Incorporated home health physical therapist?
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.Marcia's Answer:
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 (different than an independent contractor) - 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.
Since I was PRN, the agency still took out taxes etc. An Independent Contractor will need to take care of all that themselves.
You may want to consider the cash pay
model that is becoming very popular. This avoids the headache of ever changing insurance but can also be vague in it's rules and regs so do your homework!
If you didn't grab your copy of Home Health Lemons
, be sure to grab it now - it offers great insight into how physical therapy pay can affect patient care.
Check out Preventing Home Care
- it's over half off right now!
Be sure you know what patients expect
from a home health physical therapist.