For clinicians and practices

A practice is not a standard LLC

Most states require licensed clinicians to form a professional entity, often a PLLC or professional corporation, and frequently limit ownership to licensed professionals. Add your board licensure and HIPAA-aware handling of records, and the structure has to be right from day one. We map all three and form the practice correctly.

Structure your practice Which entity fits?
Professional entity Board licensure mapped HIPAA-aware handling
Entity structure and compliance for clinical practices Professional entities HIPAA-aware handling 4.9 from 8,200+ reviews Board licensure mapped
PLLC / PC
The professional entity licensed clinicians form in most states
Licensed owners
Many states limit ownership of a practice to licensed professionals
HIPAA-aware
Document handling built with protected health information in mind
Board license
Your state board licensure mapped to the entity and tracked
The structure rule that trips up clinicians

The wrong entity can be a licensing problem

A clinician who forms a standard LLC because it was easy can find, later, that their state required a professional entity and restricts who may own a practice. That is not a cosmetic detail. It can put a license or a payer contract at risk, and unwinding it after you have patients and staff is far harder than getting it right at the start.

We check your profession and your state, form the correct professional entity with ownership set to the licensed people your state allows, and put HIPAA-aware handling of records in place, so the foundation is sound before the first patient walks in.

Structured like any business
  • A standard LLC where a PLLC is required
  • Ownership by someone not licensed
  • Board licensure not mapped to the entity
  • Records handled without HIPAA in mind
  • A costly restructure once patients arrive
Structured on File.Business
  • The professional entity your state requires
  • Ownership set to licensed professionals
  • Board licensure mapped to the entity
  • HIPAA-aware record handling in place
  • A sound foundation before day one
Which entity does your practice need?

Two questions, one structure

Whether you need a professional entity depends on your license and your state. Set both and see where you land.

As a licensed professional in a state that requires it, you form a professional entity, a PLLC or professional corporation, with ownership limited to licensed professionals. We form it correctly for your board.
The rules differ by profession and state, and some also require licensing-board approval of the entity. We confirm the specifics for your license before forming. See entity formation.
The whole practice setup

Everything a practice needs, structured right

Entity, licensure, and records, set up the way your board and HIPAA expect.

Professional entity

PLLC or professional corporation

EIN

Federal tax ID for the practice

Board licensure

Mapped to the entity

HIPAA-aware handling

Records built for PHI

Ownership agreement

Set to licensed owners

Registered agent

Required for the entity

Practice banking

A dedicated practice account

Compliance calendar

Renewals and reports, tracked
How your practice gets structured

From license to a practice, done right

Five steps, in the right order. Select one to see the detail.

Step 1

Confirm the structure for your license and state

We check whether your profession and state require a professional entity, and who your state allows to own it. That answer drives everything else, so we settle it before forming anything, rather than discovering it after you have patients.

Professional entity or standard, confirmed for your board.
License: CONFIRMED
Entity type set
Ownership rules mapped
Step 2

Form the professional entity

We form the PLLC or professional corporation your state requires, with ownership limited to the licensed professionals your state allows, and where your board must approve the entity, we handle that step too. State fees are passed through at cost.

The correct professional entity, with compliant ownership.
Entity: PLLC FORMED
Licensed ownership set
Board approval handled
Step 3

Get the EIN and practice banking

The EIN is your practice's federal tax ID, and a dedicated bank account keeps practice finances separate, which matters for your books, payer payments, and clean records. We set both up under the professional entity.

Tax ID and a dedicated practice account.
EIN: ISSUED
Practice banking opened
Finances separated
Step 4

Map board licensure to the entity

Your individual clinical license and the practice entity work together, and some states register the practice with the licensing board. We map your board licensure to the entity and track the renewal cycles so a lapse never interrupts your ability to practice.

Board licensure mapped and its renewals tracked.
Board license: MAPPED
Renewal cycle tracked
Practice registered
Step 5

Put HIPAA-aware handling and compliance in place

Any practice touching protected health information needs records handled with HIPAA in mind. We keep your formation documents and filings in a controlled, access-logged vault, and track your entity's ongoing reports and renewals, so the administrative side is buttoned up.

HIPAA-aware document handling, renewals in the calendar.
Records: HIPAA-AWARE
Reports and renewals tracked
Administration handled
How this compares for a practice

Built for a licensed practice, not a generic LLC

Most formation tools do not know your profession's rules. Here is the difference.

CapabilityFile.BusinessDIY formsFormation siteGeneric filer
Professional entity for your stateIf you knowOne pathNot available
Ownership set to licensed professionalsNot availableNot availableNot available
Board licensure mapped to the entityNot availableNot availableRarely
HIPAA-aware document handlingNot availableNot availableNot available
Renewals and reports trackedNot availableAdd-onIf asked
Transparent, published pricingTieredPer filing

The honest version. A healthcare attorney is essential for payer contracts, corporate practice of medicine rules, and complex ownership, and nothing here is legal advice. What File.Business does is form the correct professional entity, map licensure, and keep records HIPAA-aware and filings current, so your counsel focuses on the hard questions. Compare on the comparison hub.

