Independent Contractor vs. LLC - Which is more beneficial for new NP?

Nurses Career Support

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Specializes in Medical Legal Consultant.

Hi Lorie,

I am a newly licensed acute care nurse practitioner in Las Vegas Nevada. I am considering accepting a job where I would be an independent contractor with a 1099. It was suggested that I registered myself as an LLC, but I'm not sure what the benefit of this might be.

Can you explain this to me?

Dear Independent Contractor vs. LLC

One of the benefits of being an independent contractor is that you can deduct or write off any business expense for tax purposes. So, any equipment or supplies that you purchase, that are only used for work, you can write off. However, it does mean that you will to pay your own and your own benefits. The advantage of becoming an L.L.C. is further protection from liability. Before you decide to work as an independent contractor, speak to an accountant who can do the numbers for you and make sure that it's more advantageous for you to be an independent contractor versus an employee.

Some states have made it harder for NPs to be independent contractors such as CA. Please check with your state department of labor and make sure it is legal. Nurses definitely cannot be independent contractors.

Good luck with your decision.

Lorie

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