LLC/PLLC formation, EIN, banking, and operating essentials

Form your entity before getting your EIN or Type 2 NPI

The IRS requires your business to legally exist before issuing an EIN. Most states require a PLLC specifically for licensed healthcare providers — check your Secretary of State website.

Choose your entity type

Most solo NPs choose a Single-Member PLLC: liability protection, pass-through taxes, and required for licensed professionals in most states. A sole proprietorship needs no paperwork but offers zero personal liability protection. PLLC is strongly recommended.

Register with your state Secretary of State

Search ‘[Your State] PLLC formation’ on the SOS website. File your Articles of Organization online. Fee: $50–$500 depending on state. Processing takes 1–5 business days.

Get your EIN from the IRS

Go to irs.gov → Apply for an EIN Online. Mon–Fri, 7am–10pm ET. Free and instant. Save the CP 575 confirmation permanently — banks and payers require it.

Apply for Type 2 (Organization) NPI

Go to nppes.cms.hhs.gov using your I&A credentials. Enter your legal business name exactly as on your Articles of Organization, plus your EIN. Required for billing under your practice name.

Open a dedicated business bank account

Bring your EIN (CP 575), Articles of Organization, and personal ID. Never mix personal and business finances — commingling funds can pierce your liability protection and creates tax nightmares.

Get a business credit card

Apply with your EIN. Use it exclusively for business expenses. This makes QuickBooks categorization clean and maximizes your deductions at tax time.

Create an Operating Agreement

Describes how your business operates, your ownership percentage, and succession. Required in some states; recommended in all. Templates are free online. Store it with your formation documents.

Get business insurance

At minimum: professional liability (malpractice) at $1M/$3M occurrence/aggregate, and general liability. Many NPs also add cyber liability given HIPAA obligations.