Is incorporation necessary??????

SusanJean · Dec 13, 2004

Ck your county/state website for small business start ups -- you should be able to get some idea on which way you want to go.

My husband's vet clinic is a "DBA" - "doing business as" -- and is not incorporated or a limited partnership.

SJ

WyomingRN · Dec 14, 2004

See the thread entitle is "incorporation - liability - confusion" The link is https://allnurses.com/forums/showthread.php?t=78807

arkierns · Jan 7, 2005

I have been an RN for 20 years, but I am also a Registered Financial Counselor. The answer is no. The main purpose of incorporating as an S or forming an LLC is to protect yourself from liability. If you have firm assurance from your malpractice insurance that you are covered, then you probably wouldn't need to incorporate. I would double check with a lawyer in your state. Our business is litigation crazy as you know. Ask him/her if there is any possibility someone can sue you personally without, or in addition to, making it a malpractice suit. If there is, don't risk it, forming an LLC (which I would reccomend), is not that expensive (certainly a lot less expensive than your house, which they could take).

Quickbooks is very good, but also very expensive. I have 2 business and do not use anything more than a $2 ledger I get from Wal Mart.

My expertise is taxes, if you have any more questions.

NedRN · Jan 18, 2005

I'm having a hard time seeing the value of S-corp or LLC right now for what I'm considering doing. If I have a payment arrangement with the family, a doc to call PRN, and I have malpractice that covers me in the situation, isn't that enough? Is all of this contract stuff necessary?

It sounds like your question is primarily about liability. If so, incorporating will do nothing for you. As a licensed professional, you are personally responsible for your practice, makes no difference if you are a hospital employee or employee of your own corporation or (as you are right now), a sole proprietor.

The main reason that professionals incorporate (including physicians), is for benefits. And if your income is going to be substantial from this business, then it is worth looking into different business entities.

For most other types of businesses, the primary reason is to limit liability so it was a good question.

earthlovers123 · Jul 17, 2005

useful info

eddy · Aug 26, 2005

I'm EXTREMELY uncomfortable with nurses taking on business like this from contacts they have made through their employer. No offense, but unless you have obtained specific permission from your employer to do this it is unethical, is likely a violation of your employment with the hospital and quite possibly could be a civil tort (read: you could get sued by the hospital). Since it is likely that the hospital either directly provides these services or indirectly does so through an affiliate or division, what you intend to do appears to me to be nothing less than stealing.

Imagine if an accountant working for a firm chose to assist some of the firm's clients accounting needs outside of work for private pay. Since the accountant would have no knowledge of the client without being employed by the firm, he has no right to take advantage of the firm's client roster for private gain. This is the same thing, and it's against the law, having been proven in courts across America many times over.

Not your customer. It's the hospital's... Unless they give you permission to take said customer, then all is well. But be respectful and ASK first. If they say no, don't do it.

Good luck!

jsteine1 · Aug 30, 2005

I'm EXTREMELY uncomfortable with nurses taking on business like this from contacts they have made through their employer. No offense, but unless you have obtained specific permission from your employer to do this it is unethical, is likely a violation of your employment with the hospital and quite possibly could be a civil tort (read: you could get sued by the hospital). Since it is likely that the hospital either directly provides these services or indirectly does so through an affiliate or division, what you intend to do appears to me to be nothing less than stealing.
Imagine if an accountant working for a firm chose to assist some of the firm's clients accounting needs outside of work for private pay. Since the accountant would have no knowledge of the client without being employed by the firm, he has no right to take advantage of the firm's client roster for private gain. This is the same thing, and it's against the law, having been proven in courts across America many times over.
Not your customer. It's the hospital's... Unless they give you permission to take said customer, then all is well. But be respectful and ASK first. If they say no, don't do it.
Good luck!

I absolutely agree. This hospital did all the leg work, advertising, developing relationships with physicians and other health care providers to ultimately "obtain" this patient. This would be especially problematic if this hosp has its own PD or HHA agencies. The original writer references the patient may have insurance coverage for private duty care. Even so, that does not mean the carrier will accept invoicing from an independent. Frankly, most wont from a nurse who is working independently. Most carriers have provider application processes and review new providers as possibles only once or twice a year. Just like a health care entity, you would have to verify the insurance and see if you meet their requirements. Dont assume this family is willing to pay you cash and then submit your bill to their carrier and hope for the best. Many do unfortunately and are sorely disappointed to learn that their provider was not on the approved list of that insurance company. So in addition to the legal and ethical issues at hand, There are many complicating factors. On a personal level, I can tell you that if a family with the best intentions ends up holding the bag and not getting paid by insurance but has already paid the nurse, they may go after the hospital as a recourse and that will not serve you well in your bread and butter relationship with your primary employer.

eddy · Oct 5, 2005

I absolutely agree. This hospital did all the leg work, advertising, developing relationships with physicians and other health care providers to ultimately "obtain" this patient. This would be especially problematic if this hosp has its own PD or HHA agencies. The original writer references the patient may have insurance coverage for private duty care. Even so, that does not mean the carrier will accept invoicing from an independent. Frankly, most wont from a nurse who is working independently. Most carriers have provider application processes and review new providers as possibles only once or twice a year. Just like a health care entity, you would have to verify the insurance and see if you meet their requirements. Dont assume this family is willing to pay you cash and then submit your bill to their carrier and hope for the best. Many do unfortunately and are sorely disappointed to learn that their provider was not on the approved list of that insurance company. So in addition to the legal and ethical issues at hand, There are many complicating factors. On a personal level, I can tell you that if a family with the best intentions ends up holding the bag and not getting paid by insurance but has already paid the nurse, they may go after the hospital as a recourse and that will not serve you well in your bread and butter relationship with your primary employer.

Thank you for the backup on that. :)

It just seems all too often that we (nurses) neglect some important ethical and legal points when we set our eyes on going into business for ourselves.

I am all for nurse entrepreneurs. I think it's AWESOME, as long as it is done the RIGHT way. :)

dreamlandeals · Jan 14, 2006

:)