It’s Easier Than You Think!
How to Start a Medical Billing Business
Starting a business isn’t easy, but it doesn’t have to be impossible when you partner with the right people. At The Business of Medicine, we come alongside you as we teach you the ins and outs of medical billing and coding — including how to kickstart your business and jump right into your new career. Here are four things you’ll need to know along the way — enroll in our training program for additional information!
Form a Legal Entity
You’ll need to get started with a business name, Employer Identification Number (EIN), company bank account, and determine which type of business you’ll open. C Corporations, S Corporations, LLCs, and LPs are the most common four business entities you’ve probably heard of.
If you already have a CPA helping you with your taxes, now is a great time to talk with them about the type of business that will be the most beneficial for you. They will be able to help you understand the benefits and potential drawbacks of the various business entities.
Obtain Necessary Permits and Licenses
Although different states have their own guidelines and formatting requirements, there are currently no states requiring specific licenses to start a medical billing and coding business. The majority of restrictions pertain to business models in which clients come to your home or you sell goods out of a residential building; as a medical billing and coding business, you will be doing neither. That said, you will need to look into your own state’s laws to understand the legal implications of forming a business, even if it’s under your own roof.
Get Business Insurance
You’ve insured your home, car, personal property, and may have additional policies for other high-value assets. Your business will need its own policy, too.
In general, business insurance protects you from lawsuits, income loss, and other forms of liability. Again, you will need to work with a professional to understand which kind of policy will provide you with the coverage you need. A medical billing and coding business with several employees, for instance, will have different insurance needs than a business with a single operator. If the latter describes your situation, make sure that you look down the road and find an insurance policy that can grow as your business’ needs do.
Register for Taxes
Unfortunately, taxes are a necessary part of running your own medical billing and coding business. If you worked with a CPA to determine which kind of entity your business should be, then you probably already have an idea of what to expect with your taxes. If not, then you may want to consider working with one to make sure that you file your taxes correctly and provide the IRS with all the necessary information. The last thing you want as a new business owner is an unexpected audit!
The Business of Medicine is dedicated to helping you find success in the medical billing and coding industry. Learn from our experienced experts and enroll today!