At ProLocums, we believe there is no one-size-fits-all way to organize partnerships with hospitals, and the same applies to our relationship with the physicians we hire to care for patients.
Whether you are employed and receiving a W-2 or are an independent contractor physician receiving a 1099 depends on various factors including specialty and role. Most physicians have been W-2 employees at some point, so they inherently understand this model. The independent contractor (IC) model is a little more foreign to many, so it is important to understand the pros and cons of this tax status.
Transitioning from an employed model to being an independent contractor physician (ICP), or starting your career as an independent contractor, presents a variety of often bewildering questions. One of the first is likely about the difference between forming an LLC and an S Corp.
Choosing the right business structure is a complicated question that depends on your state, personal financial goals, and family needs. To help physicians navigate these choices, we've teamed up with DocWealth.io, which specializes in providing CPA services for 1099 physicians to maximize their earnings. Consulting with a professional like DocWealth.io can help you come up with a plan that fits your particular situation and needs.
In this article, we will discuss why being a 1099 physician is the best option and explore whether you should form an S Corp or an LLC to maximize your financial benefits.
When deciding between forming an LLC or an S Corp as a 1099 physician, it's crucial to understand the distinctions and benefits of each structure.
S Corporation (S Corp): An S Corp, or S corporation, is a type of business entity that offers the advantage of pass-through taxation. This means that the company's profits and losses are passed directly to the individual owners, who report them on their personal income tax returns. This structure helps avoid the double taxation commonly associated with traditional C corporations. Owners of an S Corp can also save on self-employment taxes, as they can take a reasonable salary and distribute remaining profits as dividends, which are typically taxed at a lower rate. [not subject to additional self employment taxes.]
Limited Liability Company (LLC): An LLC, or limited liability company, blends the benefits of a corporation with the flexibility of a partnership or sole proprietorship. LLCs are relatively easy to establish and operate, offering significant flexibility in how they are taxed and how profits and losses are allocated among the owners. The members of an LLC are not personally liable for the company's debts and obligations, providing a layer of personal asset protection. Profits can be distributed among one or more members, making it a versatile choice for many business owners.
Contrary to popular belief, the primary purpose of forming an LLC for physicians is not necessarily to shield from liability, but to create an opportunity to save money through electing S Corp taxation.
How Does an LLC Help Lower Your Tax Bill? An LLC can choose to be taxed as an S Corp, allowing the business owner to take advantage of pass-through taxation while also potentially reducing self-employment taxes. By electing S Corp status, the physician can receive a portion of their income as a salary (subject to payroll taxes) and the remaining as a distribution (not subject to self-employment tax), leading to overall tax savings.
Many independent contractor physicians opt to form an LLC for its ease of setup and then elect S Corp taxation for federal tax benefits. This setup allows physicians to benefit from the simplicity of an LLC while enjoying the tax advantages of an S Corp.
Here’s how it works:
1. Formation and Election:
2. Revenue Flow:
3. Salary and Distributions:
As both the employer and employee, the independent contractor physician can significantly reduce self-employment taxes. For 2024, the self-employment tax rate is 15.3% on earnings up to $160,200, with an additional 2.9% on income above this threshold. By balancing W-2 wages and distributions, physicians can save thousands of dollars annually, primarily on payroll taxes, while still meeting their income tax obligations. This strategy offers substantial savings for independent contractor physicians.
Dr. Smith owns Smith Medical, LLC. ProLocums pays Smith Medical, LLC $325k through 1099 payments. Smith Medical, LLC then pays Dr. Smith a $125k salary via W-2. As a result, Dr. Smith’s payroll tax is calculated only on the $125k salary instead of the entire $325k.
Payroll Tax Implications Without an LLC:
Payroll Tax Implications With an LLC:
By structuring his income this way, Dr. Smith saves over $10,000 in payroll taxes.
The next common question is, “What about the $200k that I’m not taking as wages?” That $200k remains your money and can be accessed through owner distributions or dividends. You can transfer these funds from your business bank account to your personal account with ease. The advantage here is that this $200k is not subject to payroll tax, though it is still subject to income tax.
Forming an LLC and electing S Corp taxation has numerous benefits, but there are also potential downsides. These include compliance with additional tax rules and regulations specific to S Corps. Physicians considering this option should weigh the benefits and drawbacks and consult a tax professional before making a decision. For more information, visit DocWealth.io.
In recent years, the tax landscape for independent contractors has become increasingly complex, making much of the existing online information outdated. Consulting with a tax professional is crucial for understanding your specific situation.
Qualified Business Income (QBI), outlined in Section 199A of the tax code, refers to net income from a qualified trade or business eligible for deductions under the Tax Cuts and Jobs Act of 2017. For independent contractor physicians, this income is eligible, but only if it falls under certain thresholds:
QBI Example:
Understanding QBI and its implications can significantly impact tax planning and savings for independent contractor physicians. For more detailed advice tailored to your circumstances, visit DocWealth.io.
