How to Start a Private Practice in Acupuncture
Looking for a start a private practice checklist? This comprehensive guide and start a private practice checklist template will ensure you don't miss a step in getting your business started.
Starting a mental health private practice is an exciting venture—it can represent more impact to your community, more control over your schedule, and potentially, more income. But for many, this dream can turn to dread as questions mount about setting up a private practice.
To help manage stress and keep you on track, SimplePractice has created this free start a private practice checklist with small actionable steps. Use the downloadable start a private practice checklist template as is, or customize it to build the practice of your dreams.
Step 1: Research and planning
Gather information and consult with others
As you are getting started, it can be helpful to gather information upfront to make wise decisions. This can include reaching out to peers for advice, finding an online therapist group, or speaking with past supervisors.
This article and start a private practice checklist should not be considered a substitute for professional legal or financial advice. Consulting with a lawyer and/or a certified public accountant (CPA) can be especially beneficial to help guide your decisions.
There are also many blogs, forums, podcasts, and books from people who offer advice on how to start a private practice.
Check state laws to ensure you can start a private practice
One of the first steps in how to start a therapy practice is to check state laws to ensure that you are allowed to open a private practice, given the current stage of your career and licensure status.
This situation mainly applies to those who are trainees or associates, since some states do not allow unlicensed or pre-licensed clinicians to independently start a private practice.
Ensure your NPI and state licensure are in good standing
In order to set yourself up to run an ethical private practice and protect yourself from legal risks, you should double check that your personal National Provider Identifier (NPI) and state licensure are active and in good standing prior to starting your practice.
Review your finances and estimate your start-up costs
Before you get your private practice off the ground, you’ll want to create an estimate of the amount of money you will need to spend before you start generating income.
Costs may include legal or CPA fees, fees for setting up a business entity, initial electronic health record (EHR) system fees, website fees, marketing fees, and more.
If your financial self-assessment indicates that you are not quite ready to begin the setup process, then this is a good time to make a plan to start saving.
In some cases, you might need to save for a couple of months to a year until you have the start-up costs covered, and then launch your practice—rather than jumping in right away and running out of money before you start making a profit.
Setting up automated monthly or weekly savings withdrawals is the most effective way to hit savings targets.
It is highly important to take an honest look at your current financial situation and your monthly budget. This will give you a sense of where you are now and how much money you will need to make from your private practice.
Then, this will inform other decisions, like whether you will start out full-time or part-time, how many clients you’ll need to see per week, and what your session rates should be.
Step 2: Business essentials
Understand your business structure options
As part of your start a private practice checklist template, you'll need to decide what the structure of your business will be. Choose a business structure that makes sense for your situation.
While LLCs are popular for solo practitioners because they offer liability protection without complex corporate formalities, some therapists opt for sole proprietorships initially for simplicity, then upgrade as they grow.
Verify required licenses and certifications
Make sure you have all the licenses and certifications you need to practice in your state, as requirements vary significantly between states.
Check with your state licensing board about your clinical scope of practice and any business-related requirements. Many states and municipalities require a business license to operate a private practice, and local jurisdictions may require additional permits depending on your location and practice type.
Some states require separate registrations for telehealth services, and you'll need to verify you're licensed in both your state and the state where your client is located when providing telehealth across state lines.
Secure professional liability insurance
Get professional liability insurance to protect yourself from lawsuits. This is non-negotiable when you're operating independently without an employer's coverage.
You need to protect yourself and your assets from potential malpractice claims, which can arise even from well-intentioned treatment. Coverage should typically include both professional liability (malpractice) and general business liability.
Do your research to find liability providers who specialize in mental health professionals, as they understand the unique risks and coverage needs of therapy practices and can help you determine appropriate coverage levels for your situation.
Name your practice
One of the most fun and creative steps in determining how to start your own private practice is selecting a business name. The name you choose for your practice represents you, your work, and the way potential clients come to know you.
Once you have narrowed down your top choices for a business name, search your state’s business name database to ensure that name is not taken. Check with your state’s requirements as well, since you may be required to include certain words in your business name, such as “corporation,” “LLC,” etc.
After you decide on a name that feels unique and on-brand for your practice, you can register the business entity and name with the appropriate authority in your geographic area. You can typically complete this yourself online or with the help of a lawyer, who can file on your behalf.
Get an employer identification number (EIN)
Following the registration of your business entity, it is important to get an employment identification number (EIN). This is a unique identifier for your business that you can apply for through the Internal Revenue Service (IRS) website.
The EIN is used for tax purposes with your entity. It can also be used as an identifier for other business purposes. Having an EIN can protect you from using your personal social security number as an identifier on business documents (especially in the case of sole proprietorships).
