Complete Telehealth LLC Requirements Guide

Everything you need to know about forming and operating a compliant telehealth LLC. From business formation to medical licensing and HIPAA compliance.

6

Requirement Types

14

Steps to Launch

50

States Covered

HIPAA

Compliant

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LLC Formation Requirements

Essential requirements for this category

Articles of Organization

Required

File with your state's Secretary of State office

Cost:

$50-$500

Timeframe:

1-15 business days

Legal document establishing your LLC. Must include business name, registered agent, business purpose, and management structure.

Registered Agent

Required

Designate someone to receive legal documents

Cost:

$0-$300/year

Timeframe:

Same day

Can be yourself (if in-state), an employee, or a professional service. Must have a physical address in the state of formation.

Employer Identification Number (EIN)

Required

Federal tax ID from the IRS

Cost:

Free (DIY)

Timeframe:

Immediate online

Required for business banking, taxes, and hiring employees. Apply directly with IRS or through your formation service.

Operating Agreement

Optional

Internal document outlining LLC structure and operations

Cost:

$0-$500

Timeframe:

1-3 days

Not required in all states but highly recommended. Defines ownership, management, profit sharing, and procedures.

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Medical Licensing Requirements

Essential requirements for this category

Medical License

Required

Valid license in each state where patients are located

Cost:

$200-$1,000 per state

Timeframe:

30-90 days

Must be current and in good standing. Some states offer expedited licensing through Interstate Medical Licensure Compact.

DEA Registration

If prescribing

Required for prescribing controlled substances

Cost:

$888 (3 years)

Timeframe:

4-6 weeks

Needed for prescribing medications. Special registration may be required for telehealth prescribing in some states.

State Medical Board Registration

State dependent

Some states require telehealth-specific registration

Cost:

$50-$500

Timeframe:

2-4 weeks

Check with each state's medical board for telehealth practice requirements and any special registrations.

Specialty Board Certification

Optional

Board certification in your medical specialty

Cost:

Varies

Timeframe:

Ongoing

While not legally required, many insurance companies and patients prefer board-certified physicians.

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HIPAA Compliance Requirements

Essential requirements for this category

Privacy Rule Compliance

Required

Implement administrative, physical, and technical safeguards

Cost:

$500-$5,000 setup

Timeframe:

2-4 weeks

Establish privacy policies, conduct risk assessments, train staff, and implement security measures for PHI protection.

Business Associate Agreements (BAAs)

Required

Contracts with vendors handling patient information

Cost:

$0-$500

Timeframe:

1-2 weeks

Required with video platforms, EHR systems, cloud storage, billing services, and any vendor accessing PHI.

HIPAA-Compliant Technology

Required

Encrypted video platforms and secure data storage

Cost:

$50-$500/month

Timeframe:

1-2 weeks setup

Use platforms that offer encryption, access controls, audit logs, and will sign business associate agreements.

Security Risk Assessment

Required

Regular evaluation of security measures

Cost:

$500-$2,000

Timeframe:

Annual

Document potential vulnerabilities and implement corrective measures. Must be conducted annually and when systems change.

🏒

Business Licensing Requirements

Essential requirements for this category

General Business License

Usually

Required by most cities and counties

Cost:

$50-$500

Timeframe:

1-2 weeks

Requirements vary by location. Some areas have specific licenses for healthcare businesses or home-based operations.

Professional License

Required

State professional licensing for medical practice

Cost:

$200-$800

Timeframe:

30-60 days

Separate from medical license in some states. May require proof of malpractice insurance and continuing education.

Sales Tax Permit

If applicable

If selling products or taxable services

Cost:

$0-$100

Timeframe:

1-2 weeks

Most medical services are exempt, but some states tax certain telehealth services or products you might sell.

Controlled Substance License

If prescribing

State license for prescribing controlled substances

Cost:

$50-$300

Timeframe:

2-6 weeks

Required in addition to DEA registration. Some states have specific telehealth prescribing restrictions.

