Travel Nurses: Working Through An Llc?

Travel nursing is a rewarding career that offers nurses the opportunity to explore new places while advancing their careers and earning competitive salaries. Travel nurses are typically hired on a contractual basis to fill staffing shortages at healthcare facilities, and they enjoy a high degree of flexibility in choosing their assignments and work environments. While the role provides many benefits, it also comes with certain complexities, particularly regarding taxes and independent contracting. This has led to questions about whether travel nurses can work through their own limited liability company (LLC).

Pros and cons of working through an agency vs independently

Travel nursing is a great career option for nurses who enjoy travelling to different places and adding challenge and variety to their job. Travel nurses work with a staffing agency or independently to find and complete temporary contracts in a variety of locations.

Working with an Agency

Pros

• Agencies can negotiate higher wages and provide access to jobs that pay extremely well.
• Agencies can find placements that suit your strengths, preferences and experience.
• Agencies can help you obtain your license and even pay the licensing fees.
• Agencies can provide resources, such as listings of hospital positions, and help with housing and travel arrangements.
• Agencies can offer benefits packages similar to what staff nurses receive, such as health and dental insurance, tuition reimbursement and sick pay.
• Working with multiple agencies can increase competition and allow nurses to foster relationships with multiple recruiters.

Cons

• Agencies may not offer benefits packages, meaning nurses have to purchase private insurance and may be eligible for government aid.
• Nurses may not have as much opportunity to become part of a team and form meaningful relationships with coworkers.
• Working with multiple agencies means more paperwork and spreading your energy across different relationships.

Working Independently

Pros

• Nurses can choose their own schedule and work the number of hours they desire.
• Nurses can have a flexible schedule and choose when and how much they work.
• Nurses can gain a wide range of experiences and training, which can increase their professional opportunities.

Cons

• Nurses have to independently arrange travel plans, insurance, housing and other logistics.
• Nurses may experience time change adjustments, cultural and language barriers, and personal medical issues.
• Nurses receive varying pay for each contractual position, which can make budgeting difficult.
• Nurses have to frequently search for new contracts and interview as a new employee for each one.
• Nurses need to obtain licensure in each state they practice in.

Overall, the pros and cons of working through an agency versus independently depend on an individual's preferences and career goals. Some nurses may value the higher wages and support of an agency, while others may prefer the flexibility and independence of working on their own.

Tax implications of being an independent contractor

Independent contractors are treated as businesses by the IRS, meaning they can deduct all business-related expenses from their taxable income. This includes reimbursements, per diems, and stipends, as well as other costs such as housing, meals, phone bills, internet, computer, and mileage.

However, as an independent contractor, you will need to make quarterly estimated tax payments, including income, Social Security, and Medicare taxes. You will also be responsible for paying the self-employment tax, which covers Social Security and Medicare payments typically made by the employer.

Additionally, you will need to register your business at the federal, state, and possibly county or local level. You will also need to keep a detailed account of all income and expenses for tax purposes.

It is important to note that as an independent contractor, you will not have taxes withheld from your paychecks, and you will be responsible for paying the full amount of your Medicare and Social Security taxes.

Furthermore, as a travel nurse, you will need to be mindful of the tax implications of working in multiple states. You will need to file a federal return and a state return if your home state levies an income tax. Additionally, you will need to file a non-resident tax return for any other state in which you worked during the year.

To summarise, while being an independent contractor offers some tax advantages, it also comes with additional responsibilities and costs that should be carefully considered.

Requirements to be a travel nurse

To become a travel nurse, you must meet the same educational and clinical requirements as registered nurses (RNs). Here are the key requirements to become a travel nurse:

• Education: Earn either an Associate Degree in Nursing (ADN) or a Bachelor of Science in Nursing (BSN). The BSN provides a higher level of training and is preferred by many agencies and healthcare systems.
• Licensure: Obtain your state nursing license by passing the National Council Licensure Exam for RNs (NCLEX-RN).
• Clinical Experience: Gain at least one to two years of clinical nursing experience. This is a requirement for most travel nurse agencies and ensures you have the skills to work independently in various settings.
• Certifications: Maintain the same commonly required certifications as other nurses, such as Basic Life Support (BLS) and Advanced Cardiovascular Life Support (ACLS). Additional certifications in areas like emergency nursing or critical care can enhance your qualifications.
• Adaptability and Communication Skills: Travel nurses need to be adaptable and possess strong communication skills to integrate quickly into different work environments and teams.
• Flexibility: Be prepared to work in different locations, either locally, nationally, or internationally, and be open to varying assignment lengths, typically ranging from a few weeks to several months.
• Agency Selection: Choose a reputable travel nurse agency that suits your preferences for locations, assignments, salary, benefits, and housing arrangements.

It's important to note that travel nursing may involve additional logistical considerations, such as applying for licensure in different states or countries, depending on your assignments. Additionally, travel nurses often need to manage their own housing arrangements and may incur additional expenses during their assignments.

Differences between travel RNs and travel NPs

While travel RNs and travel NPs share some similarities, there are several differences between the two roles in terms of licensing, scope of practice, work settings, payment structure, and job responsibilities.

Licensing

One key difference between travel RNs and travel NPs lies in the number of licenses required to practice in different states. Travel RNs typically need to obtain only one license per state, and the process can be relatively quick and easy, especially if the state is part of the Nurse Licensure Compact (NLC). In contrast, travel NPs often need to obtain two to three licenses per state, including the RN license, the Advanced Registered Nurse Practitioner (ARNP) license, and sometimes a prescribing license. As a result, the licensing process for travel NPs can be more lengthy and complex.

