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Retirement Planning
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Re: ind 401 K

We have many clients who work as sole proprietors and bill under their social security numbers. For privacy protection, however, we generally recommend that these doctors apply for an EIN from the IRS so they aren't giving out their social security number to all of the insurance companies.

When you set up a Solo 401k, however, you do need to have an EIN in place. Once the assets of the Solo 401k exceed $250k, or in the year the plan is liquidated, you need to file a Form 5500 with the IRS, and they will ask for the EIN of the business that set up the plan. The form does not allow for you to use your SSN here.

And as far as setting up an LLC goes, you don't need an LLC to open a Solo 401k or to bill your patients. You should speak to a lawyer in your state as to what benefits you should expect to receive if you do set up an LLC for your practice.

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