Discussion:New doctor coming into partnership practice
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Discussion Forum Index --> Advanced Tax Questions --> New doctor coming into partnership practice
Discussion Forum Index --> Tax Questions --> New doctor coming into partnership practice
Vermontcpa (talk|edits) said: | 10 October 2007 |
| I have a newer client that is a 3 person LLC medical practice. They have another doctor they are considering as a partner or bringing on as an independent contractor and 1099ing them.
What would be the tax advantages to each alternative? | |
Death&Taxes (talk|edits) said: | 10 October 2007 |
| In the latter situation, do they want control over his activities? It could be a payroll situation. | |
Vermontcpa (talk|edits) said: | 10 October 2007 |
| No they do not want control. Additionally the new doctor will continue to work at multiple facilities that exist outside this partnership | |
Vermontcpa (talk|edits) said: | 10 October 2007 |
| If they want new doctor as owner than partner would be the applicable choice? If they don't want as partner/owner than what? | |
| 10 October 2007 | |
| Being an LLC member is like being married. Being either an employee or a 1099 independent contractor is like going steady. Breaking up when you are going steady can get ugly, but not nearly so ugly as getting a divorce. | |
| 10 October 2007 | |
| As Jd alluded to, perhaps the LLC should test out the relationship w/ the new doctor as an independent contractor or employee before going any further. If things don't work out, the LLC and new doc can go their separate ways. I'd think the non-tax aspects would take precedence in this situation.
Jd, you're starting to show your age. I haven't heard someone say "going steady" in a very long time. :) | |
| 10 October 2007 | |
| Sorry. I knew my age was showing when my 21 year old, about 2 or 3 at the time, looked at me from her highchair at dinner time and said, "Daddy, you have a hole in your hair." | |
| 11 October 2007 | |
| You will want to review Section 754 for "hot assets" AR and Inventor to equalize "inside basis" and "outside basis"; Tax Managment has very good research on this. | |
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