Counseling Compact Business Considerations

Hi everyone,

Since I am starting to get more PMs about this, I figured it would be helpful to compile some initial information on going through the business set-up side of things for the Counseling Compact. Now obviously, different states will have different rules, so I figured it would be useful to start listing them out as more states come online. If the SW Compact gets passed, I will also update the doc to include those states if they are different.

You will find the first three states on this attached form, with more coming as more states come online.

Now, obviously, I AM NOT A LAWYER NOR AN ACCOUNTANT. This is all information gleaned directly from state websites and Google searches. This is meant to be a starting point for you, not direct guidance. Speak to an attorney or accountant for specifics on your own situation so you can be in compliance.

If your plan is to start seeing patients in other states, make sure you are also augmenting your accounting software to differentiate the state income comes from, so that way you can accurately report and generate the appropriate numbers for income.

Also, because this will inevitably get asked: at least as far I have seen, all three states INCLUDE state tax requirements on virtual businesses generating service income within the state, even if you have no physical location present in the state. I am not sure if it will be that way for every state, but for at least these three, state income tax is required reporting.

Hope this helps,