10 Steps to Start Your Own Therapy Practice

A resource from Alyn Wellness

Starting your own practice can feel overwhelming, but it doesn’t have to be. These steps will guide you through the essentials of setting up your business so you can begin serving clients with confidence.

1. Form Your Business Entity

Register an LLC (or other entity type) through your state’s corporation commission. This separates your business from your personal assets and gives your practice a legal foundation.

2. Apply for an EIN

An Employer Identification Number is free from the IRS and works like a Social Security number for your business. You’ll need it for taxes and banking.

3. Open a Business Bank Account

Keep business and personal finances separate from day one. This will simplify bookkeeping and protect you legally.

4. Secure Professional Liability Insurance

Essential coverage for therapists and residents. Plans typically range from $150–$300 per year, depending on your needs.

5. Supervision & Licensure

If you’re practicing under supervision, keep your agreements documented and up to date with your licensing board. This ensures you remain in good standing.

6. Obtain an NPI Number

Your National Provider Identifier is required for billing, EHRs, and insurance panels. Apply through the NPPES website.

7. Choose a Practice Management System

Look for HIPAA-compliant platforms that fit your workflow (we love Jane!). These help with scheduling, billing, telehealth, and notes.

8. Prepare Legal & Clinical Documents

Draft your informed consent, HIPAA policies, practice policies, and intake forms. Customize these to reflect your practice values and client population.

9. Build Your Professional Presence

Create a professional email (ideally with your domain).

Set up a business phone line (Google Voice or Spruce for HIPAA).

Launch a website with your bio, services, and contact info.

10. Plan for Finances & Taxes

Track income and expenses carefully. Consider tools like QuickBooks or Wave, or hire a bookkeeper. Stay on top of quarterly taxes to avoid surprises.

Final Thought: You don’t need to do this all at once. Building your practice is like laying bricks — step by step, you’re creating something solid and lasting.