How to Start a Physical Therapy Clinic: Essential Business Steps

First off, this is a series based on our guide HOW TO START A PHYSICAL THERAPY CLINIC SIDE HUSTLE - THE ULTIMATE GUIDE. You can check it out to learn about all of the aspects of starting a physical therapy clinic side hustle!

Starting a physical therapy clinic can be an exciting venture, especially if you’re passionate about providing top-notch care. However, before diving into the clinical aspects, there are essential business steps you need to take to ensure your practice runs smoothly and remains compliant with legal and financial requirements. Here’s a straightforward guide on how to start a physical therapy clinic by addressing the key business components.

1. Form an LLC

One of the first steps in starting your physical therapy clinic is to establish a legal entity. Forming a Limited Liability Company (LLC) provides personal protection against potential business liabilities. While some states may require a Professional Limited Liability Company (PLLC), the process is generally similar.

You have two main options for forming an LLC:

• Hire a CPA: A Certified Public Accountant (CPA) can handle the formation process for you, ensuring everything is set up correctly. This option may cost more, but it saves you time and ensures accuracy.
• DIY Online: If you prefer to save money, websites like LegalZoom and RocketLawyer offer DIY LLC formation services. Just be sure to review the guidelines carefully to ensure compliance.

Forming an LLC is crucial, especially if you plan to grow your practice into a full-time operation.

2. Review Your Practice Act

Even if you’re not accepting insurance directly, you must comply with state regulations. Review your practice act to understand what you are legally allowed to do. Each state has specific rules and limitations, so it’s important to familiarize yourself with these.

If you’re unsure about any aspects of the practice act, contact your local American Physical Therapy Association (APTA) chapter. They can offer valuable insights and, in some cases, recommend legal experts who specialize in physical therapy regulations. Investing in an hour with a knowledgeable attorney can be highly beneficial to clarify any uncertainties.

3. Obtain Malpractice Insurance

Securing malpractice insurance is essential for any physical therapy practice. While lawsuits against clinicians are relatively rare, having coverage is crucial for protecting yourself from potential claims.

You can obtain malpractice insurance from various organizations, such as Healthcare Providers Service Organization (HPSO) or your local State Farm agency. Ensure that you have coverage before you start treating patients, even if it’s on a part-time basis.

4. Apply for an NPI Number

If you’re already practicing, you likely have a National Provider Identifier (NPI) number. For new graduates, acquiring an NPI number is essential. You can apply for one online at the NPI Registry.

An NPI number is not required if you’re operating a cash-only practice. However, if you plan to incorporate insurance into your practice, you’ll need an NPI for your business.

5. Obtain a Local Business License

Lastly, don’t forget to secure a local business license. Your city and county will require this to ensure they receive their share of your success.

Visit your city tax office to apply for a business license—often, this can be done online. While the fee is typically minimal, it’s an important step to make sure you’re operating legally.

By addressing these foundational business steps, you’ll set yourself up for success in your new physical therapy clinic. With your LLC, malpractice insurance, NPI number, and business license in place, you’re well on your way to establishing a thriving practice. Now, you can focus on what you do best—providing exceptional care to your patients!

If you’re interested in learning more about the process of starting a physical therapy clinic, check out our other resources and guides for additional insights and tips.

Ready to elevate your practice? Book a call at the link below with one of our expert consultants today and start your journey to delivering unparalleled physical therapy.