How To Start A Mental Health Practice In Wisconsin

1. Local Zoning Laws and Regulations in Wisconsin

Wisconsin boasts 72 counties. Wisconsin also has its Zoning Board Handbook.

To determine the zoning regulations in a specific city, town, or county, start by identifying the local government entity. Each local government has its own zoning ordinances and regulations. Once you have identified the locality, look for a section related to planning, zoning, or land use. Within this section, you should be able to access the local zoning ordinances or codes. These documents outline the regulations and requirements for land use, development, setbacks, building types, and other zoning-related matters. Additionally, many local governments provide zoning maps that depict the different zoning districts within their jurisdiction. These maps show the boundaries of residential, commercial, industrial, and other zoning districts, which can help determine the zoning classification for a specific property or area.

2. Business Name Search in Wisconsin

In Wisconsin, it costs $20 to register an assumed name for your business. The fastest and easiest way to register your business name is through the State of Wisconsin Department of Revenue.

If you’re a sole proprietor planning to do business under a name different from your “real and true” name—that is, your personal name as it appears on legal documents—you must register an assumed name. General partnership names must include the names of all partners, or else register an assumed name.

Before registering a name, check the record searches rule. Note that, while Wisconsin’s name search tool allows you to search at the state level, since names are registered on a county by county basis, it’s possible for multiple businesses with the same name to operate, but in different counties. When you register your business name, you can opt to have it registered in all counties at no extra charge.

3. Business Structure in Wisconsin

• The type of business structure you choose for your practice affects how your income is taxed and who may own shares in the practice. Each state has different business structures available for registration.
• *Only individuals working in regulated professions, which includes mental healthcare workers, are allowed to become members or shareholders.
• Sole Proprietorship
  • By default, when starting a business on your own, you are classified as a sole proprietor. This type of business structure is the most basic, as there is no legal or financial protection offered. Your business is not considered separate from yourself, meaning that any revenue or losses are directly tied to you personally.
• General Partnership
  • In a general partnership, all partners are considered general partners, meaning that they share legal and financial liability equally.
• Business Corporation
  • A profit corporation is a kind of corporation that is separate from its owners, who own shares in it. It can be one of two types: C corporation or S corporation. C corporations have their income taxed separately from the income of the shareholders, while S corporations pass on the tax liability to each shareholder. If a C corporation wants to become an S corporation. we recommends its clients form S corporations at the federal level for various reasons.
  • Individuals practicing certain professions are required to establish professional service corporations. A professional service corporation operates similarly to a business corporation but offers greater protections for shareholders in the event of a malpractice suit. To form a professional service corporation, all shareholders must be licensed and practicing the same profession.
• Limited Liability Company (LLC)
  • The LLC business structure provides limited liability protection like a corporation, but allows for flexibility in how it is taxed. Your accountant may suggest electing to be taxed as an S corporation or partnership depending on your circumstances.
• Professional Limited Liability Company (PLLC)
  • The PLLC business structure is similar to the LLC, but every member must be licensed by the state and provide certification when filing articles of formation with the Department of State. Therapists meet the requirements for licensed professionals. This structure offers additional legal protection for all members in the event of litigation brought against the organization, such as a malpractice suit from a patient.
• Limited Partnership (LP)
  • A limited partnership provides liability protection only for some of its members. To function as a limited partnership, there must be at least one general partner who is responsible for managing the partnership and making significant decisions, as well as at least one limited partner who is not involved in management and has limited liability. General partners have unlimited liability and are personally responsible for partnership debts, legal actions, and other obligations. Limited partners, on the other hand, are only responsible for their respective share of the partnership.
• Limited Liability Partnership (LLP)
  • An LLP, or Limited Liability Partnership, is a type of partnership that provides additional protection to its partners. It is frequently used by professionals such as lawyers, accountants, and therapists. The LLP structure safeguards each partner against the consequences of other partners’ professional misconduct. If one partner is sued by a client, the other partners are not held liable. In essence, it is the professional equivalent of a general partnership.
• Limited Liability Limited Partnership (LLLP)
  • The LLLP business structure is almost identical to the LLP business structure. The key difference is that a general partnership can opt to register as an LLP, while a limited partnership can choose to register as LLLPs.

4. Register Your Business in Wisconsin

To register your business in Wisconsin, you need to do two things:

1. File the business registration with the State
2. Pay the filing fee. For a complete list of fees, see the Wisconsin Department of State Fees and Payments.

Form a sole proprietorship in Wisconsin
Filing fees: No cost to form, fees apply to register an assumed name
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Aside from registering an assumed name, there are no extra steps you need to take in order to form a sole proprietorship in Wisconsin.

