The Grow Together Podcast

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Kate McCommons Season 1 Episode 6

How to Legally Start Your Private Practice (Without Losing $7,500 Like I Did)

Host: Kate McCommons, OT, Private Practice Owner & Business Coach
Length: ~30 mins
Tags: Private Practice Setup, OT Business, Tax Tips, Business Structure, Entrepreneurship, New OT Practice, Mistakes to Avoid

Episode Summary

In this episode, Kate shares the critical business setup steps every occupational therapist needs to take when starting a private practice. From choosing the right legal structure to saving thousands in taxes, Kate walks you through the unglamorous—but absolutely essential—foundations of building a practice that lasts. Plus, she shares a personal story of how skipping these steps cost her over $7,500 in her first year of business—and how you can avoid the same mistakes.

If you're overwhelmed by taxes, legal terms, and business bank accounts, this episode will break it down step by step and give you the clarity to move forward confidently.

What You’ll Learn in This Episode:

  • The difference between Sole Proprietorship, LLC, and S-Corp—and how to choose the right one
  • How NOT setting up your business correctly could cost you thousands
  • A simple three-bucket system to manage your private practice finances
  • The four tax write-off categories every therapist should track
  • Why DIY contracts can backfire—and what to use instead
  • The real cost of skipping malpractice insurance
  • Mistakes to avoid when registering your business, saving for taxes, and setting up accounts

Resources & Links Mentioned:

 Key Quote:

“Anything worth building is worth protecting—and that starts with how you structure your business.”


 Who This Episode Is For:

  • OTs dreaming of private practice but overwhelmed by the ‘legal stuff’
  • Therapists ready to launch a side hustle or full-time practice
  • Business owners who want to avoid costly setup mistakes
  • Anyone curious about the practical steps to build a legit, sustainable OT business

 Connect With Kate:

  • Subscribe to our Grow Together Members where we will send you weekly applicable templates to apply to and GROW your practice!
  • Get Your All-In-One Hub for marketing with 180x2 -Course hosting, email list, automations, social management and MORE through my affiliate link! CLICK HERE
  • If you are ready for 1:1 help, lets get started with a discovery call! Schedule here!
  • Protect Your Practice Through My Affiliate Link HERE - USE CODE KATE for $$ off!
  • Get my Resources For Private Practice HERE
  • Visit Our Therapy Website for Grow Together Therapy!
  • Pay Your Therapists with GUSTO (with my affiliate link :) )