BH Practice Legal Structure — 2026 Guide

Common Structures for BH Practices

• Sole proprietorship (single provider, minimal separation)
• Single-member LLC (single provider, liability protection)
• Multi-member LLC (multiple owners)
• PLLC (Professional Limited Liability Company)
• PC (Professional Corporation)
• S-Corp (tax structure, can be LLC or PC)
• PA (Professional Association, some states)

State-Specific Requirements

Most states require professional practices (medical, therapy, legal) to use PC or PLLC (not standard LLC). Check state Board of Behavioral Health requirements.

Tax Considerations

• LLC default: pass-through taxation
• S-Corp election: reduces self-employment tax on distributions
• PC C-Corp: double taxation but retained earnings for growth
• QBI deduction eligibility (Section 199A)

Liability Considerations

• Corporate veil protects personal assets from business debts
• Malpractice insurance still required regardless of structure
• Personal guarantees on leases + loans pierce veil

Multi-State Practice Considerations

• Foreign entity registration in each state
• Provider licensure per state
• State tax compliance per state
• State-specific BH regulations

Revenant Care Practice Setup Advisory

– KD, Revenant Care