How Do I Form a Solo Ophthalmology Corporation/Business?

It's so easy and not at all confusing. 

In order to form your legal entity, you need to get an employer identification number (EIN), decide on your corporate structure (e.g. PLLC, S-Corporation, sole proprietorship), and file the relevant forms with the state in which you practice. The second and third steps require an EIN to file, so the first step to forming a business is to apply for a federal employer identification number (EIN). 

An EIN is a lot like a business’s social security number. As it turns out, this is really easy to do and can be done online for your solo practice. If you hate using the Internet, you can apply with other methods as well. Whoever applies for the EIN has to have an individual identification number (e.g. social security number). In you are going to get the help of a lawyer to form your business entity, your lawyer can request the EIN on behalf of your business. With an EIN in hand, you can proceed to determining which type of legal entity you should file as and fill out the filing forms. 

State law determines which type of business entity is able to provide professional services. As a physician, your practice will provide professional services and so the legal structure available to you is determined by what your state allows. This is a listing of professional entity requirements by state - it’s a good starting place, but make sure you check with your state. For example, if you’re starting a practice in Texas, the Secretary of State’s office has a helpful guide and if you’re starting up in Wisconsin you would use the Department of Revenue’s site or the One Stop Business portal. Google is your friend here and will help you find the correct place to register your new business. Frequently, the state department that has guidance about how to register your new business will have guidance regarding the allowed entity type for professional services in your state. 

If multiple types of professional entities are available to you, you should take the time to read about the pros and cons of each one. There are some generalized articles available online, but specific professional recommendations for your specific state are likely to be more valuable (these articles on tax implications & PLLC vs S-Corp are examples). You can, of course, read through the relevant state laws if you have the time and inclination. There are substantial liability and tax implications for you and your business that need serious thought before committing to a specific business entity. 

I am not a lawyer or tax professional so I decided to meet with a lawyer and accountant to have the pros and cons of different business entities for my state explained to me. In general, I’m a firm believer in doing as much as you can personally so that you fully understand everything about your business. However this step seemed pretty complicated to me. In the end, I decided to file incorporation forms with the help of a lawyer. This helped make sure that all incorporation documents (including common stock, structure of board, bylaws, etc) were all done correctly. The last thing I wanted to do is incorrectly file documents on your own and have to correct it later. 

In general, you will need some sort of address in your state to incorporate your business. When I formed by practice, I was living in another state. So I used my attorney’s address as the address of record before I got an office. As soon as I signed a lease on an office, I changed the address over. I would hold off on applying for insurance contracts, hospital privileges, etc until after you have your permanent address if possible. These things are time-consuming to change (many times an insurance company will take 60-90 days to update your address), and it’s better to get it right the first time.