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41. Comparing Corporations to Sole Proprietorships in Speech Therapy Private Practice

Not everyone needs to be incorporated to have a business. There are advantages and disadvantages of both situations and in Episode 41, I address these questions and give some examples why each situation may work better for some.
 

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In this episode:
01:42 – Thank you for the good feedback and emails,
02:25 – Home Health and Clinic Based Businesses,
04:27 – All Access Membership community,
05:12 – Thrive Themes for building websites,
05:55 – the Perfect Student
06:10 – Sole Proprietorship vs. an LLC or a Corporation
10:02 – Personal Tax Return vs Business Tax Returns
11:31 – Tax I.D. number
12:37 – Clarity

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Not everybody needs to have or incorporate, because let’s face it if you want to just take cash for a visit and someone’s home or if you have a little office on the site or a place outside attached to your home or in the back there you have a special room for your sessions. I mean you are in business essentially.

[Commercial]

Hello everyone you’re listening to the Speech Therapy Private Practice StartUp Podcast. This is episode number 41. My name is Kyle Meades and I’m a speech pathologist since 1993. And these podcasts are designed to help you improve your business and your life one Podcast at a time.

Welcome back to the show everyone. Thanks again for all the emails and all the questions and as today, today is Sunday July 8th 2018. We have well over 35,253 listeners to the show and I’m super delighted that you guys are out there listening and getting good valuable information and I’m going to say it as always, Value is what you get in the absence of money. And these podcasts are very free for you so if you wouldn’t mind please go to the Android or iOS platform of your choice and please leave me some good 5 star feedback.

I recently got some good feedback from a listener and it was just really nice to see that she’s getting the help that she’s needed to start her own Speech therapy private practice since she’s been at it over a year now and she says she goes back and listens to the podcast, and you get that motivation and information. So it’s just really nice to have you on board. And also if you’re new to the show welcome and I hope you find everything you’re looking for here at the Speech therapy Private Practice StartUp Podcast.

Now what makes this a little bit different is we are managing and running and owning clinics here in Tucson, Arizona. We’ve got two businesses an Outpatient speech therapy and Occupational therapy business; soon to be physical therapy here in Tucson, Arizona. We also have a Home and Community based like a home health type business that we run. And so between both of those businesses we actively employ over 35 full-time, part-time therapists and we see many kids and help adults every single month, so we’re really making a difference.

When I first started the podcast I wanted to get this information out to you guys because what I wanted to start my own business I really couldn’t find anything on the internet about starting or growing your own Speech therapy private practice. I’ve found some PDFs and things like that but it just really didn’t make sense to me so this is my way of giving back to my listener base and just letting you guys know that I appreciate you being out there, listening and supporting me. So I try to give you guys that value that you’re looking for. And not only am I trying to help you guys I’m trying to set and lead by example by actively running multiple businesses here. So that way you can see that I’m not work in other places, I’m work in on the side at a school or a nursing home. I’m running this machine and that’s what I’ve been to for the last 11 years of my life. So I dedicated myself to this. I saved up about eight thousand bucks I think, and I jetted left those nursing homes and said, “Never again”. So this is what I’m doing full-time and I hope you guys learn what you need to learn from me.

And if you want more access, if you want a little bit more guidance and you want behind the scenes in monthly webinars and if you even want a phone call with me on a weekly basis, that’s available. It’s called the Speech therapy all access community and if you’re a privateslp.com/coaching you’ll see the sign up form there. If you don’t see a sign-up form immediately you might see and apply now button. Certain times of the year I have the community open for new members but I really try these days to hand select people that I know will be a good fit. We just did our last webinar while I was traveling and I couldn’t get to my monthly live webinar with others so what I did was I was showing the members how to make a very good High Converting Website for their speech therapy Private Practice business. And I was doing that with some Thrive theme plugins and I’ll leave that link at the bottom of this show so you can see there is an easier way to make websites. If you want to spend extra money you can hire a programmer at upwork or something like that or fiverr.com and that’s a very good way to do it if you’re more hands on. It’s very simple. And judging by the comments in the All Access Community I know that the members who have really enjoyed that video so that was the training this past month and there’s tons of trainings in there so if that interests you just go to privateslp.com/coaching.

And I also want to tell you I have space available for the Perfect Student if that interests you, there’s a link at privateslp.com/coaching for that as well. I got an email recently from a gentleman named Matt and he wanted to know about sole proprietorship vs. an LLC or a corporation. It is a very good question because he is working at a nursing home right now but he also sees kids on the side just private clients. And that’s a great question and it got me thinking not everybody needs to have or incorporate, because let’s face it if you want to just take cash for a visit and someone’s home or if you have a little office on the site or a place outside attached to your home or in the back there you have a special room for your sessions. I mean you are in business essentially. So there’s nothing wrong with being a Sole Proprietor. It’s really nothing special you have to do. You can put all of the money in a separate bank account under your name and you can take that money put it in a separate bank account. You can pay your business expenses out of that separate account or you can actually commingle those funds into your own Personal checking account because again it is not a separate entity or anything of the sort.

