So you read the first column, took the "quiz" and decided, yes, you want to own your own practice. So how do you start?

Business Types
Your first step is to identify the type of business you desire to establish. Types include sole proprietorship, partnership, LLC9 (limited liability corporation) and a corporation, including an S corporation. Do your research on each type, and schedule time with an attorney or an accountant to identify which type is the best fit for your mission and goals. (For more information on business types, see the IRS Web site www.irs.gov/businesses/index.html?navmenu=menu1. For information on the pros and cons of different business types, see the FAQs section in the Private Practice Resource Center.)

From personal experience I found that initially a sole proprietorship was least expensive starting out. A sole proprietorship requires fewer formal reports submitted to government agencies and fewer taxes. After your practice is established and expands, you change your business type to a partnership or incorporate if that makes more sense at that time.

Keep in mind that a corporation can cost anywhere from $500 to $2,000 or more just to establish. That also does not include the higher accounting fees you will pay to maintain compliance with the laws associated with a corporation, as well as filing a separate tax return to the IRS. The corporation is recognized as a separate entity and responsible to the government regarding its profits and losses.

Licenses
Once you've legally formed your practice, you're still not quite ready to do business. You'll also need to apply to the IRS for a tax ID number, and you'll need to obtain a state and local business licenses. Remember, without a tax ID number and proper licenses, you will be cited and fined and closed down by local authorities - before your first client walks through your doors.

What's in a Name?
A more enjoyable aspect of planning your business is choosing a name. The name you choose needs to reflect what you want to provide in concise, descriptive terms - no more than three to four words.

Consider choosing words that describe your specialty and those that your patient base can relate to. You may also want to incorporate a geographical landmark, for example, Lakeside Family Practice or Women's Medical Health Center. Remember, once selected, the business name will be your identity and will contribute to your success or failure.

When you hit on a name you like, take the extra step to search online to see if there's another business with the same name or if the domain name is taken. Many people now rely on the Internet for finding providers for a variety of services, so you'll want to own your name online.

DO your homework, be creative and get excited. You are on your way now!

Elaine Henson is an adult nurse practitioner who owns Women's Medical Health Center in Bullhead City and Lake Havasu City, Ariz. She was ADVANCE's first NP Entrepreneur of the Year, in 2006. Read how she started her practice.