To start a therapy practice in Florida, follow these seven steps: 

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1. Check local zoning regulations
2. Register a business name
3. Choose a business structure
4. Register your business
5. Obtain relevant licenses
6. Get insurance
7. Start paying taxes

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If you’re moving your practice from a different state, there’s an eighth step you’ll need to follow: Figuring out how to pay taxes in multiple states.

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This article covers the bare essentials needed to get your therapy practice up and running in the Sunshine State. For advice on budgeting, marketing your practice, and billing your clients, check out our general guide, How to Start a Therapy Practice.

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Check local zoning regulations in Florida

Florida boasts 67 counties and 411 municipalities. Before you settle on a location for your therapy practice—even if that location is your own home—you must make sure the local zoning allows you to operate there.

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In cases where you aren’t typically allowed to operate a business in a certain area—for instance, a home business in a residential area—you can apply for a zoning variance. A variance is more or less an exception to zoning laws. 

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For information on whether you need to apply for a variance, what types of zoning your town or city recognizes, and what kind of business you can perform there, contact your local municipality.

Register a business name in Florida

If your therapy practice is a sole proprietorship or a general partnership and you intend to do business other than your own (or yours and your partners’), you’re required by law to register a fictitious business name in Florida.

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Here’s a step-by-step guide:

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1. Search Florida’s fictitious name records to ensure the one you’d like to register isn’t already taken.
2. Advertise your fictitious name at least once in a newspaper published in the county where your practice operates. You are not required to get proof you’ve published your name, but when you register it, you will personally certify the name has been advertised.
3. Sign in to the fictitious name registration at SunBiz.org and follow the prompts onscreen.
4. Pay the $50 fee.

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For naming guidelines and other information, visit the Department of State’s fictitious business name page.

Choose a business structure recognized by the State of Florida

Each state recognizes—and registers—different business structures (aka “entity types”). Your practice’s business structure affects how its income is taxed and who may own shares of the practice.

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In Florida, the business structures you can choose from are:

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• Sole proprietorship
• General partnership
• Business corporation
• Professional service corporation*
• Limited liability company (LLC)
• Professional limited liability company (PLLC)*
• Limited partnership (LP)
• Limited liability partnership (LLP)*
• Limited liability limited partnership (LLLP)*

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*Only individuals working in regulated professions—including mental healthcare workers—may be members or shareholders.*

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This list is just an introduction. Before settling on a business structure, talk to your accountant—and, if necessary, a lawyer—for help choosing the right one. 

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For more information, check out our article How to Choose a Business Entity for Your Therapy Practice.

Sole Proprietorship

When you go into business for yourself, you’re considered a sole proprietor by default. As a sole proprietorship, your business is identical with your person: all revenue is your revenue, all losses are your losses.

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Sole proprietorships are the simplest form of business structure, but offer nothing in the way of legal or financial protection.

General Partnership (GP)

In a general partnership, all members are general partners—meaning, they all share legal and financial liability equally. 

Profit Corporation 

A profit corporation is a typical corporation as we know it: It exists separately from its owners, who own shares in it. There are two types: C corporations and S corporations. C corporations may elect S corporation status by filing IRS Form 2553.

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C corporations have their income taxed separately from the income of the shareholders. S corporations pass on the tax liability to each shareholder. (For a variety of reasons, Heard recommends its clients form S corporations at the federal level.)

Professional Service Corporation

Those practicing professions in the state of Florida are typically required to form professional service corporations. A professional service corporation functions like a business corporation, with added protections in case a shareholder is sued for malpractice. All shareholders in a professional service corporation must be licensed and practicing the same professions.

Limited Liability Company (LLC)

The LLC business structure offers liability protection similar to a corporation, but with the option to be taxed in different ways. Your accountant may recommend you elect to be taxed as either an S corporation or a partnership.

Professional Limited Liability Company (PLLC)

The PLLC business structure is identical to the LLC, except for the fact that every member must be a professional licensed by the State, and provide proof of certification when the PLLC files its articles of formation with the Department of State. Therapists qualify as professionals licensed by the state.

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The PLLC business structure provides extra liability protection for all members in case of legal proceedings brought against the organization (eg. a patient suing for malpractice.)

Limited Partnership (LP)

A limited partnership offers some liability protection for some of its members. To operate as a limited partnership, at least one individual acts as a general partner, who heads the company and makes major decisions, while at least one other individual acts as a limited partner, who does not. 

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General partners have unlimited liability—they are personally liable for the partnership’s debts, legal proceedings, and so on. Limited partners are only liable for their controlling share of the partnership.

Limited Liability Partnership (LLP)

An LLP is similar to a general partnership, but with extra protections; it’s typically favored by professionals like lawyers and accountants, but any professional licensed with the state (including therapists) may form an LLP. You can think of an LLP as the “professional version” of a general partnership.

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The LLP structure protects each partner against outcomes of the other partners’ professional negligence. For instance, if one partner in an LLP is sued by a client, the other partners are not liable.

Limited Liability Limited Partnership (LLLP)

The LLLP business structure is very similar to an LLP business structure. The main difference is that existing general partnerships may choose to register as LLPs, while existing limited partnerships may choose to register as LLLPs.

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Register your therapy practice in Florida

To register your business in Florida, you need to do two things:

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1. File the business registration with the State
2. Pay the filing fee.