Determine your practice location
Since the pandemic—and the resulting increase in telehealth use—many clinicians have gone virtual. When deciding between operating a telehealth practice, providing in-person therapy, or running a hybrid practice, you’ll want to consider what best suits your goals and your client’s preferences.
If you have decided to see clients in-person, you’ll need to search for office space. Look through online listings, network with other therapists, or speak with a local realtor to find the best place for your practice.
Once you find potential spaces for rent, you will want to speak with the landlord and work out the terms of the lease. Prepare for meeting or communicating with landlords by researching what reasonable terms of an office lease are in your area.
If you choose to work from home, you’ll need to establish a quiet, secure space in your home that can facilitate quality sessions and honor client privacy—whether or not you intend on having sessions in-person.
Even if you’re meeting virtually via telehealth video sessions, it’s important that your home office and video background is free of distractions and protects the client’s privacy—make sure sessions can’t be overheard, and no one can barge in during a therapy session.
The fun, and somewhat expensive part of this step, is to be able to decorate and design your office that reflects your personal and professional style, and is conducive to a healthy therapeutic environment.
Consider setting up a PO box
You may want to consider getting a PO box or mailing address other than your home. This can separate your work and home, especially if you are a telehealth-only provider or work out of your home. It will also protect your home address from being published to clients on the internet.
However, some services will only accept an actual physical address, in which case, having an in-person office address can be beneficial.
Step 3: Payment, insurance, and HIPAA-compliance
Calculate your session rates strategically
Set your rates strategically—don't undercharge because you're a professional with valuable skills and years of training. Research what other therapists in your area are charging for similar services by checking directory profiles, calling practices anonymously, or networking with local colleagues.
Your rate-setting should factor in multiple considerations: overhead costs (office rent or home office expenses, software, insurance, marketing), desired take-home income, self-employment taxes (both employee and employer portions), retirement savings, and the value you provide to clients.
When calculating your needed rate, start with your desired annual income and work backwards. Full-time therapists typically spend 20 to 25 hours per week with clients, with additional time devoted to administrative tasks and practice management.
Account for realistic variables like no-shows, vacation time, and the fact that building to a full caseload takes time. If you accept insurance, remember that reimbursement rates are typically significantly lower than private pay rates, which impacts your calculations.
Understand insurance vs. private pay implications
As part of the start a private practice checklist, decide whether you want to accept insurance or go private pay only. This is one of the most important business decisions you'll make.
Private pay gives you more control over your rates, treatment approaches, session length, and frequency without needing pre-authorization or dealing with claim denials.
Insurance can provide a steady client stream and makes therapy accessible to more people, but involves significantly more paperwork, lower reimbursement rates, and potential treatment limitations.
Many successful practices use a hybrid model, accepting some insurance while maintaining private pay slots, or they transition from insurance to private pay as their reputation grows.
Plan for tax obligations
Set aside money for taxes regularly since you'll be paying self-employment taxes (covering both the employee and employer portions of Social Security and Medicare) on top of regular income and state taxes. Your total tax burden will vary based on your income level, deductions, and state, so working with an accountant early on can help you determine the right amount to set aside.
Consider working with an accountant who understands small businesses and healthcare practices, as they can help you navigate deductions for home office, professional development, equipment, and software subscriptions.
Keep detailed records of all business expenses for tax deductions—this includes everything from SimplePractice subscriptions to professional books, conference fees, and even a portion of your cell phone bill if used for business.
Apply for credentialing with insurance companies
If you decide to accept insurance, start researching and applying to become credentialed, aka “paneled,” with the insurance companies that you want to work with. It can sometimes take months to get credentialed and start accepting clients, so start this process as soon as possible.
Set up a HIPAA-compliant email and phone line
You will need a way to communicate securely with clients, coworkers, and vendors—through HIPAA-compliant email, phone lines, messaging, and telehealth hosting platforms. Researching and selecting the right company to manage your secure communication is important.
SimplePractice secure messaging can be used directly with clients for immediate HIPAA-compliant communication. Secure email options include Virtru, GSuite, and Hushmail. Secure phone line options include Phone.com, iPlum, and RingRx.
Set up a business bank account
With your business entity and EIN in place, you can now set up a business bank account. This is important to create a separation between your business and personal finances.
Many people will choose to create a checking account that will receive and make payments, while also having a savings account to set aside a portion of all income for taxes.
Set up an accounting system
After setting up a bank account, you’ll need an accounting system to keep track of your finances.
You may want to hire a bookkeeper or CPA to help set this up or manage it long term.
