurse needed to be incorporated to be able to function as an IC, or be set up as a LLC. You won't be able to "get away" with it as a sole proprietor. You are just looking for trouble. It is extremely easy to incorporate and can be done in most states in just a day or two. And you can do it on your own, without the lawyer fees. And you want to go for the "S" corporation so that you don't pay a separate corporate tax on.

Hope that this helps................... :balloons:

gugal · Apr 24, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once I read about legal issues (eg, IRS definition of an employee vs independent contractor)--but one CRNA I worked with did some independent contracting and had advised me that it wasn't worth the time and expense to become incorporated. I didn't know it was possible to pursue this without having huge legal fees involved. And, being new to this, any advice on how to find a good CPA? I've never used one before.

It would be much to your benefit to incorporate right from the beginning.
There have many legal cases involving independent contracting as an RN.
Per one of the big cases that came out of federal court in Washington DC a few years ago was that the nurse needed to be incorporated to be able to function as an IC, or be set up as a LLC. You won't be able to "get away" with it as a sole proprietor. You are just looking for trouble. It is extremely easy to incorporate and can be done in most states in just a day or two. And you can do it on your own, without the lawyer fees. And you want to go for the "S" corporation so that you don't pay a separate corporate tax on.
Hope that this helps................... :balloons:

gugal · Apr 24, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once I read about legal issues (eg, IRS definition of an employee vs independent contractor)--but one CRNA I worked with did some independent contracting and had advised me that it wasn't worth the time and expense to become incorporated. I didn't know it was possible to pursue this without having huge legal fees involved. And, being new to this, any advice on how to find a good CPA? I've never used one before.

It would be much to your benefit to incorporate right from the beginning.
There have many legal cases involving independent contracting as an RN.
Per one of the big cases that came out of federal court in Washington DC a few years ago was that the nurse needed to be incorporated to be able to function as an IC, or be set up as a LLC. You won't be able to "get away" with it as a sole proprietor. You are just looking for trouble. It is extremely easy to incorporate and can be done in most states in just a day or two. And you can do it on your own, without the lawyer fees. And you want to go for the "S" corporation so that you don't pay a separate corporate tax on.
Hope that this helps................... :balloons:

xkred27 · Apr 24, 2004

Where do you live? I know of a great CPA in the Portland OR area. PM me if you are interested.

xkred27 · Apr 24, 2004

Where do you live? I know of a great CPA in the Portland OR area. PM me if you are interested.

suzanne4, RN · Apr 25, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once I read about legal issues (eg, IRS definition of an employee vs independent contractor)--but one CRNA I worked with did some independent contracting and had advised me that it wasn't worth the time and expense to become incorporated. I didn't know it was possible to pursue this without having huge legal fees involved. And, being new to this, any advice on how to find a good CPA? I've never used one before.

It depends on which state that you live in. Costs are are actually just a hundred or two hundred dollars to incorporate, for the actual filing of the paperwork with your Corporation Commission. Hope that this helps...........

:balloons:

suzanne4, RN · Apr 25, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once I read about legal issues (eg, IRS definition of an employee vs independent contractor)--but one CRNA I worked with did some independent contracting and had advised me that it wasn't worth the time and expense to become incorporated. I didn't know it was possible to pursue this without having huge legal fees involved. And, being new to this, any advice on how to find a good CPA? I've never used one before.

It depends on which state that you live in. Costs are are actually just a hundred or two hundred dollars to incorporate, for the actual filing of the paperwork with your Corporation Commission. Hope that this helps...........

:balloons:

loisane · Apr 25, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once ...

Gugal,

You might want to check out http://www.anesthesiabiz.com

I haven't used the service myself, but I know the gal who set it up. She has been a CRNA for awhile, but previously had business background. She has been doing locum/independent contractor for awhile, and saw a need to share the how-to's she had learned. From what I understand, there is a fee for some of the service, but there is also some free information on the site. And it is specific to CRNA practice, which is an advantage, I think.

loisane crna

loisane · Apr 25, 2004

Thanks so much for the advice...I wasn't sure about becoming incororated but had thought about it once ...

Gugal,

You might want to check out http://www.anesthesiabiz.com

I haven't used the service myself, but I know the gal who set it up. She has been a CRNA for awhile, but previously had business background. She has been doing locum/independent contractor for awhile, and saw a need to share the how-to's she had learned. From what I understand, there is a fee for some of the service, but there is also some free information on the site. And it is specific to CRNA practice, which is an advantage, I think.

loisane crna