[IDWick]

You dont need a CPA to set up an s-corp. You could set one up through legal zoom.

[stawfeeqmir_666]

Yeah, I noticed several services that will create the LLC and also elect S Corp status. But my understanding is that it pretty much stops there – everyone gets an accountant to file the s Corp return and also help with payroll (even if payroll is outsourced to a service like Gusto).

Just curious if there are any independent contractor rads who would recommend a good but reasonably priced CPA.

I consulted with a firm virtually and they quoted $8k as an annual expense.

[radiologistkahraman_799]

Try Thrive Wise Tax.  I haven’t personally used them, but have heard of others.  
How much do you anticipate saving filling as S corp vs 1099?  Assuming both are contributing max to 401K, correct

[stawfeeqmir_666]

I actually contacted thrive tax a couple days ago and hope to speak with them soon; good to hear others have used them as well. They are listed on white coat investor.

Savings on payroll tax alone compared to sole proprietor approaches $40k. This does not include accounting cost or franchise tax.

If anyone has other accountant Recs feel free to share or message me. Thanks

[stawfeeqmir_666]

Anyone else have an accountant they would recommend – again currently sole proprietor 1099 but switching to become LLC with S-Corp election.  Please feel free to PM me. 

[abd.fawzi_217]

In order to save on payroll tax you’d need to pay yourself a wage of less than the social security limit, 160k. You’re really going to argue thats a reasonable wage for a radiologist?

[stawfeeqmir_666]

Reasonable wage? Im thinking $300k.

[abd.fawzi_217]

That seems reasonable, so you’d save 2.9% on the distributions. That would be a lot less than 40k of savings though, unless you’re telling me you make 1.38 million

[afazio.uk_887]

 
You only save a small amount with this approach, but I guess why not. 

[stawfeeqmir_666]

Do you have a better approach to lower taxes? Other than than saving on payroll with a pass through entity like an S corp. Please let me know, because Im getting hammered!

[stawfeeqmir_666]

Yeah, I make a little more than that hence the reason Im jumping through these hoops

[afazio.uk_887]

 
oh… another SLACman out there? 

[afazio.uk_887]

Not many going to feel too bad for you if you are making $1.4M+ lol.  Just pay the tax and move on with your life. 

[stawfeeqmir_666]

Great advice. Thanks dude

[stlmchenry_510]

Thats insane. What are you getting per RVU?

[stawfeeqmir_666]

Average $30-$35

[radiologistkahraman_799]

I believe you can also use the entity to save on state taxes via the SALT loophole…?

[stlmchenry_510]

And you pay your own malpractice, health insurance premiums etc..? How many vacation days do you take per year?

[stawfeeqmir_666]

I do pay may own health insurance. I dont pay med mal.

I work a set number of scheduled shifts, about 105-110, and the rest of my time is spent per click on a non scheduled basis.

[22002469]

Quote from Waduh Dong

Not many going to feel too bad for you if you are making $1.4M+ lol.  Just pay the tax and move on with your life. 

 
You find something wrong with 45-50k wRVU a year? lol.
 
3-4x a typical PP rad. Yikes….
 

[abd.fawzi_217]

Do you have a cash balance plan? That’s another no brainer if you’re in a high tax bracket. Solo 401k/cash balance plan combo, SALT loophole as previously mentioned, s-corp to take distributions instead of salary, maybe look into short term rentals to depreciate against active income if you really wanna go that far

[stawfeeqmir_666]

Ive been using a sep-ira as a sole proprietor. I have another meeting with a cpa Monday and will bring up your other ideas. I do like the idea of short term rentals. Makes sense. I think I just need to get my feet wet, perhaps find a realtor who is friendly to investors. Which Im not, but I guess have to think that way.

[abd.fawzi_217]

A sep-ira is usually not a good idea for a doctor, especially one who is a sole proprietor, because it neuters the ability to do the backdoor roth ira due to the pro-rata rule. You’d be better served with a solo 401k. I might keep that quiet and ask the CPA if they have any other recommendations. If they don’t pick up on that nuance i don’t think they’re that good and I would find another.

[stawfeeqmir_666]

Will do.
 
Do you have a number in your head that you would consider reasonable to to pay an accountant – lets say over a year – for this type of service?
 
I spoke with a medium sized group about a month ago but it just seemed too expensive.  They charged a monthly fee which came out to $8k for the year. 

[afazio.uk_887]

 
You read 40k plus RVU per year?  

[didoisheer_164]

I’m in a very similar situation to you financially. I decided to take the plunge and go with an accountant who charges ~$20K per year. That is with the expectation that he would get me >$300K in tax savings per year.
 
I’ll see how it goes since this is my first year with him.
 
Before this, I created a defined benefit pension plan to maximize tax savings, which cost about $2-3K per year for actuaries to run. 

[ebshanon]

For those of you with defined benefit plans, how much do you put away every year and who is the custodian (schwab?)

[didoisheer_164]

The actuaries do a yearly calculation to let you know how much you can put away. They say minimum of say $150K to max of $250K. If its a down market and stocks are performing poorly, you’ll get a higher min and max because the goal is to reach a target annual “pension” when you retire. Also the plan has a component made up of an annuity/life insurance policy, which has a set annual contribution around $70K or so. I wouldn’t do a defined benefit plan unless you can commit at least 5 years of this type of annual savings. 
 
The 401K component of your defined benefit plan is ideally run by a smaller, preferably local, financial planner, rather than a national company like Schwab, since you’ll get more personalized attention and a contact that can answer your questions.

[radiologistkahraman_799]

Quote from mskrads

  I wouldn’t do a defined benefit plan unless you can commit at least 5 years of this type of annual savings. 
 

 
People keep saying this.  Please explain.  Sure, right now someone can make this happen.  If tele (for instance) were to dry up in 2 years and we have to abort, what gives?  Honest question… can’t you just shut it down?