However, even if finances aren’t your strength and you want to outsource these tasks, it is helpful to know as much about accounting and finances as you possibly can to avoid costly errors. There are many online systems that you can set up to streamline your bookkeeping and accounting, with Quickbooks being one of the most common.
Step 4: Marketing and practice management tools
Create an initial marketing plan
The next step in how to start a private therapy practice? Come up with a marketing plan.
Build your online presence gradually, starting with a simple website and Google My Business listing to establish credibility and local visibility.
Make sure your online presence reflects your professionalism and specialties consistently across all platforms—from your website copy to your directory profile to your LinkedIn presence.
Your brand should communicate clearly who you help and what makes you different from other therapists in your area. This might be your specialized training, your approach to therapy, your target demographic, or your unique combination of services.
Focus on being authentic rather than trying to appeal to everyone, as potential clients connect with therapists they feel will understand their specific situation.
Two of the main questions related to marketing that you'll want to ask yourself are:
How do I want to present myself and my specialties?
How do I best make contact with potential clients that I am seeking?
This can take many different forms. For most, this involves establishing an online presence by creating a website, using search engine optimization (SEO) so clients can find you on internet searches, and creating therapist directory profiles. However, it can involve other channels, such as social media, paid ads, and networking with other health professionals.
Choose the right practice management software
Use practice management software like SimplePractice to handle scheduling, billing, notes, and client communications in one integrated platform.
Good software will automate many administrative tasks that would otherwise consume hours of your time each week—things like appointment reminders, payment processing, insurance claim submission, and secure client communication. Look for HIPAA-compliant software that integrates multiple functions rather than cobbling together different tools, which creates security vulnerabilities and workflow inefficiencies.
SimplePractice specifically designed their platform for solo practitioners and small practices, offering features like telehealth, online booking, automated billing, and mobile access so you can manage your practice from anywhere.
Some of the most tedious administrative tasks for therapists include daily management of scheduling, appointments, billing, and progress notes.
The electronic health record system that you choose is a big determinant in how efficiently and effectively you're able to complete administrative tasks. It's important to invest time into vetting and finding the best EHR for what you need and can afford.
Start setting up a website
One of the first practical steps of marketing your private practice is to begin building a website. Your website will be the homebase for your marketing strategy and where you can direct potential clients. Most marketing channels will point back to your website, so it is key to build your website first.
Create a simple, professional website with online booking capabilities that makes it easy for potential clients to learn about your services and schedule appointments. Your website should clearly communicate who you help, what issues you specialize in, your approach to therapy, and how to contact you. Online booking removes barriers for potential clients who might hesitate to call during business hours and allows you to capture appointments 24/7.
Include essential pages like About, Services, FAQ, and Contact, while ensuring your site is mobile-friendly since many people will find you through their phones. There are many website builders such as Wix, Squarespace, or GoDaddy that can help you set up a domain name and build a site yourself from one of their templates.
Or, you can use a website builder integrated into your EHR—like the SimplePractice website builder, which is easy to use and set up. Consider integrating your SimplePractice client portal for seamless booking and intake processes.
If you don't want to build a website yourself, you can always look for a freelance designer to help you.
Set up online directory profiles
Online directories can be a magnet for potential clients looking for therapy. Having a profile on these directories can greatly increase your access to clients who are looking for your services.
Some of these directories are paid, while others are free.
Examples of therapist directories include Psychology Today, Therapy Den, Inclusive Therapists, and Good Therapy. Certain EHR systems also include a profile listing in a directory, such as the TherapyFinder directory by SimplePractice.
Establish any other avenues of marketing
This is the time to take action on any other areas of marketing you decided to pursue when coming up with your marketing plan.
For example, maybe you join online therapist referral groups, print and hand out your business cards, network on LinkedIn with clinicians in your area, or set up paid advertising.
Whatever your strategy is to connect with potential clients, start implementing those methods to move your marketing into full effect.
Build your professional referral network
Network with other professionals who might refer clients to you—this includes primary care doctors, psychiatrists, other therapists with different specialties, life coaches, attorneys (especially family law), school counselors, and community organizations.
Building referral relationships takes time and consistency, but can become your best source of qualified clients who are pre-motivated to work with you. Always follow up with referral sources, letting them know when you receive a referral and providing updates (within HIPAA guidelines) on the client's engagement.
Consider joining local professional organizations, attending networking events, and offering to provide educational presentations to community groups to build your reputation and referral network.
Step 5: Policies and paperwork
Research and get familiar with local and state laws
In addition to becoming familiar with various business laws, it is essential to get familiar with the legal and ethical standards set by your local governing bodies and relevant licensing boards—so you can stay apprised of what is required of you, not only as a clinician, but also as a business owner.