An example I have been a Sole proprietor with my real estate since 1999 / 2000. I have purchased Duplexes and Triplexes in my own name and a lot of people say, “Oh, you know you’re going to get sued you’re exposing yourself to increase liability”. Well I’ve had these properties for a long time. And no. 1, treat people well and with respect. And accidents do happen, but that’s what insurance is for. I’ve got liability insurance and umbrella policies. I’ve got the veil going and I got that corporate veil thing going without the corporation.

When I was living in New Zealand I had a personal manager managing four houses in New Orleans uptown there for me. And I remember there was a lady, she ignited the gas water heater in one of the upstairs homes on Pine and Spruce Uptown, New Orleans there by Tulane University. And she made a mistake and she suffered some burn damages. And that was really sad and very scary. I had a licensed plumber come out and look at that water heater. And everything was obviously in code and appropriate and offered to pay some of her medical bills. She didn’t want that she wasn’t one of those types of people who wanted to sue or anything. She just wanted to make sure that that water heater was operational and yes it was. It was a functioning operating water heater. She just tried to light the gas water heater incorrectly. But all that to say this is just another example of exposure and liability. There is always going to be a liability and increased exposure in anything you do. And that right there is what stops a lot of people from taking a job and doing what they want to do for themselves and that’s that comfort zone that people get when they think just work for other people.

Everybody’s an expert these days. Everybody says, “Oh, you know you’re gonna get sued”. Well, I have basically a lady with the water heater incident and I didn’t get sued. I tried to help the lady and I did the right thing because I believe that comes back. I’ve had apartments in real estate for years in my own name. My sources tell me that me as in my sources say that it’s okay if you want to see a few private clients on the side and be a Sole Proprietor. There’s nothing wrong with that. You can check with your lawyer you can check with your CPA in my experience. It’s the same personal tax return you will just show a different schedule which is a different piece of paper on your personal tax return. So for me each property address has its own schedule in my personal tax form and that list the income and the expenses and things like that. So your business and your part time private practice would be something just a different schedule on your tax return. So it’s really simple as my point about all of this rambling because I want you guys to see that it’s not that scary because if you want to have a private practice you’ve got to do something and make that move. You got to get into action and get it going. Because if you don’t 2018 or pass you by 2019, 2020. Next thing it’s over, so get it while you can and start.

Now you can also start a Corporation and that’s okay too. And I’ve talked about that many times before and that’s when you simply incorporate. You can do it online. You can find a paralegal in town. It’s cheap. You have your Articles of corporations. You take that Article of incorporation, you announce it to the world. After you announce it to the world there locally via a newspaper a little ad or something you plotted IRS and get a tax I.D. number. You take all that Article of incorporation in your tax I.D. to the bank, get your separate account and there you go. But now that is a different tax return. That’s not just one page on your personal taxes. That’s more expensive that’s when you have to file a separate tax return with a separate tax I.D. number that entity. Now that’s doable too it just depends on where you want to take it. When I started I didn’t want to see a few people on the site or work from home in my socks and fuzzy socks. And drink coffee and see people on the Internet, and do voice therapy whatever. I just didn’t want to do that. I wanted to start a business, have employees, pay taxes, have a rent, have expenses, take insurances and credentialing bill. A lot of people call it a headache and it’s scary. Yeah it is. It’s a big deal but really if you do it right and if you set it up appropriately from the get go you can have this.

Don’t forget it’s a mind thing it’s like the little boy who would take the baseball hit throw it up, throw that ball, swing that bat and right before he swung the bat he says maybe, “the best batter the United States has ever seen” and he misses it. And then he takes that ball, he throws it back up, he swings and he misses it. As he say, “I might be the best batter the United States has ever seen”. And he takes that ball again, he won’t give up and he throws that ball up and he says to himself, “I will be the best batter the United States has ever seen any swings and he misses again”. And then he takes that ball again and he throws it up and he says, “I may be the best pitcher the United States has ever seen”. That’s motivation and that’s what you got to do. You don’t give up. It’s a mind thing you just change your way of thinking and you do this.

So I hope this has been helpful Sole proprietorship vs. LLC or Corporation, because either way you gotta start so that’s the scary thing for a lot of people. But if you need help that’s why I’m here if you need help with credentialing, we do that too we do billing services as well, privateslp.com/billing. And as always thank you for listening.

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