Q: Hello, Dr. Margolies. I have a question that I am sure you would be able to answer for me. First of all, I have a so-so practice that I'm barely hanging onto. I can't complain, though, because I was finally able to get Something going, at least. I need something more substantial than the office I have now and plan to move to a larger city. My question is this -- what do I need to do to legally be an Independent Contractor, and what are the advantages/disadvantages to being an IC as opposed to an associate? A: Thanks for the e-mail. First .. you must define the difference between a classical associate and an IC. An associate is an employee .. getting a set salary and a job decription .. with bonuses it may work out fine. You don't need to have an overhead .. inventory .. staff .. it's all owned by the doctor who owns the clinic. An IC is a renter. You rent the facility or a room and often the equipment. There are so many version of IC contracts that it is difficult to provide sound advice until I see one. Usually the contract favors the owner not the IC. For instance .. one of my interns now is an IC with a local DC. There is a $500 a month rental fee and 50% of collections. Some other student had IC's in his office and charged a $1200 a month rental fee and all collections was kept by the IC. There are 50/50 and 60/40 in either favor as well as subtle changes of this percentage once the IC reaches a certain level of collections. They vary so much and often .. as mentioned .. but not often in favor of the IC. Therefore .. question is .. do you wish to be an employee .. an employer or an independent contractor. The headaches and expenses of running a business is reduced considerably as an associate .. if you can find a position. The stress of making it but keeping it is the advantage of the IC or owner .. less so as far as overhead as an IC .. but always unable to take it with you if you wish to move or sell as an IC .. at least more hassles built in. In your case .. you are looking for financial and emotional stability .. at least for the immediate future. A larger city may provide more opportunities but also more competition As far as legality .. you are independent and need your own federal ID number .. separate books and accounting .. your own malpractice insurance and contracts with insurance companies. You just rent space. Therefore .. some arrangement must be made about drop in patients .. or call in new patients .. often IC's have their own telephone lines and even CA's. Have a Great Day Dr. M