Launching your own Applied Behavior Analysis (ABA) company is an exciting, rewarding step in your professional journey, but it doesn’t come without significant financial investment. From securing office space to hiring staff and ensuring compliance, starting an ABA therapy practice requires careful strategic financial planning. Whether you’re a Board Certified Behavior Analyst (BCBA) looking to open a solo operation or scale a mid-sized ABA clinic, understanding the full scope of costs involved is critical for long-term success.
In this guide, we’ll break down the key factors and expenses that impact how much it costs to start an ABA company. We’ll also share real-world tips to help new ABA clinics save money while maximizing efficiency with tools like all-in-one practice management software from Raven Health. We’ll help pave the way to get you set up with your own ABA clinic.
Before opening your doors, you’ll need a detailed business plan that accounts for operational costs, employee health insurance, and your chosen business structure, such as an LLC or sole proprietorship. It’s important to make sure you have enough money set aside, not just for general startup costs, but also to cover several months of overhead. And while we’ll walk through the core costs, we’ll also flag important other considerations—like credentialing fees and compliance tools—that can add up quickly if not planned for in advance.
Startup Costs for an ABA Company
So, how much does it cost to start an ABA business? There are six core cost categories every ABA therapy business should budget for in the early stages: office space, legal and licensing fees, business insurance, equipment, and marketing. These expenses vary depending on your business model, whether you provide in-home services, group therapy, or operate a traditional ABA therapy clinic.
Office Space
| Expense | Estimated Cost (Monthly) |
|---|---|
| Private office lease | $1,500 – $4,000 |
| Co-working/shared space | $300 – $1,000 |
| In-home services base (minimal) | $100 – $500 |
Securing office space is often one of the largest operational costs for an ABA therapy practice. Location, size, and amenities influence the overall cost to start an ABA company. New ABA clinics that start with in-home services or telehealth options may reduce initial overhead costs until they’re ready to invest in a full clinic.
Legal or Licensing Fees
| Expense | Estimated Cost |
|---|---|
| LLC setup | $50 – $500 |
| Licensing requirements | $100 – $1,000 |
| Employer Identification Number (EIN) | Free |
Whether you establish a limited liability company (LLC) or operate as a sole proprietorship (or co-owner), your ABA company must meet local licensing requirements and obtain an EIN to legally operate and pay ABA therapists, along with additional employees.
Business Insurance
| Expense | Estimated Annual Cost |
|---|---|
| General liability insurance | $500 – $1,200 |
| Professional liability (malpractice) | $800 – $2,000 |
| Workers compensation | $1,000 – $3,000 |
| Social security & employer taxes | Varies based on payroll |
ABA providers must protect their ABA therapy services from legal and financial risk. Professional liability, general liability, and workers compensation are non-negotiable for most businesses.
Equipment
| Expense | Estimated Cost |
|---|---|
| Specialized equipment (e.g., sensory tools) | $500 – $5,000 |
| Computers, tablets, and printers | $1,000 – $3,000 |
| Office supplies and furnishings | $500 – $2,500 |
From behavioral analysis tools to laptops for data collection, equipping your ABA clinic properly can add up. Many clinics lease rather than buy to reduce upfront cash flow burden.
Marketing
| Expense | Estimated Monthly Cost |
|---|---|
| Local advertising | $200 – $1,000 |
| Website setup & hosting | $500 – $3,000 (one-time) |
| Marketing strategy consultant | $1,000 – $3,000 |
Getting in front of potential clients early is crucial. Your marketing strategy should target your ideal audience, differentiate your brand, and build trust.
For more insight on optimizing your marketing approach, check out ABA industry trends shaping today’s most successful ABA companies.
Credentialing Fees
| Expense | Estimated Cost per Payer |
|---|---|
| Insurance credentialing (per payer) | $150 – $250 |
| Outsourced credentialing services | $1,000 – $2,500 total |
Credentialing with insurance providers is an essential step in launching an ABA therapy clinic that accepts claim reimbursements. Costs vary based on how many payers you credential with and whether you manage the process in-house or outsource to specialists. While it may seem like a significant financial investment upfront, proper credentialing expands your reach and improves long-term cash flow by allowing more patients to access your ABA therapy services.
