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.
Locum work isn’t just some passing fad—it’s a real shift for doctors who want control over their schedules, a taste of something new, and, let’s be honest, a better paycheck. Maybe you like the idea of short-term gigs, or you’re itching to escape to the countryside for a while. Or maybe you’re just curious about how other hospitals run things. Whatever your reason, locum roles let you take charge of your own career. But finding the right locum job online? That’s where things can get tricky. Knowing where to search and how to spot the good gigs makes all the difference.
With more doctors choosing contract work, the number of online platforms and agencies has exploded. Some are great, some not so much. There’s a lot of noise out there. The goal is to cut through it and spot the gigs that actually fit your life and your goals.
So, what actually matters when you are looking for locum jobs online?
Skip those giant job boards full of unrelated listings. Go straight to job sites built for medical professionals. They cut out all the noise and connect you with real jobs that actually match your training. Most even let you upload your credentials ahead of time, so you’re ready to jump when the right gig pops up.
A good agency is a game changer. They know the hospitals, the clinics, and sometimes they even hear about openings before they go public. The best agencies don’t just throw jobs your way—they help with contracts, credentialing, and all the onboarding headaches, so you can actually focus on the medicine, not the paperwork.
Seriously, just keep your licenses, certifications, references, and insurance up to date. When everything’s in order, you can grab that perfect job before someone else beats you to it. Most healthcare job platforms let you store all your documents securely, making it easy to apply fast.
The best agencies and job sites don’t disappear once you’ve landed a job. They help with everything—applications, onboarding, travel, even finding a place to stay. Some fill you in on what to expect at a new facility or help you settle into a new town. That kind of backup matters, especially if you’re heading somewhere you’ve never been.
Finding locum jobs online isn’t just about scrolling through endless listings—it’s about finding the places that actually have your best interests at heart. You want more than a basic job board. You want support that makes the whole process smoother, maybe even enjoyable.
Sure, most doctors flock to the big urban hospitals, but honestly, some of the best locum gigs are out in regional or rural spots. Those places are always looking for extra hands, so they tend to pay more and throw in perks like travel allowances and bonuses. Plus, if you’re after real hands-on experience—where you see a bit of everything and actually get to know your patients and team—these smaller communities deliver.
Don’t just scroll past those country towns or out-of-the-way clinics when searching for locum jobs online. You might find yourself somewhere you’d never have thought to go, and end up loving it.
The real beauty of locum work? You can shape your job to fit your life, not the other way around. Maybe you just want a few weeks here and there between steady gigs. Or maybe you’re all in, making locum your main thing.
A lot of doctors use these short-term jobs to test-drive different hospitals or specialties before settling down somewhere permanent. You can try out new places, new teams, maybe even a whole new lifestyle—without losing control of your schedule.
So when you’re looking at locum roles online, zero in on what matters to you. Probably you prefer to spend quality time with your family. Maybe you’re looking to boost your income. Or you just want to break out of your usual routine. Whatever it is, there’s a locum position out there that fits.
With locum work, you call the shots—more freedom, new experiences, and a career that fits your life, not the other way around. Keep your paperwork in order, lean on good recruiters, and use the right sites, and you’ll land gigs that truly work for you.
Ready to see what’s out there? Start your search, and see how ProLocums can make finding your next locum job easy, supportive, and totally tailored to you.
03/17/2026
Before beginning with care delivery, doctors, PAs, NPs, and CRNAs must complete a step-by-step verification to uphold standards without exception.
A decision to pursue locum roles often brings questions. The following eight key points clarify what happens during the verification of qualifications. Some steps depend on institutions, others on licensing bodies. Progress moves faster if responses come promptly to requests. Let’s go through the points one by one.
A patient’s safety begins when those who offer medical services meet established standards. As described by the National Institutes of Health, such verification examines prior education alongside professional experience within healthcare fields. It involves strict review methods meant to uphold quality across treatment settings.
Beginning with verification, locum agencies such as ProLocums confirm details including qualifications, schooling, license status, background in training, alongside hands-on medical practice.
Once filled out, the form records details on academic background, past work roles, permits held, credentials earned - alongside institutions granting clinical access or procedural rights.
At least three professional references will need to be listed, with two being clinicians from your specialty. References must be able to discuss your clinical skills during the previous two years - particularly regarding procedures tied to your next role. A further part of this process involves examining criminal records at the county level.
Once a submission finishes, ProLocums checks credentials through official sources. School records, medical licensing, board credentials, state permits, and federal registrations - all looked up from the original providers. Verification covers training listed under license types, such as drug handling approvals. Direct confirmations replace assumptions every time.
Getting in touch with old employers and clinics that once allowed your practice checks helps prove there were no issues. If a hospital allowed you to work less than half a year ago, yet more than three and a half months, that gets looked at closely. They look at how you handled cases, whether procedures went smoothly, and how you performed on the job.
