Setting Up Your Private Practice: A Step-by-Step Guide

So You Want to Start a Private Practice

Transitioning from agency work or an employee position to private practice is one of the most significant professional decisions a therapist makes. It offers autonomy, income potential, and the ability to build exactly the practice you envision. But it also requires careful planning.

Here is a practical step-by-step guide to help you get started.

Step 1: Verify Your Licensure

Before accepting any private pay clients, ensure your license is fully active and in good standing. If you're pre-licensed, check whether your state allows supervised private practice and ensure your supervision arrangement is compliant.

Step 2: Choose Your Business Structure

Most solo practitioners operate as sole proprietors or form a single-member LLC. Consult an accountant or attorney for guidance specific to Florida. An LLC provides liability protection that can be valuable in the clinical field.

Step 3: Get Malpractice Insurance

Professional liability insurance (also called malpractice or E&O insurance) is non-negotiable. HPSO and CPH & Associates are popular options for mental health professionals.

Step 4: Secure Office Space

This is where many practitioners get stuck. Traditional commercial leases require significant capital and long-term commitments that are risky for a new practice. Consider starting with an on-demand model like Khospace, which lets you rent beautiful therapy offices by the hour with no lease and no commitment. As your caseload grows, you can adjust.

Step 5: Set Up Your EHR and Billing

Choose an Electronic Health Records (EHR) platform that meets HIPAA requirements. SimplePractice, TherapyNotes, and Jane App are popular choices. If you plan to accept insurance, you'll need to credentialing process, which can take 60–90 days.

Step 6: Build Your Online Presence

A professional website and a Psychology Today profile are minimum requirements. Consider Google Business optimization, therapist directories, and social media presence to attract clients.

Start Seeing Clients

Once your infrastructure is in place, it's time to start building your caseload. Remember: every practice starts with one client. Be patient, deliver excellent care, and your reputation will do the rest.