I have an interest in becoming an independent/contracted pharmacist for a company who will supply me with a 1099 form for tax purposes. I am not an employee of the company and therefore will receive no benefits or tax withholdings from them. I was wondering if I should claim the income as self employed, sole proprietorship or establish an LLC to protect my personal assets. I know if I create a separate business entity like sole proprietorship or LLC I should probably get insurance to extend into the business as well. I know to always carry professional liability insurance to protect me as a pharmacist. Which would be most advantageous tax wise as well as to minimize liability, personal or business?
When (prospective) clients pose this type of question, my typical response is:
Discuss the situation with your tax advisor. Then we can form a legal entity as and if your tax advisor so recommends.
This information does not constitute legal advice and does not establish an attorney-client relationship.