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Re: Incorporating...does it matter what state??

For starters, I think it makes a lot of sense for people who have a practice and plan to maintain that practice for a number of years to incorporate.

That being said, I never understand why people say that you can deduct more business expenses as a corporation than you can as a sole proprietor. (If anyone can let me know what I'm missing here, I'd appreciate it.)

What I've seen is that everything that is deductible to a corporation is also deductible to an unincorporated business. Plus, some expenses like the home office deduction and your automobile expenses are easier for an unincorporated business to claim.

Plus, there are a lot of costs that go along with setting up and maintaining a corporation. You also need to put yourself on the corporation's payroll, which comes with a host of headaches and costs.

Finally, you probably need to register your corp as a foreign corp before you can work in any state. More headaches!!!

So from a purely tax perspective, if you'll only be doing your Locums for a few years, I vote that you consider doing so as an unincorporated business.

(You should definitely seek the advice of a lawyer, however, to see what risks you can minimize by incorporating.)

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