A locum or contractor physician must manage estimated taxes, records, insurance, retirement planning, and possibly payroll or an entity while continuing to practice medicine.
An LLC and an S corporation election solve different problems. State professional-entity rules, liability, recurring net income, payroll cost, reasonable compensation, and administrative capacity all belong in the analysis.
A 1099 physician generally needs a deliberate system for federal and state payments. The system should reflect expected income, withholding from any W-2 job, prior-year information, and known changes.
A solo 401(k), SEP-IRA, defined benefit plan, or another arrangement may fit depending on income, employees, age, cash flow, existing plans, and contribution goals. Plan documents and deadlines matter.
Keep business banking, receipts, mileage or travel support, contracts, continuing education records, insurance, and payroll documentation organized. A deduction needs both a valid tax basis and support.
Translate salary, productivity, benefits, taxes, and contractor costs before the agreement becomes difficult to change.