Starting A Private Practice In Counseling Checklist

Starting a private counseling practice requires careful planning to ensure legal compliance, financial stability, and ethical practice. Use this checklist to guide you through the process.

1. Business Setup & Legal Requirements

✔ Choose a business structure (Sole Proprietorship, LLC, PLLC, or S-Corp)

✔ Obtain a state license to practice counseling

✔ Register for an EIN (Employer Identification Number) with the IRS

✔ Open a business bank account to separate personal and business finances

✔ Apply for required state and local business licenses/permits

✔ Set up a bookkeeping and accounting system (consider hiring an accountant)

✔ Determine tax obligations (self-employment tax, quarterly estimated payments, etc.)

✔ Obtain malpractice/professional liability insurance

✔ Consider general liability and cyber liability insurance

✔ Draft consent forms, intake paperwork, and practice policies

✔ Establish HIPAA-compliant record-keeping and data storage

✔ Create a plan for client emergency situations and mandated reporting

2. Office Setup & Operations

✔ Choose a practice location (home office, leased office, or shared space)

✔ Furnish and decorate the space for a welcoming, professional feel

✔ Set up a reliable scheduling and practice management system (EHR software)

✔ Obtain a secure business phone number and voicemail

✔ Set up a HIPAA-compliant email service

✔ Establish secure teletherapy options (if offering virtual sessions)

✔ Develop a professional website with service details and contact info

✔ Create a Google Business Profile for local search visibility

✔ Choose a secure payment processing system (credit card, HSA/FSA, invoicing options)

✔ Set your session fees and policies (including cancellation/no-show fees)

✔ Decide whether to accept insurance, private pay, or both

✔ If accepting insurance, enroll with panels and verify credentialing requirements

✔ Draft a business budget, including office rent, software, insurance, and marketing costs

3. Marketing & Client Acquisition

✔ Define your niche and target clientele

✔ List your practice on Psychology Today, TherapyDen, and GoodTherapy

✔ Optimize your website for SEO (search engine optimization)

✔ Develop a social media presence on LinkedIn, Instagram, or Facebook

✔ Network with local physicians, schools, attorneys, and therapists for referrals

✔ Join local and national professional organizations (ACA, APA, state boards)

✔ Offer free workshops, community talks, or blog content to establish credibility

✔ Create a referral system and establish relationships with trusted colleagues

✔ Encourage satisfied clients (if ethically appropriate) to refer others

✔ Consider running targeted Google or social media ads to attract new clients

4. Ethical & Clinical Best Practices

✔ Adhere to the ACA Code of Ethics and HIPAA regulations

✔ Keep informed consent and confidentiality policies up to date

✔ Develop a crisis management protocol for high-risk clients

✔ Stay within your scope of practice and seek supervision/consultation when needed

✔ Maintain detailed, confidential, and legally compliant session notes

✔ Follow required guidelines for record retention and secure storage

✔ Prioritize self-care and set professional boundaries to prevent burnout

✔ Engage in continuing education to maintain licensure and stay updated on best practices

5. Financial & Risk Management

✔ Maintain malpractice and cyber liability insurance coverage

✔ Track income and expenses for tax deductions and business planning

✔ Set up an emergency fund to cover practice expenses during slow periods

✔ Offer sliding scale fees or pro bono services (if part of your practice model)

✔ Regularly review and adjust fees to reflect market rates and expenses

✔ Ensure financial security with disability insurance in case of illness/injury

6. Contingency Planning & Professional Will

✔ Designate a Practice Executor to handle affairs in case of sudden incapacity or death

✔ Draft a Professional Will with instructions on client referrals, records management, and business closure

✔ Store all important business documents securely and grant necessary access to the executor

✔ Inform a trusted colleague or family member where contingency documents are located

✔ Consider using TheraClosure, a professional executor service, to ensure ethical and smooth practice closure if needed

Final Thoughts

Starting a private practice is both exciting and challenging, but having a structured plan ensures a smooth process. This checklist provides the foundational steps needed to launch and grow a successful counseling practice while maintaining ethical and legal integrity. Take it step by step, and your private practice will be on its way to success!

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