Overview
Could today be the day that the stars and the moon have aligned, and you are ready to take the plunge into business ownership? After weighing the pros and cons, you are determined to become the founder of your very own ABA clinic. Congratulations! First step, don’t quit your day job, just yet. Before you fully jump in, let’s make sure you have checked most of the boxes to be ready for self-employment.
Legal entity, business name and structure
The type of corporate structure determines your liability, business registration requirements, and how you will file taxes.Registration, federal and state tax ID, licenses and / or permits
LLCs, non-profit entities,or corporations will need to file with the federal government. An Employee Identification Number (EIN) allows you to pay federal taxes and state income, along with employment taxes. Be sure to apply for any required permits or licenses, hire employees, and set up a business bank account.Determine which type(s) of business insurance you need to start operating
General liability insurance vs. property insurance vs. income insurance vs. worker’s comp vs. data breach coverage should be considered depending on the business model, scope, and size of the organization.Choose a bank and set up a business account
Separate business and personal funds, whether for spending or receivables, protect your interests. Be sure to consider personal relationships, potential lines of credit, credit cards, and small business support when choosing your banking institution.Set up an accounting system
Consult with a professional if you do not have the knowledge and experience to be organized and compliant with federal and state tax laws.It is important to establish a system for filing financial statements and reports, as well as tracking profits and losses, based on an annual budget and projections.Determine which tools, equipment, technology, and electronic platforms are needed to operate the business
Whether home-based or center-based, certain technologies and platforms will be necessary to operate the business. Are you a Mac or PC fan? Microsoft vs. Apple platforms will determine, by design, options for business tools and technology resources. Clinical data gathering, billing platforms, monitoring KPIs, HRIS, ATS, and more influence how to document, bill claims, make data-driven business decisions, recruit, select, hire, and document and retain team member information. Don’t be overwhelmed… Remember, start small, think big.
These steps may not seem glamorous or fun, however, it is essential to check the boxes to ensure you are set up to succeed and to protect your personal and professional interests for the long term.
Resources
Register your business | U.S. Small Business Administration (sba.gov)
Get federal and state tax ID numbers | U.S. Small Business Administration (sba.gov)
Pick your business location | U.S. Small Business Administration (sba.gov)
Get business insurance | U.S. Small Business Administration (sba.gov)
Health care accounting: A beginners guide | QuickBooks (intuit.com)
The Use of Technology and HIPAA Compliance (hipaajournal.com)
These resources are neither endorsed nor supported by J2Jacobson Consulting, LLC or Raven Health and are simply provided to assist in expediting your research for starting an ABA provider company. We invite you to demo Raven Health ABA EHR and associated tools ABA Data Collection & Practice Management Software | Raven Health and to reach out to J2Jacobson Consulting Home (j2jacobsonconsulting.com) as you launch your journey into entrepreneurship.
Next Up:
The four (4) C’s: cash, credentialing, contracting, clinical model
