How to Start a Medical Practice LLC in Florida

Starting a medical practice in Florida involves more than forming an LLC. Healthcare providers must navigate professional licensing, DEA registration, insurance credentialing, and healthcare-specific regulations.

This guide covers the business and compliance requirements for physicians and healthcare providers starting a practice in Florida.

Choosing Your Business Structure

Professional LLC (PLLC) vs. Standard LLC

Florida allows licensed professionals to form either:

• Standard LLC (most common)
• Professional Limited Liability Company (PLLC)

Unlike some states, Florida doesn’t require medical professionals to use a PLLC. Standard LLCs work for most physician practices.

Key distinction:

• LLC liability protection doesn’t cover your own malpractice
• You remain personally liable for your professional acts
• The LLC protects against business debts and others’ negligence

Professional Corporation (PA)

Some physicians choose Professional Associations (PA), Florida’s version of professional corporations.

PA considerations:

• More formal requirements than LLC
• Double taxation potential (unless S election)
• Some hospital credentialing may prefer PA

For most new practices, an LLC provides adequate structure with less complexity.

Sole Proprietorship

Not recommended for medical practices:

• No liability protection
• Personal assets at risk
• Less professional appearance
• Banking and credentialing complications

Step-by-Step: Starting Your Medical Practice

Step 1: Verify Professional Licensing

Before forming a business entity, ensure your Florida medical license is in order.

Florida Medical License (MD/DO):

• Issued by Florida Board of Medicine (MD) or Board of Osteopathic Medicine (DO)
• Verify at FLHealthSource.gov
• License must be active and unrestricted

For other healthcare providers:

Step 2: Form Your Florida LLC

File at Sunbiz.org:

• Articles of Organization: $125
• Include practice name
• Designate registered agent
• List members/managers

Naming considerations:

• Can include your name (Smith Medical, LLC)
• Can use practice-style name (Sunshine Family Practice, LLC)
• Avoid misleading terms
• Check for existing registrations

Professional requirements:

• Licensed professional(s) must be members/managers
• Non-licensed individuals can have limited roles (administrative only)

Step 3: Get Your EIN

Apply at IRS.gov:

• Free and immediate online
• Required for hiring staff
• Required for business banking
• Used for all tax filings

Step 4: DEA Registration

If prescribing controlled substances:

• Register with Drug Enforcement Administration
• Online at deadiversion.usdoj.gov
• Fee: $888 (3-year registration)
• Practice address specific

Multiple locations require separate registrations.

Step 5: Florida Controlled Substances Registration

In addition to DEA:

• Register with Florida Department of Health
• Online through Florida Board of Medicine
• Links to Prescription Drug Monitoring Program (PDMP)

Step 6: NPI Number

National Provider Identifier:

• Required for all HIPAA-covered providers
• Free registration at CMS.gov
• Type 1 NPI (individual provider)
• Type 2 NPI (organization/practice) if applicable

Step 7: CLIA Certification

If performing lab tests:

• Clinical Laboratory Improvement Amendments (CLIA) certification
• Waived tests require Certificate of Waiver
• More complex tests require higher certification levels
• Apply through CMS

Common waived tests:

• Rapid strep
• Urine dipstick
• Blood glucose
• Rapid flu

Step 8: Business Licenses

Florida business tax receipt:

• Apply through your county tax collector
• Fees vary by county
• Annual renewal

City business license (if applicable):

• Depends on your location
• Check with city business office

Insurance Requirements

Medical Malpractice Insurance

Essential for all physicians:

Typical coverage limits:

• $250,000/$750,000 (minimum common)
• $1 million/$3 million (standard)
• Higher for surgery, OB/GYN

Annual premiums (vary significantly):

• Primary care: $8,000-$20,000
• Specialty: $15,000-$50,000+
• Surgery/OB: $50,000-$200,000+

General Liability Insurance

Covers non-medical claims:

• Slip and fall accidents
• Property damage
• General business liability

Recommended: $1 million per occurrence

Business Owner’s Policy (BOP)

Combines:

• General liability
• Property insurance
• Business interruption

Cost: $1,000-$3,000/year for small practices

Workers’ Compensation

If you have employees:

• Required for 4+ employees (non-construction)
• Covers employee injuries
• Premiums based on payroll and job classifications

Cyber Liability Insurance

Protects against:

• Data breaches
• HIPAA violations
• Ransomware attacks
• Patient data exposure

Increasingly important given healthcare data targeting.

