Do You Need an LLC as a Nurse Practitioner in Telemedicine or Private Practice?

Starting your 1099 journey or launching a private practice? Wondering if forming an LLC is the right move? Here's what you need to know as a nurse practitioner ready to take ownership of your business structure.

When I First Started…

When I first began working as a 1099 nurse practitioner in telemedicine, I didn’t have an LLC. It honestly didn’t seem necessary at the time—I was just picking up contracts and doing the work. But had I known the benefits back then, I would’ve formed an LLC a lot sooner. Even if you aren’t starting a private practice, having multiple 1099 gigs under your belt is reason enough to consider forming a business entity.

In this article, I want you to consider forming an LLC even if you're not launching a formal business. The professionalism, the added safety, and especially the tax advantages—it was a no-brainer for me once I understood the full picture. As I got deeper into the business side of being a nurse practitioner, the real value of having an LLC became clear.

Once I decided to start my own telemedicine private practice, forming an LLC was the obvious next step. And later, as my business grew, switching to an S-Corp structure brought significant tax advantages—a total game-changer.

So What Is an LLC and Why Should Nurse Practitioners Care?

A Limited Liability Company (LLC) is a legal business structure that separates your personal assets from your business operations. For nurse practitioners—especially those working as independent contractors or launching a private practice—this separation can be key in reducing personal liability and enhancing professionalism.

Unlike a sole proprietorship, an LLC offers more formal protection without the complexities of forming a full corporation.

Pros of Forming an LLC as an NP

• Limited Liability: Protects your personal assets if your business is ever sued.

• Credibility Boost: Looks more professional to patients, collaborators, and potential clients.

• Tax Flexibility: LLCs can elect to be taxed as an S-Corp, which can lead to major tax savings (this was huge for me!).

• Easier Business Banking: Opens the door to business accounts, loans, and financial tools that sole proprietors often can’t access.

Cons and Considerations

• Upfront and Annual Fees: Costs vary by state and typically include formation and renewal fees.

• Administrative Tasks: You'll need to keep records, file reports, and maintain compliance.

• Still Need Malpractice Insurance: An LLC doesn't replace the need for appropriate professional coverage.

  
  

Do You Need an LLC as a 1099 Nurse Practitioner?

Not always—but here’s when it might be time:

• You’re earning consistent income through 1099 contracts.

• You're launching your own brand or private practice.

• You want to protect personal assets from business liabilities.

• You’re planning to grow, hire, or offer high-risk services.

• You're starting to think about optimizing your tax strategy.

If you’re just dabbling in 1099 telemedicine, it might not be urgent. But if you’re serious about treating your work like a business, forming an LLC could be a smart, strategic step.

PLLC: A Must for Some Nurse Practitioners

In certain states, licensed professionals (like NPs) are required to form a Professional Limited Liability Company (PLLC) instead of a regular LLC. The key difference is that a PLLC is specifically designed for licensed healthcare providers. Be sure to check your state’s regulations before filing.

LLC Tax Options: Sole Proprietor vs. S-Corp—What’s the Difference?

When you form an LLC, you can choose how you want to be taxed. Most nurse practitioners start off being taxed as a sole proprietor, which is the default for single-member LLCs. This means all of your business income is treated as personal income on your taxes, and you're responsible for paying the full amount of self-employment taxes.

However, as your income grows, you might benefit from electing to be taxed as an S-Corporation (S-Corp)—a status you can choose even as a single-member LLC. With an S-Corp setup, you pay yourself a “reasonable salary” (which is subject to payroll taxes), and any remaining profits can be taken as distributions—which are not subject to self-employment tax.

This can result in significant tax savings.

Now, I’m not a licensed accountant—just sharing from my personal experience. But I can’t stress enough how valuable it’s been to work with someone who is an expert. For me, that’s been Stephanie Heredia of Tampa Tax.

Stephanie has been instrumental in helping me navigate these decisions and feel more confident in structuring my business the right way. I’m not getting any kickbacks or affiliate bonuses for mentioning her—I just genuinely appreciate the guidance she’s provided and how knowledgeable and supportive she’s been. Honestly, I wish I had connected with her back when I was juggling multiple 1099 positions—because I would’ve formed an LLC and elected S-Corp status long before I launched my private practice.

If you want to learn more about S-Corps, she wrote a great article on her website:👉 S-Corps 101 - When an S-Corp Makes Sense for Saving on Taxes

Get Professional Guidance: Stephanie Heredia of Tampa Tax

When it comes to structuring your nurse practitioner business and understanding tax implications, working with a knowledgeable accountant is a game changer. I personally work with Stephanie Heredia of Tampa Tax, and she has been nothing short of amazing.

Don’t let the name fool you—she serves clients across the U.S. If you’re looking for an accountant who understands the world of independent healthcare professionals, I highly recommend reaching out to her—and tell her Telemedicine Chick sent you!

Final Note

Whether you're diving into 1099 telemedicine work or building your own nurse practitioner private practice, treating your career like the business it truly is will open doors you didn’t even know existed. Forming an LLC—or even exploring S-Corp status—isn’t just about taxes or paperwork. It’s about ownership, protection, and stepping fully into your role as a healthcare entrepreneur.

Don’t wait until things get complicated to get structured. Start strong, stay informed, and surround yourself with experts who support your vision.

Your future self—and your bank account—will thank you.

Disclaimer

This blog post is for informational purposes only and does not constitute legal, financial, or tax advice. Always consult with a qualified attorney, accountant, or tax professional to determine what is best for your individual situation and to ensure compliance with state and federal laws.