Many physicians are under the misunderstanding that they can reduce their liability and lower their taxes by incorporating.
What they do not understand is that malpractice liability is always personal, and incorporating doesn’t protect against it. In addition, there are very few business deductions that a corporation can take that a sole proprietor cannot.
It doesn’t take anything to be a sole proprietor other than receiving earned income on a 1099 form.
A sole proprietor can even open an individual 401(k), although he will need to spend 2 minutes obtaining a free Employer Identification Number (EIN) from the IRS before doing so.
The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs for specifically aimed at helping doctors. If you’re a high-income professional and ready to get a “fair shake” on Wall Street, The White Coat Investor channel is for you!
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