Check out the timestamps below to help you navigate through the many topics we discussed.
On This Episode:
More and more CRNAs are making the decision to move from a W-2 employee to a 1099 CRNA. Sharon made this move in recent years and is sharing this experience on the podcast to help educate other CRNAs who are weighing the pros and cons. Once you’ve made the decision to go 1099, how do you make sure you’re doing everything right? Today is part two of a three-part session and we’re answering that question to make sure you’re prepared to be a 1099 CRNA. Join us as we provide a comprehensive roadmap to help you navigate the transition smoothly.
When any of us decide to go into business for ourselves for the first time, it’s a different thought pattern. While we might be highly skilled in our trade, we’re not business owners and we don’t possess many of the skills needed to be successful on our own. That’s why setting up your company correctly becomes incredibly important. Transitioning to self-employment requires a different mindset and a solid understanding of business principles, which is why we recommend consulting qualified professionals, such as accountants and attorneys, who are familiar with the CRNA industry to ensure you're on the right track.
One of the key decisions you'll need to make is choosing the right business structure. You’ll want to weigh the pros and cons of sole proprietorships and PLLCs (Professional Limited Liability Corporations). While a sole proprietorship is easy to set up, it offers no liability protection or tax advantages. On the other hand, a PLLC can provide liability protection and, if taxed as an S corporation, can offer significant tax savings.
Once your business structure is in place, the next step is to apply for a tax ID number. This is something you can do online through the IRS website for instant results. You also want to think about opening a business bank account and obtaining a business credit card to keep personal and business expenses separate.
Managing taxes is another critical aspect of being a 1099 worker. To stay on top of this, you’ll want to file quarterly estimated taxes and keep meticulous records of your business expenses. We recommend using software like QuickBooks to track income and expenses, ensuring you categorize them correctly for tax purposes. There’s another layer of complexity for CRNAs who plan to work in multiple states, and we advise CRNAs to register as a foreign entity in each state they work to avoid potential legal and tax issues.
As you can see, transitioning to 1099 work as a CRNA involves several steps and considerations, but with the right guidance, it can be a smooth and rewarding process. Don’t forget that part three is coming soon and that will be centered more deeply around the tax concepts involved for 1099 CRNAs so check back with us.
Here’s some of what we discuss in this episode:
- How should you set up your company and who should be helping you?
- Should you be a sole proprietorship or a PLLC? We’ll give you details on how it impacts taxes.
- What accounts do you need to open up?
- Keeping records for tax purposes and why it matters if you plan to work in different states.
- How you can make your annual meeting a tax deduction for your S corp.
The 1099 CRNA Institute: https://aana.com/1099
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"We've got a good eight years, maybe ten years that things are going to be good, and then it gets murky. You don't know how to kind of gauge where it will be after that. But I would say the next ten years or so are going to be really, really good in the 1099 market."
- Jeremy Stanley, CFP®