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Insurance Requirements

Essential requirements for this category

Medical Malpractice Insurance

Required

Professional liability coverage for medical practice

Cost:

$3,000-$12,000/year

Timeframe:

1-2 weeks

Must specifically cover telehealth activities and all states where you practice. Coverage amounts typically $1-3M per claim.

General Liability Insurance

Recommended

Protection against general business risks

Cost:

$500-$2,000/year

Timeframe:

1 week

Covers accidents, injuries, and property damage. Important if you have a physical office or see patients in person.

Cyber Liability Insurance

Optional

Coverage for data breaches and cyber attacks

Cost:

$1,000-$5,000/year

Timeframe:

1 week

Increasingly important for telehealth practices due to digital nature of services and PHI handling requirements.

Business Property Insurance

Optional

Protection for business equipment and property

Cost:

$500-$2,000/year

Timeframe:

1 week

Covers computers, medical equipment, and office furniture. May be included in homeowner's policy for home offices.

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Technology Requirements

Essential requirements for this category

High-Speed Internet

Required

Reliable broadband connection for video consultations

Cost:

$50-$200/month

Timeframe:

1-2 weeks setup

Minimum 1 Mbps upload/download per video session. Business-grade connection recommended for reliability.

HIPAA-Compliant Video Platform

Required

Encrypted platform for patient consultations

Cost:

$30-$200/month

Timeframe:

Same day

Must provide end-to-end encryption, access controls, and business associate agreement. Popular options include Doxy.me, Zoom Healthcare.

Electronic Health Records (EHR)

Recommended

Digital system for patient records management

Cost:

$100-$500/month

Timeframe:

2-4 weeks setup

Choose HIPAA-compliant systems with telehealth integration. Required for Medicare reporting and meaningful use incentives.

Backup Systems

Optional

Secondary internet and power backup solutions

Cost:

$100-$500 setup

Timeframe:

1 week

Mobile hotspot for internet backup, UPS for power backup. Essential for maintaining service during outages.

Step-by-Step Launch Checklist

1

Choose Your State

Research state requirements and select where to form your LLC

2

Reserve Business Name

Check name availability and reserve with the state

3

File Articles of Organization

Submit formation documents and pay state filing fees

4

Get Registered Agent

Designate someone to receive legal documents

5

Obtain EIN

Apply for federal tax identification number

6

Create Operating Agreement

Draft internal governance document

7

Get Business Licenses

Apply for required local and state business licenses

8

Obtain Medical Licenses

Ensure valid licenses in all practice states

9

Set Up HIPAA Compliance

Implement privacy policies and security measures

10

Get Insurance Coverage

Obtain malpractice and other required insurance

11

Set Up Technology

Install HIPAA-compliant platforms and systems

12

Open Business Banking

Establish separate business bank accounts

13

Get Credentialed

Apply for insurance company credentialing if accepting insurance

14

Launch Practice

Begin accepting patients and providing telehealth services

Ready to get started? Compare top LLC formation services:

Compare LLC Services

State-Specific Requirements Example

LLC formation costs and timelines vary by state. Here are examples from popular telehealth states:

California

LLC Formation Costs & Requirements

CA

Filing Fee

$75

Annual Fee

$20

Franchise Tax

$800

1st Year Total

$895

⏱

Processing Time

10-15 business days

Standard

5-Year Cost Projection

Total over 5 years

$4175

Average per year

$835

Texas

LLC Formation Costs & Requirements

TX

Filing Fee

$300

Annual Fee

FREE

Franchise Tax

None

1st Year Total

$300

βœ“

Processing Time

5-7 business days

Fast

5-Year Cost Projection

Total over 5 years

$300

Average per year

$60

Florida

LLC Formation Costs & Requirements

FL

Filing Fee

$125

Annual Fee

$138.75

Franchise Tax

None

1st Year Total

$263.75

βœ“

Processing Time

3-5 business days

Fast

5-Year Cost Projection

Total over 5 years

$818.75

Average per year

$164

Total Cost Breakdown

One-Time Setup Costs

LLC Formation $500 - $1,500
Medical Licenses $500 - $2,000
Technology Setup $1,000 - $3,000
HIPAA Compliance Setup $500 - $2,000
Legal & Professional Fees $1,000 - $3,000
Total Setup: $3,500 - $11,500

