You passed the exam and your New York license is active. Now what? This is the checklist we use with newly licensed psychologists, LCSWs, LMHCs, LMFTs and psychiatric NPs who want to open a private practice in New York. Work through it in order.
1. Choose and form your entity
In New York, licensed mental health professionals generally form a PLLC (professional service limited liability company), not a standard LLC. The PLLC filing goes through the New York Department of State and requires a certificate from the Office of Professions. Then get an EIN from the IRS and register for New York State taxes. MBBCS handles all of this through our business formation service.
2. Get your NPI and decide on insurance
Apply for a Type 1 NPI (individual) and, if you formed a PLLC, a Type 2 (organization). Then decide: self-pay, insurance, or a mix. In New York, paneling with Aetna, Cigna, UnitedHealthcare, Empire BCBS and the major Medicaid managed care plans typically takes 60 to 120 days each, so start early if you want insurance clients.
3. Set up your EHR, scheduling and billing
Pick a HIPAA-compliant EHR (SimplePractice, TherapyNotes and Jane are common in New York), configure telehealth, intake forms, consent documents, a superbill or claims workflow and a card-on-file policy.
4. Write your practice policies
Cancellation and no-show policy, fees and sliding scale, communication and emergency policy, telehealth consent, Good Faith Estimate for self-pay clients (required under the No Surprises Act), and a notice of privacy practices.
5. Get insurance
Professional liability (malpractice) insurance is essential. Check whether your PLLC also needs general liability for an office lease.
6. Build a minimal web presence
A simple website, a Psychology Today profile, a Google Business Profile and a therapist directory listing or two. That is enough to be found. Do not spend thousands on a website before you have clients.
7. Set up bookkeeping from day one
A separate business bank account, simple bookkeeping software and quarterly estimated tax payments. This is the step most new therapists skip and regret in April.
How long does this take?
Done yourself while working another job: three to six months. With MBBCS doing the setup: usually four to six weeks, and credentialing runs in the background.
Quick answers
Do I need a PLLC to open a private practice in New York?
Most licensed mental health professionals in New York form a PLLC rather than a standard LLC. It requires a certificate from the Office of Professions before filing with the Department of State.
How long does insurance credentialing take in New York?
Typically 60 to 120 days per panel. Starting early is the single best way to shorten your time to first insurance client.
Can MBBCS set all of this up for me?
Yes. Entity formation, EIN, tax registration, EHR setup, policies, credentialing and a basic web presence are all part of our newly licensed package.
Ready to talk? MBBCS is a clinician-owned practice management team in Brooklyn serving therapists across New York. Book a free 20-minute consult or get a ballpark estimate in 30 seconds.