BosAI for clinicians

An operator who knows the entity rules

Ask in plain English. BosAI knows professional entities, ownership limits, and HIPAA basics.

BosAIFounder workspace, Cedar Health PLLC

I'm a licensed therapist opening a practice. Can I use a regular LLC?

Often not. Many states require licensed clinicians to form a professional entity, a PLLC or professional corporation, rather than a standard LLC, and some limit ownership to licensed professionals. I have checked your state, and it requires a PLLC, so I have that set up with your licensure in mind.

My business partner is not a clinician. Can they co-own the practice?

In many states, a professional practice can only be owned by people holding the relevant license, so a non-licensed partner may not be able to hold equity in the clinical entity. There are lawful structures to involve them on the business side, and this is a good question for your healthcare attorney, which I can help you brief.

Does HIPAA apply to how you store my formation documents?

Your formation documents themselves are not usually protected health information, but your practice handles plenty that is, so we keep everything in a controlled, access-logged vault and work in a HIPAA-aware way. For your clinical records systems, your compliance officer sets the full program, and we support the entity side of it.
From a practice owner

Structured right the first time

A colleague had to unwind a standard LLC into a professional entity a year into her practice, and it was a nightmare with payers and the board. File.Business set mine up as a PLLC from the start, with ownership limited to licensed clinicians and my board licensure mapped in. When I brought on an associate, the structure already fit. I never had to redo anything.
Founder and Clinician
Outpatient practice
PLLC
the professional entity, from day one
Licensed
ownership, as the state requires
0
restructures needed since

Representative composite based on practice outcomes. Nothing here is legal or medical advice; consult your healthcare attorney and compliance advisor.

Practice guides and tools

Professional entities, licensure, and the calendar

Practical resources for structuring a clinical practice. All free to read.

Guide

Professional entities

PLLC and professional corporation basics.

Read the guide Guide

Business licenses

How board licensure and entity work together.

Read it Guide

Ownership agreements

Setting ownership to licensed professionals.

Read it Live tool

Compliance calendar

Entity renewals and reports, tracked.

Open the calendar
For the questions clinicians actually ask

Straight answers on entity, ownership, and HIPAA

Do I need a professional entity, a PLLC or PC?
In most states, a licensed clinician who owns a practice must form a professional entity, either a professional limited liability company or a professional corporation, rather than a standard LLC. The exact rule depends on your profession and state, and some require the licensing board to approve the entity. We confirm it and form the right one. See entity formation.
Who is allowed to own a medical or clinical practice?
Many states limit ownership of a professional practice to individuals licensed in that profession, and some enforce corporate practice of medicine rules that restrict non-clinician control. We set ownership to the licensed professionals your state allows, and for anything involving non-licensed partners, that is a question for your healthcare attorney.
What is HIPAA and does it apply to me?
HIPAA is the federal law governing how protected health information is handled, and it applies to most providers and their business associates. Your full compliance program is set by your compliance officer, but we handle your formation documents and filings in a HIPAA-aware way, in a controlled, access-logged vault.
Do I still need my state board license?
Yes. The entity does not replace your individual clinical license, and some states also register the practice entity with the licensing board. We map your board licensure to the entity and track the renewal cycles, so the two stay aligned and neither lapses. See licensure.
Can a non-clinical health business use a standard LLC?
Usually yes. A business that does not provide licensed clinical services directly, such as medical billing, a wellness product company, or a health technology startup, typically uses a standard LLC or corporation. The professional entity rules apply to the licensed practice of the profession, which the entity matrix above helps you see.
What about telehealth across state lines?
Practicing across state lines generally requires being licensed in the patient's state, and some states expect a registered entity there as well. As you expand, we handle the entity registration in each state, while your board licensure in each state is yours to obtain. See foreign qualification.
Should my practice be taxed as an S-corp?
A professional entity can often elect S-corp taxation, which can reduce self-employment tax once the practice is consistently profitable, subject to paying yourself a reasonable salary. It is a tax election on top of the entity, not a different entity, and we flag when your numbers make it worth it. See S-corp election.
Does this replace my healthcare attorney?
No, and this is not legal or medical advice. A healthcare attorney is essential for payer contracts, corporate practice of medicine, and complex ownership. File.Business forms the correct professional entity, maps licensure, and keeps records HIPAA-aware and filings current, so your counsel focuses on the harder questions. Talk to us.
Structured for a licensed practice

Build the practice on the right foundation

Confirm the structure, form the professional entity with compliant ownership, map your licensure, and keep records HIPAA-aware. Start now, or talk with our team about your practice.

Structure your practice See entity formation
SOC 2 Type II · Not a law firm · State fees passed through at cost