Scope of Practice

The scope of practice for RNs and NPs varies by state. RNs generally carry out orders given by physicians, NPs, or physician assistants, while NPs may have more autonomy. In some states, NPs are granted full practice authority, allowing them to work independently. In other states with stricter laws, NPs may be required to have a practice agreement with a physician and be subject to supervision.

Work Settings

Travel RNs and travel NPs also differ in the types of settings they typically work in. Travel RNs often work in acute care settings within hospitals, including various floors such as the ICU, ER, medical-surgical unit, PACU, and OR. On the other hand, travel NPs have a more diverse range of clinical settings to choose from, including schools, doctor's offices, community health centers, hospitals, military bases, home health, retail clinics, veteran's clinics, and more.

Payment Structure

The payment structure for travel RNs and travel NPs also varies. Travel RNs are typically paid a weekly stipend that includes hourly pay, tax savings, incidentals, and meal and housing allowances. They are usually paid as W-2 employees. In contrast, travel NPs are often paid an hourly rate and may receive a daily per diem for driving their own cars. Housing arrangements for travel NPs are typically paid directly to the landlord or hotel. Travel NPs can be paid as W-2 employees or as 1099 sole proprietors. While travel NPs may not receive direct meal stipends, they can deduct a significant portion of their meal costs in their taxes.

Job Responsibilities

The job responsibilities of travel RNs and travel NPs also differ due to their varying levels of education and clinical authority. RNs typically work under the supervision of physicians, NPs, or physician assistants, and their duties may include administering medications, monitoring patients, recording patient symptoms, assisting doctors during exams and surgeries, and providing emotional support to patients and their families. On the other hand, NPs have a higher level of autonomy and are permitted to prescribe treatments, order tests, and diagnose patients. NPs may also have more responsibilities in creating treatment plans and coordinating care with other healthcare professionals.

How to get started as a travel nurse

To get started as a travel nurse, there are a few key steps to follow. Here is a detailed guide to help you get started:

Understand the Role of a Travel Nurse:

Before embarking on this career path, it is important to comprehend the nature of travel nursing. Travel nurses work for independent staffing companies that recruit RNs to fill positions across the United States and even abroad. They address staffing shortages and fill temporary gaps when nurses take vacations or leaves. Contracts can vary in length, and travel nurses have the option to extend their stay or move on to new opportunities.

Obtain the Necessary Education:

To become a travel nurse, you need to earn a nursing degree. You can pursue an Associate Degree in Nursing (ADN) or a Bachelor of Science in Nursing (BSN). Some agencies and employers may prefer candidates with a four-year degree, so a BSN can enhance your employability. Ensure that you enrol in an accredited nursing program to meet the educational requirements for travel nursing.

Pass the NCLEX and Become a Registered Nurse (RN):

After completing your nursing degree, the next step is to pass the National Council Licensure Exam (NCLEX-RN) exam. This exam is a prerequisite for becoming a registered nurse in the United States. Once you pass the exam and meet the state board of nursing requirements, you will be eligible to practise as an RN.

Gain Clinical Experience:

Most travel nurse staffing agencies require a minimum amount of clinical experience. You will typically need to spend at least one to two years working as an RN in your specialty area before applying for travel nursing positions. This experience will not only enhance your skills but also make you more competitive when applying for travel nursing roles.

Obtain Required Certifications:

In addition to your RN licence, you will need to obtain certain certifications to work as a travel nurse. Basic Life Support (BLS) and Advanced Cardiac Life Support (ACLS) certifications are typically mandatory. Depending on your specialty, you may also want to pursue additional certifications, such as Certified Emergency Nurse (CEN) or Certified Critical Care Nurse (CCRN), to increase your qualifications and marketability.

Apply for a Compact Nursing Licence:

To work as a registered nurse, you must be licensed in the state where you will be practising. The Nursing Licensure Compact (NLC) allows RNs to hold a single nursing licence that is valid in multiple states. Check if your state is part of the NLC, and if so, obtain this multistate licence. If your state is not a member, you will need to apply for a licence in the state where you plan to work.

Find a Travel Nurse Staffing Agency:

Once your education, experience, and credentials are in place, it's time to find a reputable travel nurse staffing agency. Utilise online rating services, lead generation websites, and referrals from colleagues to identify potential agencies. Compare the benefits, alliances with healthcare networks, geographic areas served, and specialisations offered by each agency to make an informed decision.

Complete the Application Process:

The application process for a travel nurse position is similar to applying for a full-time staff role. You will need to submit a tailored resume, highlighting your licences, certifications, clinical experience, and any relevant skills. Be prepared for interviews, and don't hesitate to ask questions to clarify any concerns or gather more information about the opportunity.

Get Ready for Your First Assignment:

After successfully completing the application process and being matched with an organisation, start preparing for your first assignment. This includes finding suitable housing, either provided by the organisation or arranged independently. Stay organised and maintain open communication with your agency to ensure a smooth transition into your new role as a travel nurse.

Embrace the Travel Nurse Lifestyle:

As a travel nurse, you will have the opportunity to work in different settings and meet new people. Embrace the variety of record-keeping systems and electronic medical record (EMR) systems used by different hospitals. Stay adaptable, flexible, and open to learning as you move from contract to contract, gaining a wealth of experiences and skills along the way.

Remember, becoming a travel nurse requires dedication, a strong educational foundation, and a willingness to embrace new challenges. By following these steps, you'll be well on your way to starting your exciting career as a travel nurse.

Frequently asked questions