When it comes to your field or job, extra paperwork might be needed. A good example? Doctors working with kids often need to show they are trained in advanced care for young patients, like PALS certification. You might send extra papers through email, fax, or regular postal mail.
Physician assistants, along with nurse practitioners, follow a distinct path since they join healthcare institutions as staff members. On their first day, they also handle ID checks without delay. Following these processes keeps everything aligned with current laws and clinic standards.
Providers who aren’t US citizens need to show proof that they have permanent residency or a valid work authorization. Keep in mind that some visas, like the H-1B, aren’t accepted for work. If you’re not a US citizen, it’s a good idea to sort out work authorization requirements early on to avoid any credentialing delays.
Once you get credentialed with ProLocums, your approval stays good for two years. You won’t have to go through the full agency credentialing process again during that period. Each new hospital or facility needs its own credentialing because they handle their own primary source verifications. ProLocums makes things easier by filling in hospital applications with your existing information, so you don’t have to deal with a lot of paperwork. The credentialing team handles questions directly with facilities, so you can concentrate on patient care instead of paperwork.
Usually, the online physician credentialing process takes about 28 to 30 days. Talking with each other on time is the main thing that stops delays. Let ProLocums know how you like to be contacted—whether it’s email, phone, or text—so they can get in touch with you fast. You can also help out by letting your references know ahead of time that someone will be reaching out to them. Quick replies from references often help speed things up considerably.
Want to know more about locum as a career option? Contact ProLocums to learn about the opportunities they have and begin your journey with confidence.
02/24/2026
Healthcare looks different now. Hospitals are restructuring. Teams are shifting. Roles are opening up. And if you are anything like me, you are getting more calls from recruiters than ever before. Every time my phone rings, I’m reminded of how many locum roles are out there. Different states. Different hospitals. Different setups. Some for a short duration. Some for a longer duration. Some tempting.
That naturally leads to one question. Is this the right time to attempt something new? That’s when you need to find locum jobs online.
Locum tenens simply means temporary physician. The phrase literally translates to placeholder. In real life, it means stepping in to cover shifts until a hospital hires someone permanent. Sometimes that gap is short. Sometimes it lasts months. There are digital healthcare staffing agencies like ProLocums that focus only in recruiting locums. They are easy to find. I’ve worked with one of the bigger ones myself, in two different states.
Now let’s talk about what this actually feels like.
I never signed a contract longer than six months. That matters more than you think. If you are burned out, unsure, or just tired, locums gives you space. You commit for a few months. When it’s over, it’s over. No guilt. No pressure to stay. For me, it was a way to try something new without blowing up my life.
You might not land in your dream hospital. But you can almost always land in your dream region. Mountains. Ocean. Big city. Small town. Desert. Somewhere you have never been. A short assignment tells you a lot about how the hospital runs. What are the people like? Living there might actually feel like.
Coworkers are usually honest. They will tell you which neighborhoods are safe. Where not to live. Which schools matter? What gets old fast. It’s like a test drive.
Sometimes it’s not medicine that wears you down. It’s the system. Same broken workflows. Same delays. Same frustrations. Working somewhere new forces you to reset. You see how other places do things. Some better. Some worse. But always different. It also helps you figure out something important. Is the problem your hospital? Or is it the work itself?
This was one of the positive aspect for me. If I said I couldn’t work certain days, that was respected. When the contract ended, there was no awkward exit. You finish your shifts. You move on.
You usually get the days off you ask for. But the shifts themselves? Not great. You are temporary. You are expensive. And full-time staff come first. That means nights. Weekends. Swings. Over and over. It’s expected. Still frustrating.
Working nights also makes exploring a new place hard. If you want extra days to enjoy the area, you often pay out of pocket for housing or car rentals.
At first, it feels exciting the moment you get a locum job via digital healthcare staffing agency. New airport. New city. New hotel. Then months go by. Packing. Flying. Working a block. Flying back. Repeat. If you’re using locums to decide where to live next, think of travel as an investment. It may save you from making a bad move later.
Every hospital does things differently. Even a six-month assignment can feel confusing for the first few months. You’re learning workflows while trying not to slow anyone down. It gets easier with time. You start asking better questions. You adapt faster. Still, it can be frustrating.
Sometimes it’s a good reason. Growth, development, and there could be sudden number spikes. Other times, not so much. The general reason is high turnover, poor leadership, and broken systems. Hence, follow the steps:
Locum doctors don’t always get a warm reception. Some staff resent the pay difference. Others assume you don’t care because you are temporary. You only get one first impression. Be a team player. Work hard. Show up. Still, not everyone will be happy to see you. That’s part of it.
Locums is not perfect. But it can be incredibly useful. It lets you explore new places, new systems, and new roles without locking yourself into something permanent. I would do it again. The benefits, for me, outweighed the downsides. If you go in knowing the risks, you actually have very little to lose. Sometimes, a temporary change is exactly what you need.
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