Limited partnership

[OBNurseShelley]

Not sure if this is the right place to post this, but I have a few questions. I have recently discovered an option that sounds lucrative, and wanted some feedback from other business-minded nurses.

Does anyone know anything about this and how it's different from IC?

http://www.independentnurse.com

Seems, they have set up a partnership, and you join and become part of it, you then have access to all the "coorporate" benefits as well as, HUGE tax savings. You don't have to do any of the grunt work, as they take care of it, you can even work their existing contracts if you can't find your own, and still make more pre-tax income.

This mainly applies to travel nurses, but I've heard of working local as well, and it mainly applies to floor nursing.

I have no business knowledge whatsoever, so could someone please elaborate on these terms.

C-Corp

S-Corp

limited parternship

profit distribution - draws

"You mention independent contracts or independent contractors in your post several times. The bottom line is that the IRS doesn't view nurses as independent contractors. Do some nurses do it? Yes and they will continue to do so, but the risk is great for IRS deeming you an employee. That is why most hospitals will not deal with I/C's. If you are a partner in a limited partnership you cannot be a independent contractor and we have set it up so you will not be an employee either. A partner is a partner. "

That was quoted from another forum I frequent, the president of independentnurse.com

I very interested in this topic,and im trying to gather as much information as possible.

Any thoughts or ideas or advice regarding this business would be appreciated.

thank you so much

SHelley

[indie]

I take issue (and thus hope to help clarify for you) the statement that 'the IRS does not view nurses as independent contractors.

Over about a ten year history in CA I have been an independent RN IC and had no problems with the IRS using Turbo Tax for my returns. Sometimes I am even an employee (of a different organization) at the same time. At the same time one of my colleagues was undergoing a huge tax dispute related to their home based business growing a certain plant, so I was aware of some similar issues.

Usually the IRS looks for certain criteria in determining IC status. Ask any general contractor - he is responsible for verifying the fact that his sub contractors are IC or he will be required to withhold taxes.

The details can vary, but some of the pointers are a business license, working for more than one organization, i.e. having more than one contract, independently printed stationery. A separate business entity e.g. S corp, LLC etc is very helpful, but not essential, at least in a tax sense.

Beware of organizations offering 'huge' tax savings. Very detailed paperwork can sometimes get you small benefits. If you are thinking of a large capital expenditure e.g. new computer for your business, then check into the tax savings possible before you buy. Otherwise I have not found the paperwork and slight worry worth the effort.

Beware of home offices - there are many rules as to how much space and use of the equipment can be claimed against tax. If you use your home office space/computer etc for private use there will be issues you need to clarify before you start.

I keep IC very simple, do my own paperwork with occasional resource to a CPA or atty. prn on specific matters. Use the govt. resources in your state - they can be very helpful. Use people's opinions and ideas, including this one, as pointers, but do your own homework using govt. based web sites, offices and resources. The IRS web site is much more user friendly these days and everything is there if you devote a day or two to finding the info.

"Most hospitals will not deal with ICs" - that's a very sweeping statement; as we speak, more and more hospitals are having to go with IC nurses because we are a growing force that will not go away. (Think of how many PTs are IC!)

I belong to Nat. Assoc. of Ind. Nurses (NAIN) at independentrn.com - nothing to do with the web address you posted I believe. We are a sane group of practising ICs but you need membership to get to the bulletin board. Also NAIN is setting up a Professional Practice Group for ICs to join forces, without this being an agency or compromising IC status in the eyes of the IRS.

The above is not legal information; just some pointers I have followed successfully.

Incidentally, Medi-Cal allows RNs (not nurse practitioners) to be Independent Nurse Providers and classes them as Independent Contractors. How can the IRS not believe this is a a genuine IC RN?

[OBNurseShelley]

I'm sorry i posted the wrong website, you misunderstood me, those were not my statements but those of this other person, who has this company.

http://www.independentnurse.com

this is something totally different from being IC, check out his website, he's also posted replys on here a while back i did a search for his name. David Magee.

He apparently used to help IC's but now he has a different business model, I was just trying to find out more information regarding that.

thanks for your help.

SHelley

[WyomingRN]

I have gone through the independentnurse web site one a couple of occasions. As a successful independent RN, I find many thing stated on that site misleading and questionable.