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:
| Provider Type | Licensing Board |
|---|---|
| Physician (MD) | Board of Medicine |
| Physician (DO) | Board of Osteopathic Medicine |
| Nurse Practitioner | Board of Nursing |
| Physician Assistant | Board of Medicine |
| Chiropractor | Board of Chiropractic Medicine |
| Podiatrist | Board of Podiatric Medicine |
| Dentist | Board of Dentistry |
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:
| Coverage Type | Description |
|---|---|
| Occurrence | Covers claims from incidents during policy period |
| Claims-made | Covers claims made during policy period |
| Tail coverage | Extends claims-made coverage after policy ends |
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
- Gather documents:
- Medical license
- DEA certificate
- NPI number
- Malpractice insurance
- Board certifications
- CV/work history
- References
- Apply to each payer:
- Each insurance company has separate application
- Medicare (start here—others reference it)
- Medicaid
- Commercial payers (UnitedHealthcare, Aetna, Cigna, etc.)
- 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
- Designate Privacy Officer
- Responsible for HIPAA compliance
- Often the physician in small practices
- Conduct Risk Assessment
- Identify potential PHI vulnerabilities
- Document findings
- Address identified risks
- Develop Policies
- Privacy policies
- Security policies
- Breach notification procedures
- Implement Safeguards
- Encrypted email/data
- Secure EHR system
- Physical security measures
- Access controls
- Train Staff
- Initial HIPAA training
- Annual refresher
- Document training
- 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
| Factor | Consideration |
|---|---|
| Zoning | Medical use permitted |
| Accessibility | ADA compliance |
| Exam rooms | Appropriate for specialty |
| Waiting area | Patient capacity |
| Parking | Adequate for patients |
| Signage | Local regulations |
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
| Factor | Why It Matters |
|---|---|
| Specialty fit | Templates, workflows |
| Usability | Daily efficiency |
| Interoperability | Data exchange |
| Support | Training, help desk |
| Cost | Upfront and ongoing |
| Compliance | HIPAA, MIPS |
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
| Item | Cost Range |
|---|---|
| Florida LLC | $125 |
| DEA registration | $888 |
| NPI/CLIA | Free-$200 |
| EHR setup | $2,000-$10,000 |
| Office build-out | $20,000-$100,000+ |
| Equipment | $10,000-$50,000+ |
| Credentialing | $1,000-$5,000 |
| Legal/accounting setup | $2,000-$5,000 |
| Total | $35,000-$175,000+ |
Annual Ongoing Costs
| Item | Annual Cost |
|---|---|
| Malpractice insurance | $8,000-$200,000 |
| General liability | $1,000-$3,000 |
| EHR/software | $3,000-$6,000 |
| Billing services | 4-8% of revenue |
| Staff (varies) | Significant |
| Rent | Varies by location |
| FL annual report | $138.75 |
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.