Setting Up A "Business"
Depending on the type of work you want to get into outside of the day/day practice, you may want to set up a personal-business limited liability company (LLC) in your own name. Any extra income you produce can be passed through the LLC. This can be important to keep side activities separate from your personal assets, and having the company has tax benefits. To set one up you can talk to a local accountant or use one of the many online resources (LegalZoom). I personally used my accountant which was more expensive, but I know done correctly. Furthermore, apply for a new business credit card (again to keep finances separate from personal).
Make sure in your contract with an employer that any outside ventures you partake in (list below), you are the rightful beneficiary of all income generated from that event. Its often referred to as being allowed to generate 1099-income (1099 being the tax form form "independent contractor").
Make sure in your contract with an employer that any outside ventures you partake in (list below), you are the rightful beneficiary of all income generated from that event. Its often referred to as being allowed to generate 1099-income (1099 being the tax form form "independent contractor").
- Good reads..
- "LLC & PC Definitions" by William Pirraglia
- "How Pass-Through Income Will Be Taxed In 2018 For Small Business Owners" by Greenbush Financial Group, LLC
- "What Tax Reform Means For Small Businesses & Pass-Through Entities" by Kelly Phillips Erb (via Forbes.com)
- Ways to make money include:
- Consulting - pharma and hardware companies are the 2 most common.
- Lecturing - local, state, and national organizations pay a stipend for lectures given and typically will additionally reimburse for travel.
- Legal Related Activities -
- Physician Consultations; Narrative Reports; Medical Record Review; Independent Medical Examination (IME); Deposition; Court Appearance/Expert Witness.
- Make a "billing/fee" sheet. Examples can be found here, here, and here. Each of these should have a pre-determined "fee" as well as noting a cancellation fee. Make sure all payments are received prior to the activity requested.