Additional Costs
Beyond startup expenses, new business owners must account for ongoing operational costs that keep the ABA therapy practice running smoothly. These often include staffing and clinic overhead.
Staffing
| Role | Estimated Salary (Annual) |
|---|---|
| BCBA | $70,000 – $100,000 |
| RBT | $35,000 – $50,000 |
| Office managers/admin staff | $35,000 – $60,000 |
Employee-related expenses are one of the most significant financial investments for your ABA practice. Your team is your most important asset—hiring the right team directly impacts billable time, along with positive client outcomes.
Rent and Utilities
| Expense | Estimated Monthly Cost |
|---|---|
| Office rent | $1,500 – $4,000 |
| Internet, electricity, water | $300 – $600 |
| Phone systems | $100 – $300 |
Operational costs such as rent and utilities should be factored into your monthly projections. These expenses vary based on office size, service model, and geographic location.
Additional Considerations for Your ABA Practice
As you map out your ABA therapy business, it’s important to think beyond the initial startup numbers. A detailed business plan should include a buffer for unexpected operational costs, delayed insurance reimbursements, and ramp-up time for billing and payroll systems. Many ABA practices underestimate ongoing costs like software subscriptions, CEUs, or professional memberships, adding to your long-term overhead expenses.
Unlike other providers, ABA therapy practices often need specialized tools and staff ratios that increase day-to-day costs. Keeping an agile budget helps ensure you have enough funds to support staff hiring, training, and compliance while continuing to deliver high-quality ABA therapy. As your clinic grows, revisiting your plan regularly ensures that your payroll and resource allocation stay aligned with your goals, helping your ABA business remain financially sustainable and ready to scale.
Tips for Reducing Costs
Smart financial planning in the early stages can help new ABA businesses reduce overhead costs without compromising quality.
- Start virtual: Launching with telehealth or home service options can help avoid high rent.
- Lease vs. buy equipment: Leasing helps preserve cash flow and avoids large upfront costs.
- Outsource billing: Cut administrative tasks and increase collections with AI-powered billing solutions.
- Use practice management software: Centralize scheduling, billing, documentation, and overall ABA compliance.
- Leverage local advertising: Hyper-target your target market using Facebook or Google Ads.
- Hire part-time or contract staff: Reduce payroll costs until your client base grows.
Need a complete breakdown? Our guide on how to start an ABA company walks through each step in even greater detail.
Build Smarter, Grow Faster with Raven Health
Launching your own ABA practice is no small feat—but with the right business plan, strategy, and technology partner, it’s more attainable than ever.
From managing your cash flow and tracking key performance indicators to reducing administrative overhead and improving reimbursements, Raven Health’s all-in-one, AI-powered practice management software is built to support ABA providers every step of the way.
Unlike fragmented tools or costly enterprise solutions, our platform was designed specifically for small to mid-sized ABA clinics that need to do more with less. Whether you’re building your first ABA therapy clinic or scaling an existing ABA company, we’re here to help.
- Eliminate manual billing with AI-powered revenue cycle management
- Auto-generate session and progress notes to save BCBA time
- Track billable hours and simplify compliance
- Improve cash flow with faster claim reimbursements
- Save money with an all-in-one platform that replaces multiple software systems
Schedule a demo today to see how Raven Health can help your ABA therapy business grow with confidence.
Want to learn more about ABA compliance? We’ve got you covered there, too.
Final Thoughts
Most businesses fail not because they lack vision but because they run out of cash, underestimating all of the overhead costs. Starting an ABA clinic is no exception. With purpose-driven budgeting goals, the right business strategy, and technology like Raven Health, you can build a sustainable, profitable ABA therapy practice that makes a difference—for your clients and your bottom line.