Having a private practice gives you a lot of flexibility tax-wise.

First off, you can deduct your professional expenses that you were not able to write off through your job. Plus, you can write off a portion of your car, and you can also write off a portion of your home by claiming the office deduction.

When you're self-employed, you can set up your own retirement plan, and shield some of your income from taxes. Assuming you'll max out a 401k plan at your job, you'll set up a SEP IRA, and put away 20% of your net private practice income each year.

If you're married, and your spouse doesn't work or doesn't have access to a retirement plan at work, you can employ your spouse, set up either a SIMPLE IRA or a Solo 401k for your practice, and put away up to $16,500 into a pre-tax, tax-advantaged, creditor protected account - even if you are maxing our your salary deferrals through your job.

And if you have kids, you can employ your child, and save taxes on the money paid to your kid even though your kid won't owe a dime in taxes.

And even if you can't take advantage of any of these things, having a private practice will help increase your income this year, and help you reach your ultimate goal of having your own practice down the road.

I hope this helps you our.

Zip Code: 01801