Q: Do I need an s-corp to be a medical transcriptionist in NJ or can I register as an LLC?
I do medical transcribing parttime from home. The group I work with was audited by NJ 5 years ago and fined because the transcribers that live in NJ supposedly need an s-corp license, not an LLC. This applied to only those who live in NJ. Why? I opened an s-corp this year and the cost of running a parttime business as an s-corp in NJ is crazy. I do not earn enough to warrant the cost of an s-corp, especially since I really only want to do this parttime. How can I do this as an LLC in NJ?
A: An "S" Corp is the accountant's best friend and your worst enemy. You need to retain an experienced licensed attorney to custom draft the documents required for an LLC. If you are not at least a 3 member LLC the "corporate veil" that protects you from liabilty can easily be pierced.
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