The 2017 tax law that introduced QBI also capped state and local tax (SALT) deductions at $10,000, targeting high-income earners like physicians. To counteract this, many states have introduced or proposed a Pass-Through Entity (PTE) Level Tax. If your state offers PTE, you can pay a portion of your state income tax through your LLC and receive a federal deduction.
For Example:
This strategy allows high earners to navigate the SALT deduction cap effectively.
Organizing an LLC and paying yourself as an employee adds complexity but can lead to substantial savings. In the examples above, Dr. Smith could save:
These figures don’t include potential savings from retirement contributions or business deductions. While these examples are simplified and may not apply to your specific situation, the potential benefits are significant.
For personalized advice, consult your CPA or schedule a free 30-minute session with DocWealth.io.
If you're trying to pay off medical school loans while avoiding the rat race—or you're planning a more relaxed route toward retirement—a medical staffing agency might be exactly what you need. These agencies help healthcare professionals, including physicians, nurses, and allied health workers find temporary contract opportunities across medical facilities. Whether you're after flexibility, diverse clinical exposure, or high-paying contracts working through a staffing agency can help you meet your personal and professional goals.
Malpractice insurance proves to be the major pros of partnering with a credible healthcare staffing agency. These agencies typically offer full coverage, so you’re listed as an additional insured under the policy. Understanding key insurance terms—like claims made and occurrence-based policies or tail and nose coverage—is important.
Staffing agencies partner with hospitals, clinics, and rural facilities across the country, so you can work in various healthcare settings. This exposure not only enhances your clinical skills but also expands your professional network making you more competitive in the long run. Whether you want to try out a new region or test different specialties these contracts offer flexibility.
Continued education resources, help with licensing, travel logistics, and even housing arrangements are often part of the package. Great agencies also help with out-of-state credentialing so you stay compliant and up to date with your documentation. A strong credentialing department will notify you of expiring licenses or certifications before they become an issue.
With so many agencies to choose from it's important to find one that aligns with your values, goals, and preferences. Here are some tips:
Searching online for a healthcare staffing agency near me will help you narrow down options that fit your location and specialty needs.
Contract jobs offer great opportunities, but you need to take charge by excelling in temporary positions:
Medical workers now turn to staffing agencies to get flexibility and make more money. Those in the middle of their careers use agencies to test different work settings or travel. Professionals close to retirement take on short-term jobs to stay in healthcare but work less.
If you want to discover your options, looking up for a healthcare staffing agency near me is a smart way to begin finding jobs that fit both your goals and how you live your life.
A healthcare staffing agency offer more benefits in addition to finding jobs. They provide what you need to succeed, including help with insurance, credentialing, learning opportunities, and access to various roles in today’s fast-changing medical field.
If you want to move forward your career, ProLocums stands out as a great option. They link healthcare workers to clinics and hospitals all over the country. Their team provides custom support and contracts designed to match your goals. Whether you want more freedom new experiences, or better pay, ProLocums helps you land the right opportunity.
06/11/2025
The healthcare sector is growing swiftly, and telemedicine is at the forefront of this growth. For locum professionals, this transformation presents an exceptional opportunity. In the past, people had to relocate for short-term assignments, but today they can perform the same job from a home office with a secure internet connection.
Telemedicine isn’t the future. It’s the present. And for locum physicians, it’s changing the manner you work, connect, and provide care.
Usually, locum tenens work was very flexible, though it could interrupt a person’s routine in other ways. Clinicians were tasked with going to many locations, getting accustomed to new ways of working, and dealing with different levels of help in each facility. Telemedicine changes that equation entirely.
Today, you have the ability to give excellent care to patients anywhere in the country without traveling. Now, you can overlook prolonged car rides, daily hotel stays, extensive travels, and instead manage your schedule, finances, and time with utmost flexibility.
Care facilities are undergoing grave staffing shortages. As demand increases, so does the requirement for accessible care. Telemedicine service has stepped in to fill that gap, and locum physicians are uniquely suitable to succeed in this model.
1. Practice from Anywhere, Serve Everywhere
Consider the possibility of working from your living room but still helping people living far away. Since telehealth allows remote communication, you can serve patients from different places. Instead, you can:
2. Expand Your Reach, Not Your Commute
Thanks to telemedicine, you are able to treat more people than before. When you choose virtual care, you are getting the full benefits of medical care.
3. Build a More Varied Career
Using a simulated environment, you can encounter various care procedures, modern platforms, and what patients require. As you go on, these experiences can make you more skilled and attractive to employers. Not having the same cases all the time helps prevent the professional exhaustion that usually comes with traditional locum work.
