You did all this work to start your private practice, but don’t forget the importance of licensing and legalities! Before you start seeing clients, you need to ensure you’re operating within the law. When I started my practice, I found the paperwork daunting, but with the right resources and a mentor, it became manageable.
Here’s your licensing and legalities checklist
Professional License
Ensure your therapist’s license is current and valid in your region.
Business Structure
Are you a one-person show or assembling a group? Decide on a business structure – sole proprietorship, LLC, or corporation. Each has its perks and quirks.
EIN or TIN
Your business needs an identity, so you will go to your specific state’s website and register for your business’s unique tax ID number. This will be either an Employer Identification Number (EIN) or Tax Identification Number (TIN). It’s like your therapy practice’s secret code.
Insurance
Professional liability insurance shields you from potential lawsuits. General liability insurance guards against physical mishaps in your therapy business. I use CPH Insurance.
Get an Electronic Health Record (EHR)
You may want to do paper records, but doing it electronically can be a lot easier. An EHR is a digital system for storing client health information. I use Therapy Appointment, but there are many other great choices.
HIPAA Compliance
You’ll be dealing with health records, so you must adhere to Federal health privacy laws. Look through the Health Insurance Portability and Accountability Act (HIPAA). This ensures the privacy and security of your clients’ health information. Safeguarding client info is your duty.
Informed Consent
Provide clients with an informed consent document. It outlines what they can expect from therapy, their rights, and your ethical obligations.
Client Intake Forms
Think of these as your therapy questionnaire. Collect vital info like medical history and contact details. Your EHR may have templates for you, but edit these to fit your specific practice.
Cancellation Policy
Life happens, so clients will cancel. Spell out your cancellation policy so clients know the drill when they need to reschedule or cancel. (Don’t be afraid to charge a fee for last-minute cancellations or no-shows. Trust me!)
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Release of Information
If you need to coordinate with other professionals, a release of information form allows you to share client info securely.
Supervision Agreement
If you’re under the guidance of a mentor, outline your supervision arrangement in writing.
Business Permits
Depending on your location, you might need city or county permits to operate.
Website and Social Media Policies
If you’re spreading your wisdom online, establish website and social media policies to protect both you and your audience.
Here’s a site that I heard about on a therapist Facebook group that has examples of paperwork you may need.
Remember, while the legal requirements might seem complex, they’re essential steps to ensure your practice runs smoothly and ethically. It might feel like a lot now, but with each step, you’re building a strong foundation for your practice. And remember, you’re not alone in this journey. Reach out, ask questions, and lean on the community. Together, we can make a difference in the lives of many.
Have questions or need more guidance? Leave a comment below, and I’ll be happy to help.
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