Abundant Practice Podcast – Episode #707
How To Set Up Your Practice In A New State
Host: Allison Puryear
Release Date: November 22, 2025
Episode Overview
In this episode of the Abundant Practice Podcast, host Allison Puryear addresses a listener's pivotal question: "How do I set up my therapy practice when moving to a new state?" Allison provides a step-by-step roadmap for therapists looking to transfer their private practice, covering licensing considerations, business registration, name retention, insurance updates, and other essential logistics. Her advice is peppered with personal experience, actionable guidance, and empathetic reassurance for those navigating bureaucratic transitions.
Key Discussion Points & Insights
1. Understanding Licensing vs. Business Registration
Timestamps: 03:12–05:10
- Licensing determines where you can see clients; it is tied to the client's physical location during the session.
- Business registration dictates your company’s legal and tax status; it's a separate process from licensure but overlaps in practical functioning.
Quote:
“There’s your clinical license, which determines where you’re allowed to see clients... Then there’s your business registration, which determines where your company legally exists for tax and compliance purposes. They’re totally different systems that just happen to overlap.”
—Allison, 03:38
2. Navigating State Licensure Transfers
Timestamps: 05:10–08:38
- Start by contacting both the licensing board in your current state and the one in your new state.
- Most states require a license in the state where the client is physically located.
- You can usually keep seeing clients from your old state, provided you keep your license active there, but cannot see new clients in the new state until licensed.
- Some states offer temporary practice allowances or are part of compacts; research your new state's policies.
- Begin your new state licensure application as early as possible—processing often takes months.
Quote:
“The safest thing you can do is research what’s allowed while your new license is pending. Licensing takes forever, so I advise getting started on the licensing process in your new state ASAP.”
—Allison, 07:07
3. Choosing the Right Business Entity
Timestamps: 08:40–13:00
- Therapists typically cannot operate under a normal LLC; most states require a Professional LLC (PLLC) or a Professional Corporation (PC).
- Some states allow you to keep your old PLLC active and register it as a “foreign PLLC” in your new state—meaning "out of state".
- Other states require you to form a new PLLC/PC from scratch.
- The registration process can involve "bureaucratic ping pong" between the Secretary of State and the licensing board.
Quote:
“You are not just moving your address. You are setting up the right legal home for both your license and your business.”
—Allison, 04:31
“It’s like bureaucratic ping pong... You send the documents to the board, they send you an approval letter. You send that to the Secretary of State, Secretary of State says, ‘Oh wait, we need this other thing too.’ ...That’s totally normal. It’s part of the process. It’s really annoying.”
—Allison, 11:25
4. Naming, Branding, and DBA Considerations
Timestamps: 13:00–15:00
- Most times, you can retain your business name, but confirm it’s not already registered or trademarked in the new state.
- If your name is taken, consider registering a DBA (“Doing Business As”) to maintain branding consistency.
- Avoid any legal complications by ensuring your desired business name isn’t trademarked.
Quote:
“If your existing business name is taken in your new state, then it gets tricky. You’ll just need to make sure it’s available by doing a quick name search on the Secretary of State’s website... If the name is trademarked, don’t do it.”
—Allison, 14:14
5. Updating Insurance, Paperwork, and Professional Details
Timestamps: 15:01–17:30
- Update business insurance (malpractice/general liability) to cover both practice states and ensure correct PLLC status.
- Revise your NPI registry, informed consent forms, and website to list both state licenses and proper disclosure language.
- If you accept insurance, notify each panel with updated practice addresses and tax IDs.
- Inform your accountant—dual-state practice may mean reporting, but not always double taxation.
Quote:
“Make sure your malpractice or general liability coverage is extended to both states if you’re working in both... that insurance is a lot more expensive. I’m sorry.”
—Allison, 15:35
6. Setting Expectations and Self-Compassion
Timestamps: 17:31–19:05
- The transition period may take months due to bureaucratic delays—plan for downtime between wrapping up in your old state and launching in your new one.
- You do not have to have everything ready before you move; focus on incremental progress.
Quote:
“You’re not just moving furniture. You are really relocating an entire professional identity. That’s huge. So you’re going to do it thoughtfully and legally, which already puts you miles ahead.”
—Allison, 18:30
Notable Quotes & Memorable Moments
-
On the process:
“I know this sounds like a lot, I’m saying a lot of letters, but it’s not as complicated as all those letters might have made it sound.”
—Allison, 17:05 -
On taking care of yourself:
“Give yourself grace because moving a therapy business across state lines is not a one-week process... If you can, plan a small buffer between winding down in one state and ramping up in another—you’re going to need that to unpack anyway.”
—Allison, 18:00 -
Parting wish:
“I hope that your move is paperwork light and coffee heavy.”
—Allison, 19:10
Recap: Step-by-Step Roadmap
Timestamps: 17:55–18:40
- Confirm licensure policies for both states during your transition.
- Register your business entity in your new state (PLLC/PC); check if foreign registration is allowed.
- Update business name or file a DBA if necessary.
- Update all insurance, NPI, client forms, website, and accountant records.
- Be patient—bureaucracy requires time and tenacity.
Additional Resources
- Free worksheet: "Moving and Your Practice"; text sheets to get it or find it in the show notes.
- Support: www.abundancepracticebuilding.com
- Abundance Party Membership: For system setup and business support.