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The Fundamentals of A Professional Micro-Corporation

Nov 09, 2024

A reader recently contacted me with an intriguing and common question:

What exactly is a micro-business?

In this post today, I will review my answer to his question, explore the concept of micro-businesses and provide comprehensive coaching insights to help clarify this topic!

Micro-Corporations for Physicians

At SimpliMD, when I talk about a "micro-corporation," I am referring to a highly adaptable, single-member professional business designed for doctors who want to take control of their careers by practicing independently. These businesses are typically lean, often having no employees beyond the physician-owner and requiring minimal overhead costs.

The key feature of a micro-corporation is its simplicity: it operates without the need for a traditional office space and allows you to provide professional services as a contractor in location dependent sites as well as diverse location-independent options such as telemedicine or consultative work. In today’s evolving healthcare landscape, having autonomy and flexibility are crucial to your professional satisfaction and financial growth.

The beauty of this micro-business model is that there's no one "right" way to practice medicine anymore. I’ve seen firsthand the many creative ways physicians are reshaping their careers to fit their lives, rather than fitting their lives around their careers. Newer self-employment options like telemedicine, direct primary care (DPC), concierge models, hybrid options like employment lite and locums, and even adding unique services to traditional independent private practice are all paths that can lead to personal and professional fulfillment.

The possibilities are endless, and the right path is simply the one that leads to the life you want. And that is one of the most powerful messages for you to gather from this post.

In today’s marketplace, unlike any other time, you have the agency to job stack in order to create the lifestyle that you prefer.

The Fundamental Elements of a Single-Member Physician Micro-Corporation

A micro-corporation is a streamlined business model designed for single-member professionals who want more control over their careers and to enjoy the financial benefits of operating as a business owner. For physicians like yourself, this can be especially appealing as it enables you to shed the constraints of large healthcare organizations, reduce administrative burdens, and ultimately, work on your terms. Let me break down the core elements of a physician micro-corporation and explain how it can revolutionize how you practice medicine while also embracing the endless possibilities of career reshaping.

1. Single-Member Ownership

You have several single-member business structure options to consider. The most straightforward option is a sole proprietorship, followed by various unincorporated and incorporated structures. Incorporation is what I most commonly recommended for doctors because it offers liability and asset protection. However, it's important to understand that this protection does not replace the need for malpractice insurance, since a micro-corporation does not shield you against risks associated with professional services.

At its core, a micro-corporation such as a PC/PA or PLLC is a professional corporation with one owner, you as the physician. The structure allows you to operate under the legal framework of a corporation, providing the tax and liability benefits of corporate ownership without the complexities of large-scale business operations. This simplicity allows the you to focus on patient care and the diversification of your professional services, with the administrative tasks either being outsourced or minimized through technology.

Advantages of Single-Member Ownership:

Simplicity in Management: As the sole owner, you maintain full control over all business decisions, which can range from whom you contract with to setting fees to determining your hours and patient load.
Streamlined Finances: Unlike group practices, there’s no need to navigate revenue-sharing agreements or complex compensation models. All earnings belong to you after covering basic business expenses.
Tailored Practice: Whether it's adopting a telemedicine model, doing locums one weekend a month, or incorporating alternative therapies, micro-corporations give you the freedom to mold your practice according to your vision. In this context, no professional micro-corporation is exactly like another, it is totally unique to you.

2. No Employees

One of the hallmarks of a micro-corporation is that it operates without any employees other than yourself. This is ideal for physicians who want to avoid the hassle of managing a staff, handling payroll, or dealing with HR concerns. In fact, the only administration of the business that you have to manage are the outsourced services you choose to contract, such as accounting, legal, or administrative support.

This lean approach not only simplifies day-to-day operations but also significantly reduces overhead. Without the need to pay salaries or benefits, you can maximize your personal income while maintaining a high degree of flexibility.

Key Benefits of Having No Employees:

Reduced Overhead: Beyond yourself, there are no salary, healthcare, or retirement benefits to manage, which keeps your business expenses low. But you will have to determine what to pay yourself annually as well as source your own benefit plan. Don’t worry, these items are easier to do than you think--even though most doctors fear doing it.

Read More:
Increased Flexibility: You can work solo or easily outsource administrative tasks without long-term commitments. I typically recommend having a professional team to support your micro-corporation and those team members typically include legal, accounting-tax, business coaching, and wealth management professionals.
Scalability: Depending on need, you can hire contractors or virtual assistants on an as-needed basis for your micro-corporation, adapting to changes in workload without overcommitting financially, nor employing your help.

3. No Physical Office or Building

Traditionally, physicians have been tethered to office spaces, contributing to the significant overhead costs of owning or leasing medical facilities. However, in a micro-corporation, you can operate without a physical office, which is especially common in the digital age. Advances in telemedicine and other remote solutions allow you to practice medicine from virtually anywhere. Many of you are now practicing location-independent medicine, working from your home or while traveling.

By shedding the need for a brick-and-mortar office, you can reduce your financial and logistical obligations. Additionally, this location independence increases work-life balance, allowing you to better integrate your professional and personal lives.

