Medical Transcribing as a Business: Questions & Answers

Starting a medical transcription business can be very rewarding but it can also be a little daunting, especially if you don’t have any previous business experience. Unfortunately, a lot of medical transcription courses prepare you for the actual transcription work but don’t offer a lot of help for those who want to start their own MT business.

Here are a few common questions:

 Do I need to register my business?

Not necessarily. You can always start working as a freelance MT and file your own taxes at the end of the year. The downside of working like this is that it can hinder your professional image.

Most small clients don’t mind writing a check to Lisa Jones but if you want to go after bigger accounts it’s important to have a professional image and you should consider registering your business. There are also some extra tax deductions that may apply to business owners.

Do I need to open a checking account?

You can only open a checking account once you have registered your business. The bank will ask for your business license before allowing you to open your account.

Can I hire other people to work for me?

I definitely recommend that you do. As soon as your business starts to grow and you’re getting more work than you can handle is a good time to outsource some of it to subcontractors. Subcontracted MT still work as independent MTs which means you’re not responsible for employee benefits, taxes, etc. You are, however, responsible for providing them with a 1099 form at the end of the year so that they can file their own taxes.

What Should You Do Next?

Recommended:  Click here to learn how to start your own Medical Transcription Business