Start travel agency

[shanequa1]

I have read all the posts about the steps needed to become an IC travel RN. Since a business is required to form a corp or LLC in each state where they work, where do you think the best states to focus on are. At first I was thinking CA because of its high wages, but there is a minimum $800 tax on businesses. My thoughts are to focus on high wage states with no or low state taxes and compact states. Any input would be greatly appreciated. Thank you.

[NedRN]

For starters, you do not need a separate entity at all. Sole proprietorship is fine. Not all states require registration of foreign (out of state) corporations and generally there is a threshold of some sort, often requiring some physical presence in a state. Picture a hospital sending an employee to a device convention out of state (or any business trip) to purchase or sell equipment. Is that doing business in the state requiring corporate registration?

Something to know about small businesses is that they don't necessarily follow all the corporate laws in all states. Flying under the radar is the norm. There is a risk/reward as you get bigger, bigger corporations have more risk from not following state regulations, but also more money to be able to conform.

I have sent travelers to multiple states over the years (mostly myself), including many hospitals in California. Not one asked any questions about my business entity, nor questioned supplied documents listing non-California workers comp certificates and unemployment insurance. From talking to other small agency owners, they work similarly until caught by some state agency. I talked to one owner who ended up in (I think it was) a workers comp premium issue and had to pay up. Interestingly, workers comp did not share the info with other agencies so he continued to not register as a foreign corp or with the other regulatory agencies.

I don't know if I'm legal or not, and not sure I want to know. When I got started, I tried to get some answers, but none were clear. Massachusetts is highly regulated for agencies, and while their law was not clear, they told me one employee working there did not require further registration. Heck, there is no question that I am performing work in other states, but it is not even clear to me that I am an employee. I don't pay myself by the hour, and I only run one payroll a year, with the salary being determined by net after all expenses. I also pay myself as president as my corporation, not as a nurse, so there is a real disconnect from work done in a state working under my license.

Begin to see how complicated the questions might be? It is easier not to sweat the state details and just focus on hospital needs. Not easy for the OCD like me, but the details and rules are just too much. And I find IRS rules easy!