Insurance Credentialing

What It Is

Credentialing enrolls you with insurance companies so you can bill them for patient services.

Process Overview

1. Gather documents:

• Medical license
• DEA certificate
• NPI number
• Malpractice insurance
• Board certifications
• CV/work history
• References

1. Apply to each payer:

• Each insurance company has separate application
• Medicare (start here—others reference it)
• Medicaid
• Commercial payers (UnitedHealthcare, Aetna, Cigna, etc.)

1. Timeline:

• Medicare: 30-90 days
• Medicaid: 30-90 days
• Commercial: 60-180 days

CAQH ProView

Universal Credentialing Data Repository:

• One profile used by many payers
• Create profile at proview.caqh.org
• Keep updated—payers reference it

Credentialing Services

Many practices use credentialing services:

• Cost: $200-$500 per payer
• Time savings significant
• Ensures complete applications

HIPAA Compliance

Requirements

All healthcare providers must:

• Protect patient health information (PHI)
• Implement administrative safeguards
• Implement physical safeguards
• Implement technical safeguards
• Train workforce
• Have business associate agreements

Key Compliance Steps

1. Designate Privacy Officer

• Responsible for HIPAA compliance
• Often the physician in small practices

1. Conduct Risk Assessment

• Identify potential PHI vulnerabilities
• Document findings
• Address identified risks

1. Develop Policies

• Privacy policies
• Security policies
• Breach notification procedures

1. Implement Safeguards

• Encrypted email/data
• Secure EHR system
• Physical security measures
• Access controls

1. Train Staff

• Initial HIPAA training
• Annual refresher
• Document training

1. Business Associate Agreements

• Required with any vendor accessing PHI
• EHR vendors, billing companies, cloud services

Penalties

HIPAA violations are serious:

• $100-$50,000+ per violation
• Criminal penalties possible
• State attorneys general can pursue cases

Practice Location Considerations

Office Space Requirements

Lease Negotiation

Medical-specific considerations:

• Improvement allowances (exam rooms, plumbing)
• HVAC requirements
• After-hours access
• Signage rights
• Assignment/sublease rights

Build-Out Costs

Typical medical office build-out:

• $50-$150+ per square foot
• Exam rooms, lab space, procedure areas
• IT infrastructure
• Waiting room, reception

Electronic Health Records (EHR)

Selection Factors

Common EHR Systems

For small practices:

• Athenahealth
• Practice Fusion
• DrChrono
• eClinicalWorks
• NextGen

Costs

• Cloud-based: $200-$500/month per provider
• On-premise: Higher upfront, maintenance
• Implementation/training: $2,000-$10,000+

Billing and Revenue Cycle

In-House vs. Outsourced

In-house billing:

• More control
• Hiring and training costs
• Software costs
• Best for larger practices

Outsourced billing:

• 4-8% of collections typically
• No staff management
• Expertise included
• Common for small practices

Medical Billing Software

If billing in-house:

• Often integrated with EHR
• Clearinghouse for claims
• Patient billing
• Reporting/analytics

Startup Costs Summary

One-Time Costs

Annual Ongoing Costs

Frequently Asked Questions

Do I need a PLLC for a medical practice in Florida?

No. Florida allows physicians to use standard LLCs. PLLCs are optional.

Does an LLC protect me from malpractice?

No. You’re personally liable for your own professional negligence. The LLC protects against business debts and other claims.

How long does credentialing take?

Typically 60-180 days depending on the payer. Start early—this often delays practice launch.

Do I need a physical office location?

For most medical practices, yes. Telemedicine-only practices have different requirements. Check with medical board.

Can non-physicians own a medical practice in Florida?

Florida’s corporate practice of medicine doctrine limits ownership. Licensed physicians must maintain clinical control. Consult a healthcare attorney for specific structures.

Start Your Medical Practice

IncCraft handles your Florida LLC formation for $0 + the $125 state filing fee. We include registered agent service and compliance reminders.

Form your Florida LLC with IncCraft today.