That's terrifying! I'm not looking at partnership yet, but what questions should I be asking when the time comes to make sure I don't get blindsided? And should I have both a CPA and attorney review any practice buy-in?

You absolutely should have both a healthcare-specialized CPA and attorney review any practice buy-in agreement before signing. The key questions to ask include: How are accounts receivable valued and taxed? Is the buy-in structured as stock or asset purchase? What's the allocation between goodwill (capital gains tax rate) versus other assets (ordinary income tax rate)? What retirement plan obligations am I assuming? Always get a pro forma tax return showing the estimated tax impact of the transaction before proceeding. Many physicians focus only on the monthly payment amount without understanding the tax consequences, which can sometimes double the effective cost of the buy-in.

This is really important. I got individual disability insurance during residency (cheaper when you're young) with specialty-specific language. My colleague waited until attending salary and not only pays 3x what I do, but had developed mild hypertension by then, resulting in a policy exclusion for any cardiac-related disability. Terrible situation to be in as a surgeon.

Exactly right. Purchasing disability insurance during residency or fellowship is one of the smartest financial moves physicians can make. The premiums are significantly lower when locked in at a younger age, and you're more likely to qualify for clean coverage without exclusions before developing the common health issues that come with age and medical practice stress. The specialty-specific language is absolutely critical. The difference between a policy that pays if you can't perform your specific surgical specialty versus one that only pays if you can't work as any type of doctor can literally be millions of dollars over your career. It's one area where physicians should never cut corners or delay.

You know what, this might be exactly what happened! I just pulled up the previous owner's info from our closing documents and it shows they owned the home for over 30 years. They were definitely senior citizens. So their assessment might have been frozen or reduced for years while property values increased around them?

That's almost certainly what happened then. Many states have "senior freeze" programs that cap or greatly reduce tax increases for elderly homeowners, especially those who've been in their homes a long time. When the property sells, the new assessment reflects current market value without those protections. Your neighbors who haven't had recent sales might still be benefiting from various exemptions or assessment caps that keep their taxes lower. It's not that you're being targeted unfairly - you're just seeing the true current tax rate while others might be protected by various programs. Since you're relatively new owners, make sure you've applied for any homestead exemptions available in your area. You typically need to own and occupy the home as your primary residence to qualify, but it can provide significant savings.

I did my own appeal last year and got my assessment reduced by $32k! Just gathered sales data for similar homes in my neighborhood that sold for less than my assessment value. Photos help too if you have issues with your property (drainage problems, cracked foundation, etc). You def don't need a lawyer for the basic appeal process.

Woah, that sounds complex and potentially expensive. So how do you determine if your foreign LLC is considered a corporation for US tax purposes? Is that something I actively choose or does the IRS decide for me?

By default, a foreign LLC with a single owner is treated as a disregarded entity (essentially a sole proprietorship) for US tax purposes, unless you elect otherwise. If there are multiple owners, it's typically treated as a partnership. You can file Form 8832 to elect corporate treatment if that's beneficial for your situation. The key thing to understand is that the US tax classification might be completely different from how your entity is classified in the foreign country. So your "LLC" abroad might be treated as something entirely different by the IRS. This is why getting proper advice early is crucial - the filing requirements and tax treatment vary dramatically based on the classification.

Yeah, this is a common problem. Many foreign banks don't want to deal with US citizen customers because of the FATCA reporting burdens. I had to shop around in Thailand to find a bank willing to work with my company. Usually larger international banks are more willing to deal with US citizens than smaller local ones.

Thanks for the info. I'll check with some of the bigger banks here. It's super frustrating that being a US citizen makes banking so difficult abroad even when I'm legitimately running a business in another country where I also have citizenship.

Did you need all those licenses even if you were just doing loans to friends and family? Or were you advertising to the general public?

I'm going through this right now! The surety bond was like $1,500 for me - totally didn't budget for that expense when switching my business. And the application process took almost 3 months.

That approach might work for some businesses, but private lending is much more heavily regulated than either graphic design or dropshipping. Banking/lending activities often require specific licenses and registrations regardless of your LLC structure. While the LLC itself might be flexible in its business purpose, certain industries have regulatory requirements that exist separately from business entity rules. Not complying with lending regulations can result in significant penalties, as another commenter mentioned about their $5,000 fine. It's always better to do things properly from the start rather than risk regulatory issues down the road, especially in financial services.

But what about influencers who actually DO use luxury items as part of their business model? Like if your entire content is about luxury cars, wouldn't a Lambo be considered necessary?

That's a good question. For established influencers with substantial income from content specifically about luxury vehicles, there might be a legitimate case. However, the burden of proof would be extremely high. You'd need to show the direct connection between the specific vehicle and revenue generation, demonstrate that the entire vehicle (not just a portion) is used for business, and prove that the expense is reasonable relative to your business income. Most importantly, you'd need to show a history of profitability or a reasonable path to profitability. Starting from zero with a huge expense like a Lamborghini would be extremely difficult to justify to the IRS.

Yeah but how did they prove he wasn't really trying to start a business? Seems pretty subjective to me.