Selecting Your Private Practice Structure

Presenter

Mary Thelander

MOT, OTR/L ATP

Gaylene Tool

MOT, OTR/L CBIS

Learner Outcomes

1. Learners will differentiate between at least three different business structures and determine the benefits and drawbacks of each for OTP private practice.
2. Learners will identify at least two resources available in Arizona that can support OTP business formation.

Abstract

Occupational therapy practitioners are involved in a variety of types of entrepreneurship including private practice for clients of all ages. If you are considering opening your own business, selecting a structure for an OTP business is an important first step. This presentation will delineate the advantages as well sa the disadvantages of Sole Proprietorship, Limited Partnerships, Limited Liability Companies, Limited Liability Partnerships and S-Corporations. Additionally, implications of each business structures’ personal liability and tax implications will be discussed. Numerous resources available for online review as well as in-person and teleconference consultation in Arizona will be delineated. Preliminary results of a 10-year integrative review of the knowledge, skills and abilities of occupational therapy and allied health private practice will guide learners in self-reflection of their own skills in relation to those required for business ownership.

Biography
Mary Thelander has been the primary instructor for coursework involving private practice at the University of New Mexico since 2013. Mary’s views of entrepreneurship are influenced by growing up in the contex of a small family business. As an OT, Mary has been an entrepreneur/contractor in various OT settings.

Gaylene Tool started her business as a COTA. After attaining her Master's degree in OT, Gaylene expanded her practice scope. Gaylene’s business, 2L Therapy, LLC, serves adults with developmental disabilities in their natural environment. Gaylene also works in adult rehabilitation and is faculty with the University of New Mexico. 

References to support evidence-based practice

1. American Occupational Therapy Association. (n.d.). Introduction to billing for private occupational therapy practice. https://www.aota.org/practice/practice-essentials/payment-policy//-/media/corporate/files/secure/advocacy/introduction-to-billing-for-private-occupational-therapy-practice.pdfhttps://www.aota.org/practice/practice-essentials/payment-policy//-/media/corporate/files/secure/advocacy/introduction-to-billing-for-private-occupational-therapy-practice.pdf
   https://www.aota.org/practice/practice-essentials/payment-policy//-/media/corporate/files/secure/advocacy/introduction-to-billing-for-private-occupational-therapy-practice.pdf

    

2. Harmon, S. (2014, May 20). Entrepreneurial options: Steps to consider in starting a private practice. OT Practice, 19(9), 8–11. https://communot.aota.org/HigherLogic/System/DownloadDocumentFile.ashx? DocumentFileKey=4db6159b-a4ce-370d-a950-9c356fd057ff

3. Vilorio, D. (2014, June). Self-employment: What to know to be your own boss. U.S. Bureau of Labor Statistics. https://www.bls.gov/careeroutlook/2014/article/self-employment-what-to-know-to-be-your-own-boss.htmhttps://www.bls.gov/careeroutlook/2014/article/self-employment-what-to-know-to-be-your-own-boss.htm

    

4. Washington, K., & Tarver, J. (2022, July 1). A guide to sole proprietorship taxes. Forbes Advisor. https://www.forbes.com/advisor/investing/financial-advisor/sole-proprietorship-taxes/

5. Thelander, M., Tool, G. (2025). The structure of your private practice. OT Practice February 2025 (24-29). https://www.aota.org/publications/ot-practice/ot-practice-issues/2025/the-structure-of-your-private-practicehttps://www.aota.org/publications/ot-practice/ot-practice-issues/2025/the-structure-of-your-private-practice