1. Understand Licensing Requirements
Nowadays, patients search for ‘telemedicine service near me’ in order to consult physicians virtually. Each state has its own rules for telehealth, and in most cases, you must have a license in the patient’s location. Luckily, some strategies can help make the process less difficult:
Working with a staffing agency means that you don't have to worry about paperwork and credentialing
2. Get Comfortable with the Tech
You don’t have to know everything about computers, but you do need to feel secure using technology. Before starting your first assignment, you should ensure you are trained and prepared on all you need to know.
3. Focus on Virtual Bedside Manner
In the end, taking care of patients is mostly about connecting. You should communicate in a different way when working remotely.
Trust and love are still important, even when the interaction is on a screen.
Telemedicine helps in locating professionals and finding ways to succeed, change, and work as they please. If you wish to increase your income, avoid exhaustion, or get a better balance in your life, telemedicine offers you a great solution.
Perform a Google search by typing ‘telemedicine near me’. At ProLocums, applicants can take part in top telemedicine assignments. We help with licensing, training, and finding the right candidates for you so you can concentrate on what you are good at. delivering excellent care.
Want to take part in the advances of the healthcare industry? Get in touch with ProLocums now to find remote locum positions that are a good fit for your needs and aims.
05/20/2025
Absolutely! Here’s how. Doctors who work in locum positions possess high levels of specialization because they can work in multiple medical fields through their varied work opportunities. The locum physician industry features specific positions for medical professionals who are OB/GYNs, radiologists, or cardiologists. Locum doctors select full-time roles because they enjoy the flexibility and higher compensation levels as well as the diversity of roles available to them.
ProLocums collaborates with professional-specific providers each day to assist them in their locum physician job search. The specific breakdown of how specialization operates within locum practices can be explored through the following details.
The locum positions extend beyond general practice clinical work. All medical specialties currently experience a growing need for locum workers. The development of medical expertise by doctors leads to positive outcomes for them in this situation. The locum jobs online opportunity exists for both high-risk neurology specialists and emergency medicine practitioners who want to use their expertise.
Top specialties in demand include
High demand exists in locum practice because of workforce deficits alongside rising patient numbers and the requirement for short-term medical staffing solutions, primarily in rural medical areas without sufficient physician presence.
Medical practitioners remain the leading community of locum professionals, but the employment sector continues to expand. Various healthcare occupations currently provide temporary roles with similar working characteristics to locum positions.
The workforce of advanced practice providers incorporates NPs together with PAs who fill positions in different healthcare settings, including primary care, urgent care, and specialties.
Nurses (RNs & LPNs) are in high demand for temporary roles across the country.
The field of locum work includes various allied professionals such as pharmacists, along with physical therapists, lab scientists, and radiologic technologists.
On-demand dental professionals consisting of specialists and dentists have priority placement requirements in specific geographical areas where physician staffing remains challenging.
Healthcare professionals seeking both flexibility in work and meaningful employment will find a good match through locum jobs online.
The practice of locum has evolved into a permanent locum physician job choice for multiple doctors in healthcare fields. More physicians now opt for locum-only practice because they receive the following advantages:
Locum offers physicians complete freedom to determine their working hours along with their locations and work frequency. Similarly, they get higher pay, often better than permanent roles, especially for high-demand specialties. They will experience less burnout due to reduced administrative burden while focusing more on patient care.
Healthcare professionals who choose locum roles have the chance to see different medical systems at urban hospitals and rural clinics. This lifestyle appeals to early-career doctors exploring different settings. Physicians who have stopped working full-time can utilize such opportunities to work as they please. Similarly, they can enjoy adventurous trips, thereby maintaining work-life balance. Specialists choose this path for obtaining elevated salary prospects together with expanded professional variety options.
Locum and specialization complement each other in powerful ways:
1. Precision Matching
The databases and matching systems at locum agencies help identify facilities requiring specialists according to your recorded skills. Your opportunities to work at your full licensing scope will increase when selected through locum services.
2. Filling Critical Gaps
Hospitals depend on locum specialists to handle vacancies, which become especially important in areas where permanent staff cannot be hired easily. The depth of your skills ensures continuous patient treatment remains strong during critical healthcare moments.
3. Expanding Your Experience
Locating your practice in diverse settings allows specialists to encounter multiple healthcare environments, clinical approaches, medical systems, and patient demographics. Early-stage medical practitioners can boost their careers by working as locums, while professionals at any stage can use locum work for clinical refreshment.
Doctors usually select locum because it provides them with control over their personal lives. Doctors who choose locum can accomplish their goals of finding improved work-life balance and career development as well as exploring new opportunities.
ProLocums exists to assist your professional development. The recruiting team at our company connects medical professionals with roles matching their field through high-demand positions. Our company enables all locums to simplify their lifestyle because we provide premier compensation alongside certification aid with flexible positions and travel benefits.
Ready for your adventure era? Contact our ProLocums staff or view current openings through our website. The right opportunity is waiting.
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