Incorporated home health physical therapist???

by Jonathan
(Biloxi, MS)

I work part-time for a home health company and am seriously contemplating going full-time here in the near future. As I'm weighing the pro's & con's, I can't help but recall a very faint memory from PT school when we were discussing potential business models.

For some reason, I'm under the understanding that you can incorporate yourself somehow as you work for another company. This way you could write off more business expenses (car, computer, home office, etc.) when it comes to tax time.

I was hoping you could clarify this for me as I may be completely mistaken. If this is possible could you further explain the benefits/disadvantages of assuming this business model (health insurances, benefits, taxes, etc.)

Thank you so very much.

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Incorporated home health physical therapist???

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Jan 22, 2011
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Independent contractor
by: Johanna

It sounds like you are thinking of independent contractor status. You are then considered a Sole Proprietor of your business and can deduct all sorts of expenses, including paying someone to do your taxes or for a tax program, physical therapy equipment, computer equipment, an answering service, etc. If you have children, you can also assign them a weekly job and deduct the money (i.e., you end up deducting their allowance). Just be sure to keep records.

It's very easy to keep track of expenses and income on an Excel spreadsheet if you do not have a QuickBooks type program - I've done it for years for various types of home based businesses. You will want to record your vehicle's mileage at the beginning of each year, and then each place you go to. You can count both ways if you do not do errands on the way home, and the deduction is around 50 cents a mile now. Make sure to keep all your receipts and cancelled checks or bank statements as proof.

One caveat - with the services you would be providing, it would be good to look into insurance and bonding and see whether this would be more cost effective than working through an agency.

Aug 01, 2010
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Incorporating as a home care PT
by: Anonymous

Hi Jonathan,

My best answer to your question is to seek legal guidance on this. Perhaps you can speak to an attorney who specialized in small business start up. They will have the knowledge and expertise to guide you in the right direction.

For years, I worked full time hours as a PRN physical therapist - was never incorporated but was able to write things like mileage difference (the amount that the government allowed that year minus the amount the agency paid me), and other business expenses.

Marcia Oliver MSPT, CPT

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