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The Business of
Freelancing
Jeremy L Stanley, CFP®
President & Founder
CRNA Financial Planning®
www.crnafinancialplanning.com
Securities offered through LPL Financial Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and CRNA Financial Planning are separate entities from LPL Financial.
•19 Years – CRNA-specific
•AANA Member Advantage Partnership
•Clients all over the U.S.
•Advisors affiliated with LPL Financial – largest
independent broker/dealer*
*As reported by Financial Planning magazine, June 1996-2014, based on total revenue.
Message from our
attorneys
Nothing in this presentation is intended as legal,
accounting, tax or market advice and cannot be relied
upon for any purpose without the services of a
qualified professional.
E- Myth Principal
The E-Myth (“Entrepreneurial Myth”) is the mistaken
belief that most businesses are started by people with
tangible business skills, when in fact most are started
by “technicians” who know nothing about running a
business. Hence most fail.
What’s your skill set…business or anesthesia?
The Business of
Freelancing
• What is Freelancing?
• How is it different from my current job?
• What do I need to consider?
• How much does it cost to get started?
• Pros/Cons
• Next steps?
Types of CRNAs
• Those who go in to the same place, park in the
same spot collect a paycheck and go home
• There are CRNAs who are more business
minded who may look to accept more risk
• Somewhere in between
14% CRNAs are currently independent
contractors*
*http://www.beckersasc.com/anesthesia/6-statistics-on-crna-and-nurse-anesthetist-compensation-
and-eployment.html
Why Freelance?
What do you want out of life?
Be in CONTROL!!
Make more $$
Pros
• Potential higher hourly rate
• Scheduling flexibility
• Potential to save more for retirement
• Potential business expenses and possible tax
deductions
• You don’t have to give up your W2 job!
• CONTROL
Cons
Finding work?
How do I run a business?
Cost Considerations:
• Incorporation filing fees
• Legal setup fees
• Professional insurances (liability, malpractice,
etc)
• Current benefits (life, health, 401k match,
disability, FICA, etc)
The difference is significant…
A Commercial
Interlude
Had a bad day?
Do you feel alone and abandoned?
Are you convinced nobody cares about you?
Do you thinknobody cares about yourfailures in life orin business?
Are you sure nobody sees your successes and failures?
And nobody cares if you live or die?
You are wrong!
There is somebody VERY interested in everything you do…
When everybody else quits on you.....,
We never stop thinking of you!
•Payroll Tax:
1.45% Medicare
6.2% Social Security ($118,500)
– FICA 15.3%
Over $200,000 .9% (ACA)
After Tax cost assuming 33% Bracket= $15,417
($6,185 Additional)
W2 Employee 1099 Contractor
Med: 1.45% = $1,885 Med: 2.9% = $3,770
Soc Sec: 6.2%= $7,347 Soc Sec: 12.4% = $14,694
Total: $9,232 Total $18,464*
130k Salary
Calculating an Hourly
Equivalent Rate
W2 Employee Hourly
• $135,200/ Yr $65.00
• 401k match ($4056) $1.95
• Health Ins ($7200) $3.46
• Dis Ins ($1800) $.87
• Malpractice Ins ($2800) $1.35
• PTO (3 weeks $7800) $3.75
• FICA Match ($9232) $4.44
Total $80.82/ Hr
*Based on 2080 hours per year
$130k Salary
• W2 Deductions?
• Alternative Minimum Tax
• What is it?
• How does it affect me?
• 1099 Deductions?
• Business Expenses
Automobile Expenses (2 ways)Section 179 expense
Annual MeetingsOffice Expenses
Meals & Entertainment
Incorporation: The incorporation process forms a
business, non-profit, or club into a new legal entity that is
recognized independently of its owners. By forming a
new organization, the original owners generally receive
protection of their personal assets. By becoming its own
person under the law, a corporation can exist beyond its
original owners, giving it durability.
Sole Proprietor
C Corporation
S Corporation
LLC/PLLC
• Seek out your respective Secretary of State
and file required state documents on your own.
• You can seek legal help from a trusted attorney
or law firm
• Use self directed services such as Legal Zoom
Great….Now What?
• Find and choose a name that is available and complies
with the corporation rules of your state.
• Prepare and file the formal paperwork.
• Create and put in writing the corporate "bylaws" that
will lay out how your corporation will be run and
managed.
• Obtain any licenses or permits that you need in order
for your company to conduct its business.
• Contact an Anesthesia Placement Service
• Seek out and apply on job posting sites such as
gaswork.com
• Develop relationships with facility or group
• Contact CRNA FP
Most Common
• SEP IRA
• Solo 401(k)
What are the differences and why
one over the other?
SEP-IRA Solo 401k
Who can contribute? Employer only Employer contributions
and employee deferrals
Employer contribution
limits
For 2015, up to 25% of
the compensation or
$53,000
For 2015, employer plus
employee contribution
limit is $53,000 ($59,000
if the employee is age 50
or older).
Employee contribution
limits
*Small Business Retirement Plans – SEP-IRA vs.
Solo 401(k) february 25, 2013 by roger wohlne
None- Employer ONLY $18,000 for 2014. An
additional $6,000 for
participants 50 and over.
SEP vs Solo 401k
Example $130,000 salary
SEP
Employer Contribution (130,000 x 25%) = $32,500
Solo 401k
Employee deferral $18,000 (Over 50= $24,000)
Employer contribution (130,000 x 25%) = $32,500
Total $50,500
E- Myth Principal
The E-Myth (“Entrepreneurial Myth”) is the mistaken
belief that most businesses are started by people with
tangible business skills, when in fact most are started
by “technicians” who know nothing about running a
business. Hence most fail.
What’s your skill set…business or anesthesia?
Securities offered through LPL Financial Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and CRNA Financial Planning are separate entities from LPL Financial.