Knowing the laws and ethical standards will help to shape your practice policies and required paperwork.
Determine your practice policies and create your paperwork
As you develop your knowledge of pertinent laws and ethics, create your practice’s policies and procedures around these guidelines and requirements. For example, ensure you have a process to handle reporting mandates.
Other policies that don’t have legal bearing or clear guidelines still need to be established. One such policy is a cancellation and no-show policy—set violation fees, clearly communicate the terms of the policy, and obtain signed consent to record clients’ compliance.
You’ll also want to have processes in place for preferred modes of communication with clients, emergency communication procedures, and your hours of availability. These measures will help you set expectations with your clients, establish professional boundaries, and facilitate work-life balance.
As you gain clarity on how you want to meet ethical standards in the structure and organization of your practice, create your intake paperwork and other forms that reflect these policies. Some of the main documents you will need to create include informed consent, practice policies, disclosures, privacy policies, telehealth consent, and release of information forms, among others.
Some EHR systems, such as SimplePractice, provide templates that eliminate some of the stress of creating legal documents. Whether you use templates or create your own paperwork, consider having a state-specific lawyer review your documentation.
Connect your EHR and payment methods to your bank account
The next step in the start a private practice checklist is to make sure your EHR and any other payment receipt methods are linked to your business bank account. This will usually be set up in the Settings or Admin section of your payment method. It is important to make sure you are actually getting paid for your work.
Develop your initial contact and intake process
Having a clear and repeatable process for screening potential clients and onboarding new clients will reduce a lot of stress for your practice.
Many therapists offer a free 15-minute consultation call as their first step in this process. No matter how you decide to assess if potential clients are a fit, it is important that you have a standardized system to make bringing in new clients effective and efficient.
Step 6: Your 30-60-90 day action plan
Days 1-30: Build your foundation
Start by getting your legal and financial foundations in place during your first 30 days—this includes business registration, liability insurance, business bank account, and basic record-keeping systems. These foundational elements protect you legally and financially, so they must come first.
During this phase, focus on:
Selecting and registering your business structure
Obtaining your EIN
Setting up your business bank account
Securing professional liability insurance
Consulting with a CPA about tax planning
Researching state licensing requirements specific to private practice
Days 31-60: Set up your technology and marketing
Next, focus on your technology setup and basic marketing during days 31-60. Choose and set up practice management software like SimplePractice, create your website, establish your Google My Business listing, and develop your intake forms and client agreements.
During this phase, complete:
EHR selection and setup (SimplePractice offers a free 30-day trial)
Website launch with online booking
Therapist directory profiles (TherapyFinder, etc.)
Intake paperwork and consent forms
HIPAA-compliant communication systems
Initial marketing materials and business cards
Days 61-90: Launch and refine
Finally, during days 61-90, begin seeing your first clients and refining your approach based on real experience rather than theoretical planning. This phased approach prevents overwhelm while ensuring you don't skip crucial foundational elements that are harder to fix later.
During this phase:
See your first clients and gather feedback
Refine your intake process based on actual experience
Adjust your schedule and availability
Begin building referral relationships
Track your finances and adjust rates if needed
Identify what's working in your marketing and do more of it
Common challenges and lessons learned
Don't try to do everything at once—focus on the essentials first: legal setup, insurance, basic technology, and a simple website. It's OK to make mistakes because every business owner does, and the mental health field is particularly forgiving of practitioners who are authentic about their learning process. The key is to start and then improve as you go rather than waiting until everything is perfect.
Common first-year challenges include underpricing services, overcomplicating intake processes, not setting clear boundaries with clients, and trying to see too many clients too quickly. Most successful private practitioners emphasize that consistency and patience are more important than perfection in the early stages.
Many therapists who have successfully launched their practices share that their biggest regret was not starting sooner. While the process can feel overwhelming, breaking it down into manageable steps—like those in this start a private practice checklist—makes it achievable.
After following all of these steps in the start a private practice checklist, you'll be ready to launch and grow your practice.
Download the free start a private practice checklist template to track your progress on your journey to becoming a private practitioner.
Soon you can begin the important work of supporting your new clients—with the confidence that comes from having a solid foundation in place.
How SimplePractice streamlines running your practice
SimplePractice is HIPAA-compliant practice management software with everything you need to run your practice built into the platform—from booking and scheduling to insurance and client billing.
If you’ve been considering switching to an EHR system, SimplePractice empowers you to streamline appointment bookings, reminders, and rescheduling and simplify the billing and coding process—so you get more time for the things that matter most to you.
Try SimplePractice free for 30 days. No credit card required.
