How To Start A Mental Health Practice In Minnesota

1. Local Zoning Laws and Regulations in Minnesota

Minnesota boasts 87 counties. The government published their zoing regulations on the Office of the Revisor of Statutes. The statute regarding zoning ordinances is presented in a clear and organized format. Users can easily access the text of Minnesota Statute 462.357, which outlines regulations and requirements related to zoning in Minnesota. The statute is well-structured, with headings, subsections, and numbering, making it easy for users to locate specific provisions. Additionally, hyperlinks within the statute allow users to navigate to related sections of the law with ease. Overall, the design is simple and functional, with a clean layout that makes the statute easy to read and understand.

2. Business Name Search in Minnesota

In Minnesota, it costs $50 to register an assumed name for your business. Here are the detailed fees and payments. The fastest and easiest way to register your business name is through the Business & Liens.

If you’re a sole proprietor planning to do business under a name different from your “real and true” name—that is, your personal name as it appears on legal documents—you must register an assumed name. General partnership names must include the names of all partners, or else register an assumed name.

Before registering a name, check the record searches rule. Note that, while Minnesota’s name search tool allows you to search at the state level, since names are registered on a county by county basis, it’s possible for multiple businesses with the same name to operate, but in different counties. When you register your business name, you can opt to have it registered in all counties at no extra charge.

3. Business Structure in Minnesota

• 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 yourself, 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 Minnesota

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

Form a sole proprietorship in Minnesota

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 Minnesota.

Form a general partnership in Minnesota

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

Incorporate in Minnesota

Filing fees: $155 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 Minnesota Department of State Fees and Payments.‍

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

Register a Limited Liability Company (LLC) in Minnesota

Filing fees: $155 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 Minnesota Department of State Fees and Payments.‍

Register a Limited Partnership (LP) in Minnesota

Filing fees: $120 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 Minnesota Department of State Fees and Payments.‍
4. Draft a partnership agreement. This isn’t required by law in the State of Minnesota, but it will help you stay organized and settle any disputes between partners.

Register a Limited Liability Partnership (LLP) in Minnesota

Filing fees: $155 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 Minnesota Department of State Fees and Payments.‍
4. Draft a partnership agreement. This isn’t required by law in the State of Minnesota, but it will help you stay organized and settle any disputes between partners.

5. Business Licenses & Permits in Minnesota

Check the Business License and Permits. This resource is designed to assist individuals who are starting a business in Minnesota. It provides guidance on a broad range of topics, including business structure, permits and licenses, regulations, and compliance requirements. Users can access comprehensive information and resources for each topic, such as detailed guides, step-by-step instructions, and links to relevant forms and external resources, all presented in a clear and accessible manner. Additionally, tailored information is offered for specific industries or types of businesses, highlighting any available incentives or programs, such as grants, tax credits, or training opportunities.

6. Business Insurance in Minnesota

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

• General Liability Insurance
• Commercial Property Insurance
• Business income insurance
• Professional liability insurance
• Minnesota 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 Minnesota puts no cap on liability lawsuit rewards, it’s important to make sure you’re well-covered. Aim for at least $1 million 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 Minnesota worker’s compensation insurance. The primary objective of the platform is to enlighten businesses on workers’ compensation insurance and its obligations in Minnesota. It delves into various facets of workers’ compensation, including its significance, legal responsibilities, coverage choices, and insurance procurement process. The introduction section provides an overview of workers’ compensation insurance and how it safeguards employees and businesses. It emphasizes the legal obligation for most businesses in Minnesota to have workers’ compensation coverage, and the potential repercussions of non-compliance. The platform offers comprehensive information on the steps involved in obtaining workers’ compensation insurance. It elaborates on the process of finding a provider, soliciting quotes, and selecting the appropriate insurance for the business’s unique requirements. Moreover, the platform provides resources and guidance on comprehending workers’ compensation premiums, calculating rates, and managing claims. It furnishes links to external resources and contact details for additional assistance or inquiries regarding workers’ compensation insurance.

7. Business Taxes in Minnesota

Check the website Income Tax Return. The platform aims to educate businesses on the importance of workers’ compensation insurance and its obligations in Minnesota. It covers a wide range of topics including the legal responsibilities, coverage options, and procurement process of workers’ compensation. The introduction provides an overview of insurance and its significance to both employees and businesses. It stresses the legal obligation of most businesses in Minnesota to have workers’ compensation coverage and the consequences of non-compliance. The platform offers comprehensive information on obtaining workers’ compensation insurance, including finding a provider, soliciting quotes, and selecting the appropriate insurance for the business’s unique needs. Additionally, the platform provides resources and guidance on understanding workers’ compensation premiums, calculating rates, and managing claims. The website also includes links to external resources and contact information for further assistance or inquiries regarding workers’ compensation insurance.