Managing A Professional Micro-Corporation: Building Your Team

This post originally appeared on Dr. Incorporated on October 21, 2022 and has been edited for SimpliMD

Starting a Professional Micro-Corporation (PC) is the beginning of your journey into small business ownership, but the ongoing management is where things can get complicated. This complexity often discourages physicians from launching their own PCs, as many feel that they don’t have the time or desire to manage a business. After all, when you sign a traditional employment contract, you're typically opting for the safety and simplicity of not having to manage a medical business. You're entering a "deal" that lets someone else handle the administrative burden while you focus on practicing medicine.

In the traditional private practice model, this makes sense, and it's why many physicians choose employment. However, what if there was a way to have the best of both worlds? A model where you don’t have to manage an entire clinical practice but still maintain control over your own financial and professional interests through a micro-PC? This is what we call the “PC-employment lite” model.

What is the PC-Employment Lite Model?

In this model, you don't have to manage the day-to-day operations of a medical practice—no HR issues, no dealing with compliance, and no third-party economic risks. All you manage is yourself and the personal-professional interests of your micro-PC. It's streamlined, personal, and lets you focus on your work without the complexity of running a full-scale practice.

But here’s the key to making it work: building a support team that collaborates with you and each other, so your PC is structured, managed, and optimized for both your professional and personal financial goals.

And this professional support team is critical for any self-employed doctor whether you operate in a practice with walls, or have a virtual medical practice that operates “without walls”.

Time and Money: The Doctor's Dilemma

For many of you, time is the most precious commodity. With your high earning potential per hour, it makes sense to outsource tasks like mowing the lawn, but it’s also tempting to delegate more complex responsibilities, such as the management of your micro-corporation. While outsourcing is often wise, the challenge is finding professionals who not only understand doctors but who also work together as a cohesive team to provide the best advice for your micro-PC.

One of the most significant risks is assembling a team that works in silos, providing advice that is not aligned and can often contradict each other. Without a unified team approach, you may end up receiving legal, accounting, and financial advice that confuses more than clarifies.

The Importance of a Unified Professional Team

There are three crucial members that every physician running a micro-PC should have on their team: a lawyer, a CPA, and a wealth manager. Each plays a unique role, but the magic happens when they work together to provide you with a clear, integrated strategy.

1. The Lawyer: Your lawyer is responsible for ensuring that your PC is legally compliant and structured in a way that protects your personal assets and limits liability. They will help with contracts, employment agreements, and any legal hurdles that come with running a business. Most of you won’t need a long-term engagement with someone, rather you will have periodic project based work that is fee for service. The key is having someone who knows and understands you and someone you can trust.

2. The CPA: Your CPA ensures your taxes are managed efficiently and helps you take advantage of deductions, credits, and financial strategies that keep more money in your pocket. They are vital to ensuring your business complies with tax laws, while also minimizing your tax burden. You can choose to do your own bookkeeping (my wife does ours) or you can outsource to your accountant as well.

3. The Wealth Manager: This person helps you plan for the future, aligning your business and personal financial goals. They will ensure that your income and business profits are invested in a way that builds long-term wealth, considering both tax implications and risk management strategies. I personally love Earned for this type of work because they focus exclusively on doctors.

The Problem with Silos: A Case Study

Let’s take a look at an all-too-common scenario:

Dr. Smith runs a successful micro-PC but is frustrated by conflicting advice. His CPA suggests he reinvest a large portion of his income into the business to reduce tax liabilities. His wealth manager, however, advises him to put those funds into long-term investments for retirement. Meanwhile, his lawyer warns him about liability exposure and suggests creating more legal entities to protect his assets. Dr. Smith is overwhelmed and confused by the advice that seems to contradict itself, leaving him unsure of how to proceed.

Each professional was doing their job well—but in isolation. They weren’t communicating, and as a result, Dr. Smith ended up with fragmented advice that didn’t fit together into a cohesive strategy. The result was confusion, inefficiency, and a lack of clarity on what was best for him both professionally and personally.

A Team That Works Together: The Power of Consensus

Now, imagine a different approach. Dr. Smith hires a professional team that works from the same playbook. His lawyer, CPA, and wealth manager meet regularly and communicate openly about his goals. They align on how to protect his assets legally while also optimizing his taxes and building wealth for the future. Each professional understands the broader picture and how their role contributes to Dr. Smith's success.

With everyone working together, Dr. Smith receives advice that is integrated and actionable. He no longer has to choose between contradictory recommendations. Instead, his professional team collaborates to give him a comprehensive strategy that works in his best interest. His business thrives, his taxes are optimized, and his long-term wealth is on track. Most importantly, Dr. Smith feels in control and confident about his financial future.

The Power of a Comprehensive Professional Support Team

The reality is that professionals who work in silos will only give you part of the picture. It’s essential to have a team of experts who collaborate and are familiar with the specific needs of physicians. This is why I created SimpliMD—a service designed to connect you with a team of professionals who work together to help you get the most out of your micro-PC.

SimpliMD's micro-business consultation for only $99 will guide you to the right professionals—those who don’t just work in silos but instead collaborate to develop a cohesive plan that supports your personal and professional goals. This is not about minimum compliance; it’s about maximizing the value of your micro-corporation and using it to its full potential.

Take Control of Your Future

You don’t have to go it alone. SimpliMD offers the guidance, structure, and support you need to build a successful micro-PC while maintaining control of your professional life. With our course, “Creating a Practice Without Walls,” you will learn how to create a micro-corporation that provides you with agency in the marketplace, putting you in the driver's seat of your career.

Ready to start? Sign up for our micro-business consultation and take the next step in gaining freedom and control over your professional life. For just $99, SimpliMD will help you find the right team that understands physicians and works collaboratively for your success. Also, check out our course “Creating a Practice Without Walls” to learn how to build and operate your micro-PC while keeping your autonomy intact.