Starting Your Direct Primary Care Practice
There are key business decisions you need to make when you first form your Direct Primary Care practice. It’s important you choose carefully because those decisions will affect you as a DPC physician.
The Key Business Decisions
- Choose your form of business entity
- Carefully choose and reserve your business name
- Register your business, get your tax ID numbers, and open a bank account.
- Develop relationships with an attorney, an accountant, and an insurance agent.
What Form of Business Will You Make: LLCs vs. Professional Corporations
There are several commonly-used forms of business entity depending on your state of practice, but regardless, you should utilize an entity that limits your liability as a business owner and offers preferential tax treatment. These generally take the form of a Limited Liability Company (LLC) or a Professional Corporation (PC), with the LLC the most popular since they are simple, flexible and inexpensive to form and manage. Each LLC is governed by a written document known as an operating agreement, in which the owners outline how the company will be run, how profits and losses are allocated, and how owners (known as “members”) join or exit the company. These operating agreements can range from boilerplate to highly customized. It’s important to work with your team of professional partners to pick the best business formation for you and your situation.
Carefully Choose and Reserve Your Business Name
Picking your company name is one of the most difficult parts of the process. You want a name that’s easy to remember, easy to spell, and says something about your practice. You also can’t use a name that’s already taken (at least in your area). Using your personal name is a good way to start, but doesn’t always work well if your name is difficult to spell. The branding section in the Freedom Healthworks Academy has a lot more details on this, but the important thing to know is that you can’t form your company without a name.
If you want to learn about branding, click here.
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