Before an LCSW private practice opens, confirm you hold the state's independent clinical license, that any LMSW you hire can be lawfully supervised in your setting, that you are licensed wherever clients will be located, that your entity type is allowed, and that your NPI, payer enrollments, consent forms and records plan are ready.
Opening a private practice is mostly business work: a lease or a telehealth platform, an EHR, a bank account. The licensing items are fewer, but they are the ones that can shut the practice down or claw back payments. Work through them first.
1. Is your license independent?
Private practice generally requires the independent clinical license in that state: LCSW, LICSW, LCSW-C, LISW-CP, or Michigan's LMSW with a clinical designation. Watch the titles that look independent and are not:
- A Massachusetts LCSW is master's level; the clinical license is the LICSW.
- A DC LISW is independent for non-clinical work only.
- A Maryland LCSW (without the -C) is a non-clinical license.
If you are still an LMSW, the plan is the upgrade, not the practice. Our LMSW-to-LCSW Clinical License Upgrade covers the application once your hours are in.
2. Can a pre-licensed clinician work in your practice?
If you plan to hire LMSWs or associates, the supervision rules decide the structure:
- New York requires that an LMSW's clinical work happen in an authorized setting (for example a professional entity authorized to provide psychotherapy), and that the supervisor be employed by the employer, not by the LMSW. A limited permit cannot be used in a practice the permit holder owns.
- Maryland requires supervisors to be Board-approved before supervising, with at least 3 hours of face-to-face supervision a month or 1 hour per 40 worked.
- Texas requires supervisor status (LCSW-S), which takes two years in the license category and a 40-hour supervisor course.
- Michigan requires that hours toward the clinical designation be earned on a Michigan limited license, under a Michigan-licensed clinical supervisor.
- DC lets an LGSW do clinical work only under an LICSW.
See clinical supervisor designations for more states.
3. Where will your clients be?
You need a license in every state where clients are located when you see them, including by video. If your practice sits near a state line, or you plan to keep clients who move, decide which states you will serve now and license accordingly. A short visit allowance exists in a few places (California's 30-day allowance, Florida's out-of-state telehealth registration) but none supports an ongoing caseload. The compact will help once it is live; nobody can get a multistate license yet.
4. How will you set up the business?
Entity rules for licensed professionals vary. New York, for instance, says a general business corporation or not-for-profit generally may not provide professional services or employ licensed professionals unless authorized by law, and lists the professional entity types that can. Other states have their own professional corporation and LLC rules. Check with the secretary of state (and, where relevant, the board) before you form the entity, and get advice from an attorney or accountant on the structure. Register any trade name you will practice under.
5. NPI and payer setup
- Get or update your individual NPI. If you form an entity that bills, it needs its own organizational NPI.
- Decide which payers you will join. Medicare requires an independent clinical license in the state where the patient is and an enrollment that covers that state; see Medicare for clinical social workers.
- Commercial panels can take months. Start them as soon as the license and entity are in place.
Our sister site White Glove Credentialing covers credentialing for a new practice and Type 1 vs. Type 2 NPIs.
6. The paperwork your board expects
- Your disclosure and informed consent documents, including telehealth consent where a state requires it. Michigan, for example, requires consent before a telehealth service.
- A record retention plan. Washington, for example, requires client records to be kept for five years after the last visit and requires a plan for records if you close or die.
- Malpractice coverage that covers every state you practice in.
- A renewal and CE calendar for every license; see renewing in several states.
7. Then see the first client
If something on this list is unresolved, the first client can wait a week. Practicing without the right license is the one mistake on the list that can cost the license itself.
If you are opening in a second state, our License by Endorsement and Full State License Application services handle the licensing piece; a short call is the fastest way to map which you need.
Common questions
- Can an LMSW open a private practice?
- Generally not for clinical work. Most states allow clinical practice only at the independent clinical level, and New York, for example, does not allow a limited permit holder to practice in a business they own.
- Do I need a license in each state where my telehealth clients live?
- You need a license in each state where clients are located during sessions. A few states have short visitor allowances, but none supports an ongoing caseload.
- What business entity should a social work practice use?
- It depends on the state. Some restrict which entities may provide professional services or employ licensees, as New York does. Check with the secretary of state and get legal or tax advice.
Need Help with Your Application?
We handle the social work licensing process end-to-end — eligibility screening, documents, board follow-ups, and tracking.