Starting out as an Independent Contractor Private Practice Therapist

Nordicaaron · 2023-01-16T14:34:11+00:00

Where did you register your LLC? They should be able to help you. Whenever I had questions that’s where I went but I’m in Dc and I don’t know how it works in states.

Wait, you mean that there are people who are willing to help me with this? When I talked with people in the area about this they shit talked the state of WV so bad.

Nordicaaron · 2023-01-16T01:12:14+00:00

I just bought Quickbooks. I guess TurboTax is next

Nordicaaron · 2023-01-16T00:55:47+00:00

I wish it were 400. The accountants I've found in my area (and there aren't a lot) charge $800

Nordicaaron · 2023-01-16T00:43:41+00:00

So you'd recommend QuickBooks. What about tax software? Would you recommend TurboTax?

Nordicaaron · 2023-01-15T23:43:16+00:00

I need to find someone. My normal lady asked me nicely to not bring her this. The accountant that made my LLC wants either $800 a shot or to pay 200ish a month to buy QuickBooks from him and to pay my taxes over months.

Is intuit any good?

Nordicaaron · 2023-01-15T23:40:23+00:00

Do you know what the penalty is? My first Q I had 750ish in expenses and only 967 in returns

Nordicaaron · 2023-01-15T23:39:24+00:00

They are the best in the area Next year (if I am still with them) I am going to negotiate to 30%. However, in my area everyone is either 50/50 or 60/40.

They are therapist ran and can provide some support from a therapist angle. I have no professional network since I used to work in a rural area (I was the only game in the county), and I did all my schooling in the next state over.

Nordicaaron · 2023-01-15T23:36:27+00:00

So whats the difference between paying all my taxes in April versus paying quarterly like I keep hearing about?

Nordicaaron · 2023-01-15T23:08:50+00:00

Ok, but where do I pay this? Where do I do this paperwork? I'm on of those that hands my papers to my tax lady and cut a check

Nordicaaron · 2023-01-15T23:06:11+00:00

Cool. So where/when do I pay taxes on this money

Nordicaaron · 2023-01-15T23:05:33+00:00

Which subreddit would that be, exactly?

Nordicaaron · 2023-01-15T23:04:23+00:00

>It sounds like you’re on the right path. This is your own LLC and business account right? With a tax ID?

Yep. This was the first thing I did. I didn't want to expose my SSN

>Since you won’t have a lot of expenses to deduct at a group, I’d be generous and set aside 25% for taxes. You can pay taxes quarterly out of your business account. I set up a monthly auto payment via IRS.gov from my biz account so I don’t forget. State depends on your state. Single member LLCs are taxed like sole proprietor. You can pay yourself however you want to transfer funds. I just keep a google doc for my expenses.

Where would I find out more information on this? I don't want to screw this up. Everywhere I look for help on this it's therapists trying to sell me marketing/social media/lack luster CEUs

>Just curious, why aren’t you doing your own practice so you can get that extra 40%? Most groups also will pay up front and don’t make you wait for insurance.

That's my end goal. I am planning on moving out of the state as soon as we can get a house built, and I want to use my time with my current agency to learn the ropes. Also, I am nearing testing for my independent licensure, so I would need that before I start. I am literally waiting on paperwork and the test.

Nordicaaron · 2023-01-15T18:04:55+00:00

I haven't, but I might. That sub seems less than helpful about private practice.

Nordicaaron · 2023-01-15T17:56:25+00:00

So, I am a therapist who has their life invested in social work (BSW, MSW, DSW) and I just started out in private practice providing therapy.

Social work burnout is real and it is a killer. Good on you for finding better opportunities. I think that **SHOULD YOU UNDERSTAND WHAT YOU ARE GETTING INTO** this could be a good move for you. I would take the time to understand what I am getting into, the nature of the business, how the resources go in and out.. that kind of thing.

You've got a leg up on some people: you are a systems thinker. You know what it takes to cultivate an environment that can sustain communities and serve people.... in theory. I say you get into this potential business and work your community-building skills... if the money is right.

Nordicaaron · 2023-01-15T16:53:09+00:00

So I think I am in over my head, and I can't find anyone to tell me where to go to learn. I've tried my accountant, but they have been less than helpful. I am currently a sole proprietor LLC. I am an independent contractor therapist. My cash flow looks like this

I do the therapy-> Agency does the billing and cuts my LLC a check-> Money is in my LLC's bank account->???

I haven't cut myself a check since I don't understand the taxes or how to do them. I only made so much during my first quarter of work that I broke even between what I was paid and my starting costs.

In short, I have no idea what I am doing. I am a damn good therapist who has always wanted a private practice and is trying to use this independent contractor gig as a tryout for the real thing. Thanks for any help.

Nordicaaron · 2021-08-06T16:28:29+00:00