Practice incorporated!

Today, I officially incorporated our practice online. Each state has their own procedure on how to form a company. Cost $300. When a company is formed, you get what's called a Certificate of Formation. Hang onto this, because it serves as a "birth certificate" of your company.

I advise all optometrists (and other professionals) to form a PLLC. My corporate name is "[Last Name] Family Eye Care, PLLC." I will likely take the S-corp election when I file my taxes. BUT, remember to consult your CPA and attorney regarding tax implications and record keeping rules. In some cases it is advantageous to start off as a sole proprietor, but a pain-in-the-ass to switch to a corporation down the road when you are established. I don't want to go into explicit detail of piercing the corporate veil, etc.. but Google should also help.

This is a good primer on the differences between companies: http://www.themoneyalert.com/Corp-Entity-Table.html

Next, I am applying for an EIN. Think of this as a social security number for your business. It's how the IRS keeps track of you. Luckily, you can apply for this online:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Once you've got the above two steps complete, you're good to go! Congratulations, you have completed the first step to the American dream... you own your own business.

Medicare numbers

I am currently registered with Medicare as a provider, however, since leaving the last practice.. there are rules with how this transfers. Call Provider Enrollment to verify.

You get what's called a PTAN number (individual, and group) anytime you are employed at a practice. These numbers are no longer valid when you: start a different job, start your own office, etc... think of them as one time use numbers that never carry over.

Applying the second time around is easier, according to Medicare, since you're already in their system. What form to use depends on your situation:

• If you are going to be employed again, you just need to fill out Form 855R
• If you are going to start your own practice (where you are 100% owner), fill out form 855I
• If you are starting your own practice with a partner (50, 50 owners), fill out form 855B. Make sure to also apply for a Group NPI number

Since I'll be doing both. Working and starting my own practice I will have to fill out form 855R and 855B with my wife.