How to Start a Private Practice: A Complete Checklist

Launch Your Dream Private Practice with Confidence

Skip years of research and costly mistakes with this comprehensive, step-by-step checklist created by a practicing therapist. This complete roadmap covers everything from licensing requirements to insurance credentialing, HIPAA compliance to marketing strategies. Get the insider knowledge you need to build a thriving private practice that serves clients well while protecting your professional reputation.

8-page Instant PDF checklist download • 8 comprehensive phases • Save thousands in attorney fees

You can also bundle this checklist with my “Complete Package” of required forms for an even greater value (and even less time and attorney fees on your end). And, if you get stuck even with this in-depth outline, you can also purchase a coaching package from me, also on my Therapy Marketplace profile.

This isn't generic advice—it's battle-tested guidance from a successful private practice owner who understands the unique challenges and opportunities in the healthcare landscape. Every item on this checklist has been carefully researched and validated through real-world experience.

8 Complete Phases to Practice Success:

Phase 1: Self-Assessment & Readiness

• ✅ Education and licensing requirement verification
• ✅ Professional development essentials (CPT codes, ICD-10-CM, billing processes)
• ✅ Business skills assessment and readiness evaluation
• ✅ Realistic expectations for the isolation and independence of private practice

Phase 2: Legal & Business Structure

• ✅ National Provider Identification (NPI) application guidance
• ✅ Federal tax requirements (EIN setup, quarterly tax planning)
• ✅ Michigan-specific business registration information with LARA
• ✅ Legal structure selection (LLC vs. PLLC considerations)

Phase 3: Office Setup & Operations

• ✅ HIPAA-compliant office space requirements
• ✅ Essential technology and equipment selection
• ✅ EHR system recommendations (including Simple Practice trial link)
• ✅ Staffing considerations and 1099 vs. employee classification

Phase 4: Insurance & Third-Party Billing

• ✅ Insurance credentialing step-by-step process
• ✅ Medicare and Medicaid specific requirements
• ✅ Billing setup and reimbursement rate negotiations
• ✅ Professional vs. self-billing decision framework

Phase 5: Practice Management & Policies

• ✅ Complete internal documentation requirements
• ✅ Client-facing document templates (references attorney-approved forms)
• ✅ Fee setting strategies and financial management systems
• ✅ Quarterly tax planning and bookkeeping setup

Phase 6: Marketing & Practice Development

• ✅ Branding and target market identification
• ✅ Professional website and SEO strategies
• ✅ Referral network development across multiple sectors
• ✅ Networking activities and professional community building

Phase 7: Specialized Considerations

• ✅ Telehealth legislation compliance (example: Michigan insurance code 500.3476)
• ✅ Group practice contract considerations and legal protections
• ✅ Interstate licensure requirements and limitations

Phase 8: Ethical & Legal Considerations

• ✅ Billing ethics compliance (Section 3.05 requirements)
• ✅ Risk management and licensing protection strategies
• ✅ Professional consultation and supervision arrangements

Exclusive Michigan-Specific Insights:

Legal & Regulatory Guidance:

• Michigan Department of Licensing and Regulatory Affairs (LARA) requirements
• State-specific telehealth laws and cross-border practice limitations
• Michigan insurance code compliance for mental health services
• Professional Limited Liability Company (PLLC) advantages for licensed professionals

What Makes This Checklist Invaluable:

💰 Save Thousands in Professional Fees

• Avoid costly attorney consultations with pre-researched legal requirements
• Prevent expensive compliance mistakes that could jeopardize your license
• Skip months of research with organized, actionable steps

⏰ Accelerate Your Timeline

• Clear phase-by-phase progression prevents overwhelm
• Simultaneous task identification saves months of sequential work
• Realistic timelines for insurance credentialing and setup processes

🛡️ Professional Protection

• Ethics compliance guidance protects your license and reputation
• Risk management strategies prevent common pitfalls
• Professional liability and documentation requirements clearly outlined

📈 Business Success Framework

• Market research strategies for competitive positioning
• Financial management systems for sustainable growth
• Marketing and referral development for consistent client flow

Perfect For:

Licensed Mental Health Professionals:

• Any mental health professional ready to transition to private practice
• Clinicians currently in agencies considering private practice
• Professionals relocating to Michigan from other states

Practice Expansion:

• Solo practitioners considering group practice models
• Clinicians adding telehealth or specialized services
• Professionals updating their practice for current regulations

Bonus Resources Included:

• 🔗 Direct links to essential applications (NPPES, IRS, CAQH)
• 📚 Professional resource recommendations and reading list
• 🤝 Networking and professional development opportunities
• 💡 Insider tips from successful Michigan private practice owners

Technical Details:

• Format: Comprehensive PDF checklist (printable and digital-friendly)
• Length: Complete 8-phase roadmap with detailed sub-tasks
• Insights: Delivers practice business intelligence you can apply immediately
• Compatibility: All devices (optimized for both screen viewing and printing)
• Specific: Based on current Michigan regulations and best practices

Investment in Your Professional Future:

This checklist represents years of research, professional experience, and costly trial-and-error compressed into one actionable resource. Instead of spending months researching requirements and potentially making expensive mistakes, you'll have a clear roadmap from day one.

Typical Cost of Starting Private Practice:

• Attorney consultations: $300-500/hour
• Business setup mistakes: $1,000-5,000+
• Delayed credentialing: Months of lost income
• This checklist: A fraction of one attorney consultation

Important Note: . Individual circumstances vary, and professional consultation is recommended for complex legal, financial, or clinical decisions.

Your successful private practice journey starts with this single download. Get the roadmap that transforms overwhelm into organized action.