How To Start A Mental Health Practice In Michigan

To start a mental health practice in Michigan, follow these seven steps: Here is a detailed guide to help you navigate the process:

1. Local Zoning Laws and Regulations in Michigan

Michigan boasts 83 counties. Check the website Michigan Zoning Database for detailed information. The website’s primary purpose is to provide access to the MI Zoning Database, which contains information about zoning regulations and ordinances for various communities in Michigan. The database is an invaluable resource for developers, planners, and researchers seeking to understand zoning laws and restrictions across the state.

The homepage provides a brief introduction to the MI Zoning Database and its purpose. It includes a search bar that allows users to enter a specific address or community name and retrieve zoning information. The search functionality enhances the website’s usability and enables users to find relevant data quickly.

Upon initiating a search, the website displays the zoning information for the selected community or address. It provides details about the zoning district, zoning code, and any applicable regulations or restrictions. The information is presented in a clear and concise format, making it easy to understand.

The website also provides additional resources and links related to zoning and energy management in Michigan. Users can access documents, guides, and other relevant materials to further their understanding of zoning regulations and energy initiatives in the state.

2. Business Name Search in Michigan

In Michigan, it costs $10 to register an assumed name for your business. The fastest and easiest way to register your business name is through the Michigan Treasury.

The website is a resource for individuals and businesses starting new ventures in Michigan. It covers a wide range of topics related to business taxes, registration, and compliance with state laws and regulations. On the homepage, users can find links to important sections such as business registration, tax obligations, licenses and permits, and available incentives. Detailed information on the steps involved in starting a business in Michigan is provided. This includes topics such as business entity types, tax registration, employer obligations, sales tax, and other relevant considerations. The content is presented in a clear and organized manner, making it easy for users to follow and understand. Additionally, forms, guides, and FAQs are available to assist new businesses further. Users can also find links to external resources and contact information for the Michigan Department of Treasury. The website is designed for usability, with quick loading times, intuitive navigation, and user-friendly language that makes it accessible to individuals without a deep understanding of tax or business concepts.

If you’re a sole proprietor who plans to do business under a name other than your legal name, you must register the assumed name. In the case of general partnerships, the name must include the names of all partners, or an assumed name must be registered. Before registering a name, it is recommended to check the record searches rule. Michigan’s name search tool allows you to search at the state level, but since names are registered on a county-by-county basis, multiple businesses with the same name may operate in different counties. When registering a business name, you have the option of registering it in all counties at no extra cost.

3. Business Structure in Michigan

• 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 yours, 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 recommend 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 Michigan

To register your business in Michigan, 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 Michigan Department of State Fees and Payments.

Form a sole proprietorship in Michigan.

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 sole proprietorship in Michigan.

Form a general partnership in Michigan.

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 Michigan. Consider drafting a partnership agreement in order to resolve any future disputes between partners easily.

Incorporate in Michigan

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 Michigan Department of State Fees and Payments. There will be extra different costs, please check on the list.

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

Register a Limited Liability Company (LLC) in Michigan

Filing fees: $50 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 Michigan Department of State Fees and Payments. There will be extra different costs, please check on the list.

Register a Limited Partnership (LP) in Michigan

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 Michigan Department of State Fees and Payments. There will be extra different costs, please check on the list.
4. Draft a partnership agreement. This isn’t required by law in the State of Michigan, but it will help you stay organized and settle any disputes between partners.

Register a Limited Liability Partnership (LLP) in Michigan

Filing fees: $100 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 Michigan Department of State Fees and Payments. There will be extra different costs, please check on the list.
4. Draft a partnership agreement. This isn’t required by law in the State of Michigan, but it will help you stay organized and settle any disputes between partners.

5. Business Licenses & Permits in Michigan

To establish a therapy practice in Michigan, you should first determine the type of therapy practice you want to operate. Different therapy practices may have varying licensing requirements, so it is important to research the licensing requirements specific to your field of therapy. Visit the Michigan Department of Licensing and Regulatory Affairs (LARA) to research the appropriate licensing board or division related to your field of therapy. Contact the licensing board to obtain detailed information about the specific licensing requirements, application process, and any necessary examinations or certifications. Once you have obtained the application form, fill it out accurately and completely, providing all requested information and supporting documentation. Submit your completed application form along with any required supporting documents to the licensing board and pay the applicable licensing fees. Some therapy practices may require background checks and fingerprinting as part of the licensing process. After submitting your application, await approval from the licensing board. Additionally, you may need to obtain business permits or licenses at the local level, such as a business license or zoning compliance, so contact the city or county government where your therapy practice is located to inquire about any required local permits or licenses.

6. Business Insurance in Michigan

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

• General liability insurance
• Commercial property insurance
• Business income insurance
• Professional liability insurance
• Michigan worker’s compensation insurance

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.

• General liability insurance protects you in case of any damages you cause to someone else’s property or person. Since the State of Michigan puts no cap on liability lawsuit rewards, it’s important to make sure you’re well-covered. Aim for at least $1 million in coverage.
• ‍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.
• 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.
• 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.
• If you have employees, you’re legally required to cover them with Michigan worker’s compensation insurance. This pays for medical expenses, lost wages, and ongoing care in the event one of your employees is injured on the job.

7. Business Taxes in Michigan

Michigan Individual Income Tax e-File: The website aims to assist individuals in electronically filing their Michigan individual income tax returns. It provides information regarding the benefits of e-filing, the steps involved in filing online, and the different electronic filing options available. The homepage offers an overview of the e-filing process and links to different electronic filing options. It also gives access to resources such as forms, instructions, and FAQs related to Michigan individual income tax filing. The website offers various methods for electronic filing, including the Michigan Treasury Online (MTO) system and approved third-party e-file providers. It provides clear instructions on how to access and use these systems to ensure users understand the process and requirements. Furthermore, the website offers resources and assistance for individuals who may need additional support or have queries during the e-filing process. It provides contact information for the Michigan Department of Treasury, including phone numbers and email addresses, allowing users to seek help when required.

The website Business Tax Form provides all related forms. This platform offers businesses access to tax-related forms for fulfilling their tax obligations in Michigan. It provides a wide range of forms, including those for sales tax, income tax withholding, employer taxes, and other business-related tax filings. The platform provides downloadable forms in PDF or fillable PDF formats, with clear instructions and proper guidance. It also offers information on e-filing options, highlighting the benefits of electronic filing and providing access to electronic filing systems. The platform is easy to navigate and use, with clear and organized content that loads quickly.