Choose a Legal Structure to Set Up a Medical Practice
When starting a healthcare practice, whether you're a physician, dentist, therapist, or other licensed professional, you can't just pick any business structure. Most states require licensed professionals to form either a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC), depending on the services you provide and the rules in your state.
It's surprisingly common for new practitioners to skip formal incorporation altogether, but doing so can create unnecessary risk. Forming a professional entity gives you liability protection, tax advantages, and a more credible presence with patients and insurers. If you're unsure which structure fits your needs, here's a breakdown to help you get started.
Step 1: Develop a Business Plan
Every successful medical practice starts with a solid business plan. Your plan should outline the type of care you'll provide, your target patient base, expected startup costs, revenue projections, and short- and long-term goals. It also helps clarify your strategy and can be useful when seeking financing or partnerships down the line.
Step 2: Choose a Legal Structure to Set Up a Medical Practice
Most states require licensed professionals to form a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC). These structures offer liability protection while complying with regulations for licensed service providers. The right choice depends on your state laws, how many owners the practice has, and your tax preferences. Standard LLCs and corporations typically aren't allowed for licensed healthcare providers.
Why Your Medical Practice Needs This Legal Protection
While setting up the correct foundation for your practice won't protect you 100% from liability, it does offer a medical practice a lot of benefits. You'll be better protected from lawsuits, pay less on taxes, and establishes credibility with your patients. Get the groundwork for your practice established now! Form an LLC with the help of our experts who make it easy to file your documents so you can return to perfecting your recipes to share with the world.
Step 3: Obtain Necessary License and Certificate to Start a Medical Practice
Before you can open your doors, you'll need to secure the appropriate licenses and certifications. This includes your state medical license, a National Provider Identifier (NPI) number, and possibly a DEA registration if you'll be prescribing medication. Some states may also require facility licenses or zoning approvals. Getting these in order early helps prevent delays in launching your practice.
Step 4: Secure Financing for Your Medical Practice
Startup costs for medical practices can be high, especially when factoring in equipment, staffing, and office space. Whether you're funding the business yourself or applying for a loan, having clear financial projections will help you get the support you need to move forward confidently.
Step 5: Find a Location to Start Your Medical Practice
Location is key to attracting and retaining patients. You'll want to choose a space that's accessible, zoned for medical use, and large enough to support your team and services. Think about nearby competition, parking availability, and how close you'll be to your ideal patient population.
Step 6: Obtain Malpractice Insurance for Your Medical Practice
Malpractice insurance protects you from legal claims that could arise from patient care. It's a necessary safeguard, no matter your specialty. Be sure to choose coverage that fits the type of medicine you practice and the risks involved.
Step 7: Set Up Your Medical Practice Infrastructure
Your practice needs the right tools and systems to function smoothly. This includes medical equipment, office furniture, and electronic health record (EHR) software. You'll also need billing systems, scheduling platforms, and communication tools to support both staff and patients from day one.
Step 8: Market Your Medical Practice to Attract Patients
Even the best-run practices need marketing to grow. Build a simple website, claim your online listings, and start connecting with potential patients through referrals and local outreach. A small investment in marketing goes a long way toward building trust and visibility.
Step 9: Ensure Compliance and Stay Current with Healthcare Regulations
Healthcare practices must follow strict regulations to stay in good standing. This includes HIPAA compliance, proper recordkeeping, and regular training for staff. Keeping up with changes in state and federal requirements will help you avoid fines and disruptions.
Step 10: Plan for Growth in Your Medical Practice
Once your practice is up and running, take time to think about the future. You might expand your services, hire more staff, or open another location. Having a long-term plan helps you make smart decisions now that support sustainable growth.
Conclusion: How to Start a Medical Practice the Right Way
Starting a medical practice takes careful planning, but it's completely doable with the right structure and support in place. From selecting the right entity to setting up your systems, each step builds a strong foundation. When you're ready to form your PLLC or PC, MyCorporation is here to help make the process easy.
