Regular and contract work tax tip / is LLC the answer ?

Question

I am a Nurse practitioner with a regular salaried state job , i also am beginning to work some contract shifts on weekends and afterhours.
The income from my contract work is expected to match my income from my regular job , and i may end up grossing 200K.
Should i for a LLC for the contract work.
Also i heard CA does not allow professionals to form LLC.
How best to save some taxes?

Answer 1

The information already provided is exactly right but there is one additional item. Some states require certain professionals to form a special type of LLC. Most states call it a Professional LLC but there are few other names as well. These rules usually apply to lawyers, doctors, dentists, architects, and CPAs but you'll need to check your state statute to see who is covered and which term they use. It operates the same way but may leave you open to personal malpractice claims pursuant to the rules of the applicable profession.

Answer 2

You won't save any taxes with an LLC. The sole purpose of an LLC is to limit access to your personal assets as a result of torts from your business. In the medical professions it may be worthwhile due to the likelihood of litigation.

Consult with an attorney for further advice.

I can't imagine that CA won't allow professionals to form LLCs. That's who was in mind when the concept was developed. My dentist and family physician are both LLCs.