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
Jump to a requirement category:
LLC Formation Requirements
Essential requirements for this category
Articles of Organization
RequiredFile with your state's Secretary of State office
$50-$500
1-15 business days
Legal document establishing your LLC. Must include business name, registered agent, business purpose, and management structure.
Registered Agent
RequiredDesignate someone to receive legal documents
$0-$300/year
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)
RequiredFederal tax ID from the IRS
Free (DIY)
Immediate online
Required for business banking, taxes, and hiring employees. Apply directly with IRS or through your formation service.
Operating Agreement
OptionalInternal document outlining LLC structure and operations
$0-$500
1-3 days
Not required in all states but highly recommended. Defines ownership, management, profit sharing, and procedures.
Medical Licensing Requirements
Essential requirements for this category
Medical License
RequiredValid license in each state where patients are located
$200-$1,000 per state
30-90 days
Must be current and in good standing. Some states offer expedited licensing through Interstate Medical Licensure Compact.
DEA Registration
If prescribingRequired for prescribing controlled substances
$888 (3 years)
4-6 weeks
Needed for prescribing medications. Special registration may be required for telehealth prescribing in some states.
State Medical Board Registration
State dependentSome states require telehealth-specific registration
$50-$500
2-4 weeks
Check with each state's medical board for telehealth practice requirements and any special registrations.
Specialty Board Certification
OptionalBoard certification in your medical specialty
Varies
Ongoing
While not legally required, many insurance companies and patients prefer board-certified physicians.
HIPAA Compliance Requirements
Essential requirements for this category
Privacy Rule Compliance
RequiredImplement administrative, physical, and technical safeguards
$500-$5,000 setup
2-4 weeks
Establish privacy policies, conduct risk assessments, train staff, and implement security measures for PHI protection.
Business Associate Agreements (BAAs)
RequiredContracts with vendors handling patient information
$0-$500
1-2 weeks
Required with video platforms, EHR systems, cloud storage, billing services, and any vendor accessing PHI.
HIPAA-Compliant Technology
RequiredEncrypted video platforms and secure data storage
$50-$500/month
1-2 weeks setup
Use platforms that offer encryption, access controls, audit logs, and will sign business associate agreements.
Security Risk Assessment
RequiredRegular evaluation of security measures
$500-$2,000
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
UsuallyRequired by most cities and counties
$50-$500
1-2 weeks
Requirements vary by location. Some areas have specific licenses for healthcare businesses or home-based operations.
Professional License
RequiredState professional licensing for medical practice
$200-$800
30-60 days
Separate from medical license in some states. May require proof of malpractice insurance and continuing education.
Sales Tax Permit
If applicableIf selling products or taxable services
$0-$100
1-2 weeks
Most medical services are exempt, but some states tax certain telehealth services or products you might sell.
Controlled Substance License
If prescribingState license for prescribing controlled substances
$50-$300
2-6 weeks
Required in addition to DEA registration. Some states have specific telehealth prescribing restrictions.
Insurance Requirements
Essential requirements for this category
Medical Malpractice Insurance
RequiredProfessional liability coverage for medical practice
$3,000-$12,000/year
1-2 weeks
Must specifically cover telehealth activities and all states where you practice. Coverage amounts typically $1-3M per claim.
General Liability Insurance
RecommendedProtection against general business risks
$500-$2,000/year
1 week
Covers accidents, injuries, and property damage. Important if you have a physical office or see patients in person.
Cyber Liability Insurance
OptionalCoverage for data breaches and cyber attacks
$1,000-$5,000/year
1 week
Increasingly important for telehealth practices due to digital nature of services and PHI handling requirements.
Business Property Insurance
OptionalProtection for business equipment and property
$500-$2,000/year
1 week
Covers computers, medical equipment, and office furniture. May be included in homeowner's policy for home offices.
Technology Requirements
Essential requirements for this category
High-Speed Internet
RequiredReliable broadband connection for video consultations
$50-$200/month
1-2 weeks setup
Minimum 1 Mbps upload/download per video session. Business-grade connection recommended for reliability.
HIPAA-Compliant Video Platform
RequiredEncrypted platform for patient consultations
$30-$200/month
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)
RecommendedDigital system for patient records management
$100-$500/month
2-4 weeks setup
Choose HIPAA-compliant systems with telehealth integration. Required for Medicare reporting and meaningful use incentives.
Backup Systems
OptionalSecondary internet and power backup solutions
$100-$500 setup
1 week
Mobile hotspot for internet backup, UPS for power backup. Essential for maintaining service during outages.
Step-by-Step Launch Checklist
Choose Your State
Research state requirements and select where to form your LLC
Reserve Business Name
Check name availability and reserve with the state
File Articles of Organization
Submit formation documents and pay state filing fees
Get Registered Agent
Designate someone to receive legal documents
Obtain EIN
Apply for federal tax identification number
Create Operating Agreement
Draft internal governance document
Get Business Licenses
Apply for required local and state business licenses
Obtain Medical Licenses
Ensure valid licenses in all practice states
Set Up HIPAA Compliance
Implement privacy policies and security measures
Get Insurance Coverage
Obtain malpractice and other required insurance
Set Up Technology
Install HIPAA-compliant platforms and systems
Open Business Banking
Establish separate business bank accounts
Get Credentialed
Apply for insurance company credentialing if accepting insurance
Launch Practice
Begin accepting patients and providing telehealth services
Ready to get started? Compare top LLC formation services:
Compare LLC ServicesState-Specific Requirements Example
LLC formation costs and timelines vary by state. Here are examples from popular telehealth states:
California
LLC Formation Costs & Requirements
Filing Fee
$75
Annual Fee
$20
Franchise Tax
$800
1st Year Total
$895
Processing Time
10-15 business days
5-Year Cost Projection
Total over 5 years
$4175
Average per year
$835
Texas
LLC Formation Costs & Requirements
Filing Fee
$300
Annual Fee
FREE
Franchise Tax
None
1st Year Total
$300
Processing Time
5-7 business days
5-Year Cost Projection
Total over 5 years
$300
Average per year
$60
Florida
LLC Formation Costs & Requirements
Filing Fee
$125
Annual Fee
$138.75
Franchise Tax
None
1st Year Total
$263.75
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$818.75
Average per year
$164
Total Cost Breakdown
One-Time Setup Costs
Annual Operating Costs
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
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:
- β Starter package is $0 plus state fees
- β Registered agent and compliance services
- β Free worry-free compliance for 1 year
- β Fast 1-day processing time available
- β 100% accuracy guarantee
- β Award-winning customer support
Cons:
- β Some features require upgraded plans
- β More expensive Registered Agent service
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:
- β $0 basic formation package
- β Same-day processing available
- β Free registered agent for first year
- β Compliance alerts included
- β Dashboard for document management
- β Free business tools and templates
Cons:
- β Operating agreement not included in basic package
- β Limited customer support hours
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:
- β Includes logo design and branding
- β Website builder included
- β Business card designs
- β Mobile app available
- β Operating agreement included
- β EIN service included
Cons:
- β No rush processing available
- β Monthly subscription required
- β Customer service via chat/email only
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.