Advantages of Being Location Independent:

No Real Estate Costs: Eliminating the need for an office building saves thousands annually.
Work-Life Balance: You now have the flexibility to work from anywhere, whether it’s from home, a co-working space, or even while traveling.
Creative Career Flexibility: By being location-independent, you can shape your practice to include other income streams, such as telemedicine, consulting, or offering remote specialty services.

4. Revenue from Professional Services

In a micro-corporation, revenue is generated through your professional services, and the options are as varied as the physicians themselves. Whether providing direct patient care through telemedicine, running a concierge service, doing locums, employment lite, or offering consulting services, you can tailor your work to fit the model that best suits your interests and expertise. This diversity of options ensures that you can align your revenue generation with your desired lifestyle.

Some are exploring innovative services like remote chronic disease management, home visit platforms, Direct Primary Care (DPC), or niche telemedicine specialties. Others combine legal consulting with medical practice or offer second opinions via digital platforms.

Revenue Opportunities in a Micro-Corporation:

Telemedicine: You can conduct consultations, follow-ups, and diagnostic services entirely online, often setting their own fees and schedules. Or you can join an existing telehealth platform and contract out your services in an Uber like fashion.
Direct Primary Care (DPC): A growing number of doctors are choosing subscription-based DPC models, offering unlimited primary care services to patients for a monthly fee.

Read More: The Rise of Direct Primary Care
Concierge Medicine: Here you offer highly personalized care, often for higher-income patients, charging a premium for round-the-clock access.
Consulting & Expert Testimony: You can also monetize their expertise through consulting for other medical professionals, legal teams, or startups.

5. Work Flexibility and Location Independence

One of the most enticing aspects of a micro-corporation is its inherent flexibility. You are no longer tied to specific locations, rigid work hours, or employer-dictated schedules. The rise of telemedicine has made it possible for you to see patients remotely, allowing you to practice from any location with an internet connection. Moreover, location-independent models are giving many doctors the freedom to travel, relocate, or work around personal obligations, without sacrificing income.

How Location Independence Empowers Physicians:

Global Reach: You can serve patients from across the country or internationally, depending on licensing.
Work on Your Terms: You have full control over when and how you work, avoiding burnout and allowing for meaningful career changes.
Job Stacking: Many micro-corporation doctors are leveraging part-time contracting jobs including locum tenens work, and consulting gigs to create a balanced and diversified income stream.

6. Tax Benefits and Asset Protection

A micro-corporation offers significant tax benefits and legal protections. You can deduct a variety of business expenses, such as home office costs, travel expenses, continuing education, and professional development. Structuring the practice as a corporation separates personal assets from business liabilities, reducing personal risk in the event of litigation.

Important Financial Considerations:

Self-Employed Tax Deductions: You can take advantage of numerous tax deductions, including health insurance, retirement contributions, and professional expenses.

Read More:
Legal Protections: The corporate structure shields personal assets from lawsuits, offering peace of mind in today’s litigious environment.

7. No One Right Way to Practice Medicine

Perhaps the most important aspect of a micro-corporation is that it enables you to break free from the notion that there is a single “right” way to practice medicine. I’ve seen physicians embrace creative, non-traditional models like Direct Primary Care (DPC), concierge services, telemedicine, and even niche specialties that cater to a specific patient demographic.

There’s no need to fit into a rigid model where you must conform to standard clinic hours or insurance-driven practices. The possibilities are endless, and every path is valid if it leads to the life you want. A micro-corporation is simply the vehicle for achieving the career that suits your personal and professional aspirations.

Taking Action: Next Steps for Your Micro-Business

A physician micro-corporation provides the ultimate blend of autonomy, flexibility, and professional satisfaction. It allows you to reshape your career, embrace new models of care, and practice medicine on your terms. There’s no one right way to practice medicine anymore—only the path that fits your vision for the life you want.

Ready to take the next step in your journey as a micro-business owner? SimpliMD is here to support you with personalized consultations and a wealth of resources designed specifically for physicians.

Creating a Practice Without Walls

Don’t miss my course, “Creating A Practice Without Walls,” where you’ll learn how to establish a micro-corporation that gives you agency in the marketplace. This course provides practical insights and strategies that empower you to shape your career on your terms. Sign up for this evergreen course today and take the first step toward building the practice of your dreams.

Utilize SimpliMD’s Business Plan Bundle

Additionally, consider leveraging SimpliMD’s Business Plan Bundle This suite includes a comprehensive SimpliMD Business Plan Template specifically crafted for self-employed doctors, a Micro-Corporation Budget Template that will save you hours of time, and a SWOT analysis template that will help you optimize your business planning. Each of these resources is designed to streamline your processes and enhance your efficiency as a micro-business owner.

Now is the time to take action. Whether it’s booking your personalized consultation, enrolling in my course, or utilizing our business plan bundle, the time to invest in yourself is now. Don’t wait for opportunity to knock—build the door yourself!