Hi, this is Dave Kats with Therapist Consultants, and I have a tip for you.
A lot of people ask, as therapist, what type of business entity should I be? There are various types of entities. You can be a sole proprietorship, you can be an LLC or an LLP, you can be a corporation of some kind, but I'll tell you the most common kind is some derivation of the LLC. That's the most common kind.
Now, if you are real small and only going to see one or two or three people a week, perhaps you can stay as a sole proprietor. If you're going to be seeing more than just a few people a week, if you're going to be a real business, so to speak, I think you'll want to form an LLC. You can form an LLC in different ways. You can have an attorney form one for you. It's going to cost you somewhere between $1,000 and $2,000 probably.
You can form one through Legal Zoom or Rocket Lawyer or something like that. That's going to cost you probably $250 to $300, and that's a good way. Or you can literally do it yourself if you want to muddle through the work of forming an LLC. It depends on what you want to do that skill that you feel you have. I feel like if money is a consideration, then I would go with like Rocket Lawyer, or with some Legal Zoom, or someone like that. If you feel very comfortable working with the government, and work papers, and things like that, then form your own. There's actually very little cost, maybe $35 to $100 for filing.
At any rate, here's what you have to remember. You have to have some kind of business entity. I think the LLC is the best business entity to use in most states. Now, maybe under a different name than LLC, but it's a limited liability company. Look at what you're doing right now. See if you're up to date with everything, and consider forming an LLC if you haven't done it before.
This is Dave Kats. Thanks for listening.
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