Quick-Start Guide: Launching Your Telehealth Therapy Practice in California (2025 Edition)
As a fellow therapist, the thought of having a telehealth was very appealing. Being able to see clients from home and get the full fee with no greedy corporation taking a cut sounded great. No more commutes, more flexibility, and access to clients all across California! I know firsthand that launching a practice can feel overwhelming. That’s why I’ve put together this practical guide to help you launch your telehealth practice smoothly and affordably.
When I first started, choosing the right business structure was my initial hurdle. California therapists can’t form LLCs, so for most of us, starting as a sole proprietorship makes perfect sense. You can get started immediately, with zero filing fees, and your taxes stay simple since all income flows directly to your personal return. Later, once you surpass around $75k annually, transitioning to a Professional Corporation (PC) with an S-Corp election can offer some tax benefits. For now, simplicity is key.
Next came insurance billing, and let me tell you, credentialing with insurance companies on my own was a challenge and the juice was not worth the squeeze. There are some benefits I get into in my other articles, but if you’re just starting out, Headway is the way to go. Within weeks, Headway handled the credentialing process with essentially all the major insurance companies, even some Kaiser and Medi-care plans. It is a free service, and reimbursements between $100-$130 per session (depending on the plan, you control what you accept) deposited directly into your account. I have used many of the popular billing platforms but Headway is the only one I still use. If you use my LINK, I do get a reward.
Even though Headway streamlined insurance, I needed a more comprehensive Electronic Health Record (EHR) for scheduling, documentation, and client management. SimplePractice was the perfect match. It’s incredibly user-friendly, HIPAA-compliant, and now even offers an AI Note Taker, which transformed my documentation time from hours into mere minutes. SimplePractice is a fantastic EHR. I can confidently say it is the best EHR I have used. Many of the referrals I get also come from my personal Simple Practice website they include in the subscription to the EHR. There are other ones out there but SimplePractice is the gold standard. If you use my referral LINK, we both get $200 in free credit.
Of course, protecting your practice with liability insurance is non-negotiable. Many therapists underestimate this, but comprehensive coverage (around $300-$500 annually) protects both your practice and peace of mind. CM&F and CPH are my top recommendations since they automatically include telehealth coverage. I personally use CPH and its been good.
For your telehealth practice, you’ll need informed consent from your clients covering the limitations and benefits of telehealth, plus verification of identity and location for each session. Thankfully, these are straightforward processes easily managed through SimplePractice.
Lastly, don’t overlook setting up a Psychology Today profile. It’s still the go-to place clients search first, and having a polished profile helps new clients find and connect with you. Pro tip, link your SimplePractice website to your Psychology Today profile to streamline intakes.
Psychology Today has a promotion, “Give six months FREE to a friend, and get a month free for yourself.” Send me a message on my contact form and we can connect!
Launching your telehealth practice doesn’t need to feel overwhelming. My personal roadmap breaks it down clearly into manageable steps. Set your business structure, streamline billing and EHR, secure insurance, get compliant, and don’t forget your Psychology Today profile. With these steps, you’ll be up and running smoothly within about eight weeks. Of course, there are many other ways to go about this process and this flow is not for everyone, but if I could go back to the beginning. This is the route I would take.
Take the first step today—sign up for your telehealth, get an insurance quote, or create your Psychology Today profile. The flexibility and growth waiting for you on the other side are absolutely worth it!
