Do doctors who are independent contractors have to create an LLC for liability protection?

n general, there are many benefits of establishing your business as a LLC. For eg: personal assets cannot be used for business debts. Also, all contracts and agreements are now between your LLC and the healthcare providers/physician networks etc

From a tax perspective, certainly establishing your LLC as a S Corporation may provide tax benefits. We come across many physicians who either work part time or as contractors or in various management roles & they contract with various healthcare providers. This is a very popular tax classification. As part of this, your company will pay you salary as owner employee, there is no double taxation. This certainly is better than operating a sole proprietor.

However, your situation may be different. So, certainly reach out to tax professionals or CPAs as needed.

 ** Our response to question asked on quora


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