Form a general partnership in Wisconsin
Filing fees: No cost to form, fees apply to register an assumed name

Aside from registering an assumed name, there are no extra steps you need to take in order to form a general partnership in Wisconsin. Consider drafting a partnership agreement in order to easily resolve any future disputes between partners.

Incorporate in Wisconsin
Filing fees: $10 to file Articles of Incorporation

1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File your Articles of Incorporation and pay the fee using the Wisconsin Department of State Fees and Payments.

‍Once you’ve incorporated in Wisconsin, you can elect S corporation status by filing the form.

Register a Limited Liability Company (LLC) in Wisconsin
Filing fees: $130 to file Articles of Organization

1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File your Articles of Organization and pay the fee using the Wisconsin Department of State Fees and Payments.

Register a Limited Partnership (LP) in Wisconsin
Filing fees: $125 to file a Certificate of Partnership

1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File a Certificate of Partnership and pay the fee using the Wisconsin Department of State Fees and Payments.
4. Draft a partnership agreement. This isn’t required by law in the State of Wisconsin, but it will help you stay organized and settle any disputes between partners.

Register a Limited Liability Partnership (LLP) in Wisconsin
Filing fees: $125 to file a Certificate of Partnership
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1. Choose a business name
2. Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
3. File a Certificate of Partnership and pay the fee using the Wisconsin Department of State Fees and Payments.
4. Draft a partnership agreement. This isn’t required by law in the State of Wisconsin, but it will help you stay organized and settle any disputes between partners.

5. Business Licenses & Permits in Wisconsin

The State level using Licensing and Regulatory Affairs.

Purpose: The primary goal is to provide a self-service tool for individuals or entities to verify the licenses of professionals in Wisconsin. It serves as a resource for the public to ensure that professionals they engage with hold valid licenses and meet the necessary requirements for their respective occupations.

User Interface: The tool features a search function where users can enter the name, license number, or other relevant details of a professional to retrieve their license information. The search results display the licensee’s name, license type, license status, and any disciplinary actions or restrictions associated with the license.

Navigation: The design is straightforward, focusing on the search functionality. The search form is prominently displayed, making it easy for users to access and conduct license lookups. The layout and organization of information are intuitive and user-friendly.

Authority: The tool is operated by the Wisconsin Department of Safety and Professional Services, which is responsible for regulating various professions and ensuring compliance with licensing requirements in the state.

Reliability: The information provided is based on the data maintained by the DSPS. It is essential to note that the information is subject to change, and users are advised to verify the accuracy and currency of the information with the DSPS directly.

6. Business Insurance in Wisconsin

The following types of business insurance are highly recommended for therapy practices operating in Wisconsin:

• General liability insurance
• Commercial property insurance
• Business income insurance
• Professional liability insurance
• Wisconsin worker’s compensation insurance
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While shopping for insurance, look for a business owner’s policy (BOP). A BOP typically includes the three core types of insurance coverage: general liability, commercial property, and business income.
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General liability insurance protects you in case of any damages you cause to someone else’s property or person. Since the State of Wisconsin puts no cap on liability lawsuit rewards, it’s important to make sure you’re well-covered. Aim for at least $1 million coverage.
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Commercial property insurance protects property your therapy practice owns, like computers, business phones, or office furniture. It also protects the building where you operate, whether owned or rented.
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Business income insurance covers you for loss of income due to specific circumstances. These include natural disasters, such as fire or storm damage; and man-made disasters, like theft.
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Professional liability insurance covers you in case you are sued for libel or slander, for mishandling patient records, for providing inaccurate advice, or for otherwise causing harm in the process of practicing your profession.
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If you have employees, you’re legally required to cover them with Wisconsin worker’s compensation insurance. The Wisconsin Department of Workforce Development (DWD) offers a wide range of resources for employers in Wisconsin related to workers’ compensation, including information on employer responsibilities, insurance requirements, claims management, safety programs, injury reporting, dispute resolution, and compliance with state laws and regulations. The information is presented in a user-friendly layout with clear navigation menus, ensuring easy access to the specific information that employers need. The DWD operates the resource, ensuring the provided information is reliable and up-to-date.

7. Business Taxes in Wisconsin

Every business earning income in Wisconsin is required to pay state taxes. It is an invaluable resource for those who wish to establish a business in Wisconsin. Its primary aim is to provide a one-stop platform that guides users through the process of opening a business in the state. It offers comprehensive information and resources on various aspects of starting a business, including licensing, permits, registrations, and compliance requirements. The platform has a user-friendly interface with clear navigation menus, allowing users to easily access the information they require. It provides step-by-step guidance, checklists, and links to relevant forms and applications necessary for starting a business. Additionally, it offers information on business planning, financing options, and available resources to support entrepreneurs.