Annual Operating Costs

Malpractice Insurance $3,000 - $12,000
Software Subscriptions $1,200 - $6,000
License Renewals $500 - $1,500
Business Services $500 - $2,000
Continuing Education $500 - $2,000
Annual Total: $5,700 - $23,500

Note: Costs vary significantly based on state, specialty, and practice scope. Budget for the higher end if you're planning multi-state practice or complex services.

Recommended Formation Services

These services specialize in helping healthcare professionals meet all requirements

Best Overall
#1
ZenBusiness logo
$0 + state fees
β˜…β˜…β˜…β˜…β˜… 4.9/5

ZenBusiness

Entrepreneurs who want comprehensive support and compliance tools at an affordable price

ZenBusiness stands out as our top pick for LLC formation services thanks to its unbeatable combination of value, features, and support. With formation starting at $0 plus state fees, you can rest easy with their worry-free compliance service, award-winning customer support, and 100% accuracy guarantee. The Pro and Premium packages add even more value with 1-day processing, an employer ID number, operating agreement, and services to get your business online like domain name registration, AI business website builder, and more.

Pros:

  • βœ“ Starter package is $0 plus state fees
  • βœ“ Registered agent and compliance services
  • βœ“ Free worry-free compliance for 1 year
  • βœ“ Fast 1-day processing time available
  • βœ“ 100% accuracy guarantee
  • βœ“ Award-winning customer support

Cons:

  • βœ— Some features require upgraded plans
  • βœ— More expensive Registered Agent service
Get Started β†’
Fastest Formation
#2
Bizee logo
$0 + state fees
β˜…β˜…β˜…β˜…β˜… 4.6/5

Bizee

Budget-conscious startups needing fast formation

Bizee (formerly Incfile) offers lightning-fast LLC formation with their $0 package. They're perfect for entrepreneurs who need to form their LLC quickly and affordably. With same-day processing in many states and a year of free registered agent service, Bizee provides exceptional value for basic LLC formation needs.

Pros:

  • βœ“ $0 basic formation package
  • βœ“ Same-day processing available
  • βœ“ Free registered agent for first year
  • βœ“ Compliance alerts included
  • βœ“ Dashboard for document management
  • βœ“ Free business tools and templates

Cons:

  • βœ— Operating agreement not included in basic package
  • βœ— Limited customer support hours
Get Started β†’
Best for Branding
#3
Tailor Brands logo
$49 + state fees
β˜…β˜…β˜…β˜…β˜† 4.3/5

Tailor Brands

Creative businesses wanting formation plus branding

Tailor Brands combines LLC formation with comprehensive branding tools. Their unique approach includes AI-powered logo design, website creation, and marketing materials. Perfect for creative entrepreneurs who want to establish their brand identity alongside their legal structure.

Pros:

  • βœ“ Includes logo design and branding
  • βœ“ Website builder included
  • βœ“ Business card designs
  • βœ“ Mobile app available
  • βœ“ Operating agreement included
  • βœ“ EIN service included

Cons:

  • βœ— No rush processing available
  • βœ— Monthly subscription required
  • βœ— Customer service via chat/email only
Get Started β†’
⚠️

Important Legal Notice

This guide provides general information only and does not constitute legal or medical advice. Requirements vary significantly by state and change frequently. Always verify current requirements with:

  • State Secretary of State offices for business formation requirements
  • State medical boards for licensing requirements
  • Legal counsel familiar with healthcare law
  • Healthcare compliance consultants
  • Professional liability insurance providers

See our complete disclaimer for more information about the limitations of this guide.

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