Resources to start and form your business
Here you’ll find all the resources mentioned in the presentation, along with helpful secondary resources that can guide you through the formation process.
This presentation centered around California, Texas and Washington, however many of the resources are not state-specific and can be used to prepare your filings and guide you through the process in any locale.
- Choosing Entity Type
- What/Where to File
The first task in building your business is to decide which entity type to form. This can be confusing as there are many choices, and also pros and cons of choosing each individual type. In most cases however, a solo or small practice will be formed as a Limited Liability Company (or your state’s equivalent, as names for the same entity type differ sometimes).
An LLC will give you flexibility in both the formation and continued maintenance of your business, but you may wish to review the other entity types as there are instances where a different type will better suit your business.
Small Business Administration
Choose a business structure
The business structure you choose influences everything from day-to-day operations, to taxes and how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits.
More Resources
- APA Practice Organization. (2014). Choosing the best legal structure for your professional practice. Good Practice. https://www.apaservices.org/practice/good-practice/legal-structure.pdf
- GoodTherapy Editor Team. (2020, August 1). Your Checklist for Starting a Private Practice in Counseling. https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/your-checklist-for-starting-a-private-practice-in-counseling
- Jackson, D. C. J. B. D. (2021, October 1). Business Formation for Therapy Practices. GoodTherapy.org Therapy Blog. https://www.goodtherapy.org/blog/Business-Formation-for-Therapy-Practices
- Morgan, J. (2022, December 30). Choosing the Best LLC Type for a Mental Health Professional. Venture Smarter – Business Accounting Services. https://venturesmarter.com/what-form-of-llc-do-i-need-as-a-mental-health-professional/
Once you have determined what type of entity you would like to start, you’ll need to file the appropriate paperwork with the Secretary of State for your location. In most cases this can be done online, and only take a few days for the SoS office to process.
Each state sets its own filing fees for each type of entity. Additionally, if you do not wish to file the paperwork yourself (although it’s very simple), you can hire a business formation service that will file it for you. These firms will complete the paperwork, submit it to the state on your behalf and send you the completed documentation. It usually is priced based upon how much they are doing for you, plus the state filing fees.
More Resources
- Find where to file for all other states here
- Business Formation Services
- LegalZoom (starts at $80 + filing fees)
- Incfile (starts at $0 + filing fees)
- Swiftfilings (starts at $50 + filing fees)
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