Addressing consulting income alongside hospital employment

Why the physician was skeptical

An Ohio physician earned hospital employment income as well as income from consulting work. The advisor's submission describes approximately $2.1 million in annual revenue and about $450,000 in taxes paid for 2024.

The physician was initially skeptical that further planning would help. According to the advisor, his accountant had told him the tax bill reflected what he legally owed. The advisor had known the prospect since 2022 and describes more than five meetings over the years before the client proceeded in 2025.

That history is important to the story. The physician wanted a clear explanation of the legal basis for a recommendation before changing how his business income was handled.

The professional team reviewed the consulting activity

The advisor began with discovery and identified the distinction between the physician's hospital W-2 income and his 1099 consulting activity. A tax attorney/CPA was then brought into the discussion.

The submission describes establishing an LLC with an S-corporation election for the consulting activity and developing a retirement-funding arrangement. It also describes a separate LLC for real-estate activity. The advisor reports an annual funding amount of $250,000 associated with the insurance portion of the approach.

These are descriptions of this client's reported planning process. The source does not provide the underlying plan contracts, tax returns or a breakdown showing how each component contributed to the result.

The reported outcome

The advisor reports tax savings of more than $100,000. That reported saving is separate from the $250,000 annual funding commitment. The submission also includes a future cash-value projection, which is not presented here as money already accumulated.

The advisor's description of the pension arrangement and insurance product needs to be reconciled with the actual plan documents before a detailed explanation of that structure is published. The available information is sufficient to describe the sequence of the review, but not to establish the tax treatment of each payment or future distribution.

What helped the client make a decision

According to the advisor, the tax attorney's involvement helped the physician understand the framework behind the recommendation. After several earlier conversations had failed to resolve his concerns, that explanation gave him a basis for proceeding.

For a physician with both employment and consulting income, this case illustrates the value of bringing the income sources and existing business arrangements into one review. A reported outcome from another practice does not determine what a review of your own circumstances will find.