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  • Patricia Reece

Day One: What fresh hell is this?

Welcome to the first post on the blog I have been threatening to write for almost a decade. It should become apparent, fairly quickly, that this is not AI generated text, nor is it written as a preview of an academic article in search of a journal to call home. This will be a space to express the frustrations, joys, and the real outcomes of my sometimes quixotic visions for a private practice run "my way".


There's a letter on my desk from the IRS. It's been there for about a week. When I filed my taxes for this business this year I tried to do it on my own. This is the consequence. 10 x10 - Do Not Recommend.


I'll get into more of the details in later posts, but I ended up in this position because I trusted a service "designed for therapists" to do my bookkeeping and allowed then to hire out for my taxes last year. They couldn't balance my books and told me not to worry about it, they would "make it match". Umm.. no. The same group suggested that moving from a Sole Proprietorship to an S-Corp would be a great idea, save me tons on taxes, and they would even do my paperwork for free. Free is a 4-letter word. Remember that if you take nothing else away from this post.


What they did not do, was file for a new EIN number when they filed my conversion. Apparently this is a thing. Moving from Sole Proprietorship to S-Corp, you need a new EIN. This information was hinted at in page 1,347, paragraph 45, subsection b, when I went to the IRS website to look up what a form was, to answer the question if I had filed it. Oops. Then I looked further and found the following statement:


 

You will not be required to obtain a new EIN if the following statements are true: A corporation files papers with the state to convert to an LLC and will elect via Form 8832 to be taxed as a corporation.

 

My take on the whole thing? I need to make the time to meet with the local SBA (Small Business Administration) and figure out the next steps instead of hurling myself into another quick-fix that will end up with more man-hours spent on figuring out how to provide services then I spend on providing the services. I am a therapist, a researcher, a professor, and on occasion an artist. I am not a business professional. I don't need a MBA, but I do need support from a group I can trust. SBA link going into the professional resources link now.


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