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Here’s a breakdown for each of the business structures covered in section 3 above.

Form a sole proprietorship in Florida

Filing fees: No cost to form, fees apply to register an assumed name

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Aside from registering an assumed name, there are no extra steps you need to take in order to form a sole proprietorship in Florida. 

Form a general partnership in Florida

Filing fees: No cost to form, optional registration is $50

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Aside from registering an assumed name, there are no extra steps you need to take in order to form a general partnership in Florida. Consider drafting a partnership agreement in order to easily resolve any future disputes between partners.

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You may choose to register your general partnership with the Department of State if you plan to form an LLP later. 

Incorporate in Florida (profit corporation or professional corporation)

Filing fees: $35 to file Articles of Incorporation, plus $35 to designate a registered agent

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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File your Articles of Incorporation and pay the fee using the profit corporation page at SunBiz.org.

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Once you’ve incorporated in Florida, you can elect S corporation status by filing IRS Form 2553.

Register a Limited Liability Company (LLC) in Florida

Filing fees: $100 to file Articles of Organization, plus $25 for a registered agent designation

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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File your Articles of Organization and pay the fee using the LLC page at SunBiz.org.

Register a Professional Limited Liability Company (PLLC) in Florida

Filing fees: $100 to file Articles of Organization, plus $25 for a registered agent designation

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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File your Articles of Organization and pay the fee using the LLC page at SunBiz.org.

Register a Limited Partnership (LP) in Florida

Filing fees: $965 to file a Certificate of Limited Partnership, plus $35 to designate a registered agent

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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File a Certificate of Partnership and pay the fee using the limited partnerships page at SunBiz.org.
4. Draft a partnership agreement. This isn’t required by law in the State of Florida, but it will help you stay organized and settle any disputes between partners.

Register a Limited Liability Partnership (LLP) in Florida

Filing fees: $25 to file a Statement of Qualification for Florida LLP

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Note: The filing process for forming an LLP in Florida—including the SunBiz.org page where you do so—is the same as for registering an LP. You can learn more from the Department of State’s partnership page. Unlike when you register an LP, to register an LLP, you must already have an existing, registered general partnership.

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1. Choose a business name
2. File a Statement of Qualification for Florida LLP and pay the fee using the limited partnerships page at SunBiz.org.

Register a Limited Liability Limited Partnership (LLLP) in Florida

Filing fees: $965 to file a Certificate of Limited Liability Limited Partnership, plus $35 to designate a registered agent

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Note: The filing process and fees for forming an LLLP in Florida—including the SunBiz.org page where you do so—are the same as for forming an LP.

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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File a Certificate of Partnership and pay the fee using the limited partnerships page at SunBiz.org.
4. Draft a partnership agreement. This isn’t required by law in the State of Florida, but it will help you stay organized and settle any disputes between partners.
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Get business licenses and permits for your therapy practice in Florida

To operate in Florida, your therapy practice may require licenses or permits. These are handled at the federal, state, and local levels.

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Luckily, therapy practices do not need any special federal permits or licenses to operate in Florida. And, outside of standard licensure for mental health practitioners, they also do not require permitting or licensing at the state level.

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At the local level—meaning your municipality (town, city, etc.), you may be required to purchase a business license to operate. Contact your local permitting office for details.

Get business insurance for your therapy practice in Florida

The following types of business insurance are highly recommended for therapy practices operating in Florida:

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• General liability insurance
• Commercial property insurance
• Business income insurance
• Professional liability insurance
• Florida worker’s compensation insurance

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While shopping for insurance, look for a business owner’s policy (BOP). A BOP typically includes the three core types of insurance coverage: general liability, commercial property, and business income.

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General liability insurance protects you in case of any damages you cause to someone else’s property or person. Since the State of Florida puts no cap on liability lawsuit rewards, it’s important to make sure you’re well-covered. Aim for at least $1 million coverage.

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Commercial property insurance protects property your therapy practice owns, like computers, business phones, or office furniture. It also protects the building where you operate, whether owned or rented.

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Business income insurance covers you for loss of income due to specific circumstances. These include natural disasters, such as fire or storm damage; and man-made disasters, like theft.

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Professional liability insurance covers you in case you are sued for libel or slander, for mishandling patient records, for providing inaccurate advice, or for otherwise causing harm in the process of practicing your profession.

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If you have employees, you’re legally required to cover them with Florida worker’s compensation insurance. This pays for medical expenses, lost wages, and ongoing care in the event one of your employees is injured on the job.

Prepare to pay taxes in Florida

In Florida, only C corporations are required to pay income tax, at a rate of 5.5%. Electing S corporation status by filing IRS Form 2553 is a popular choice: S corporations offer many of the protections of a C corporation, without requiring you to pay income tax in the state. If you’re considering incorporation in Florida, consult with an accountant or qualified tax professional.

Learn how to pay taxes in multiple states

If you started your therapy practice in a different state, and you’re moving to Florida—or if you operate in Florida, and you’re planning to move to a different state—you’ll need to figure out how to pay taxes in multiple states.

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The rules vary depending on which states you operate in over the course of the year, and how long you spend in each. Check out how moving to a different state impacts your taxes as a therapist.

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Want to learn more? Check out our guide on how to start a therapy practice.

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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

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Bryce Warnes is a West Coast writer specializing in small business finances.

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