Kristin Trick, MA, LCMHC, LPC-S, RPT-S is a therapist in private practice and specializes in the treatment of post-traumatic stress and anxiety disorders. She has worked in the psychiatric hospital, non-profit agency, and private practice settings over the past 10 years.
Once you’ve established a private practice, the thought of moving your counseling practice to another state can feel unfathomable. After investing years and significant resources into building a business, the prospect of leaving its state of origin can lead to professional paralysis.
That was my attitude until my husband accepted a job transfer outside of Texas, the state I’d called home for 13 years and the source of my professional licensure and business filing.
Initially, my research on different states’ requirements was disheartening. The disparity between state licensure standards is high, with some states requiring more supervised hours and graduate credits than others.
In some cases, clinicians who have achieved supervisory titles in their home state must return to the role of supervisee in their new one. This combination of inconsistent requirements and drawn-out approval processes often discourages clinicians from ever moving their practice beyond state lines.
The challenges of moving a private practice across state lines
While you may feel settled now, life events can necessitate moving your counseling practice to another state. I initially feared that my move to North Carolina meant the end of my Texas-based PLLC. My concerns were rooted in several logistical hurdles:
- Business re-filing: Professional counsel informed me of the options for my PLLC: domesticate the business into North Carolina, dissolve it and start fresh, or "foreign qualify" to maintain my Texas practice from afar while adding a presence in North Carolina. Each choice carried heavy consequences, such as the potential loss of my employer identification number (EIN), which was tied to my existing insurance contracts.
- Processing delays: I needed to apply for a license in my new state, a process that could take months and wasn’t guaranteed.
- Insurance credentialing: Though I was an approved provider with BCBS and Aetna in Texas, those contracts wouldn’t transfer. I’d need to re-apply for their North Carolina counterparts to serve new local clients.
- Time zone logistics: To retain Texas clients using telehealth, I'd have to adjust my schedule to incorporate both East Coast availability and the 1–2 hour difference with Central and Mountain Time zones.
- Financial strain: Moving is expensive and I feared it could clean out my practice. I was wary of paying for new business registrations and licensing fees while being unable to bill for sessions during the actual move.
Strategic advantages of relocating your counseling business
Rather than dwelling on the obstacles, I began exploring the advantages an interstate move could afford my business. I found that relocating a private practice is more viable today than it was pre-COVID, largely due to telehealth’s popularity.
I began to see several strategic advantages:
- Geographic expansion: I chose to foreign qualify, so my business would have a branch in 2 states. This allowed me to retain clients who moved between those states and, assuming I gained licensure in my new state, grow my total client base.
- Increased revenue potential: My new city in North Carolina has higher rates for sessions than what I charged in Texas. These higher fees meant I could see fewer clients while maintaining or even increasing my income.
- Better referrals: Per the LPC Code of Ethics, I occasionally have to refer potential clients elsewhere if a prior relationship exists. By moving, the potential for these dual relationships in Texas became minimal. I could now accept more referrals from former colleagues or local community leaders in my home state without conflict.
- Revamped services: The move forced me to reevaluate my daily workflow. I had to review my offerings and make updates to ensure the health and growth of my business, such as adding services like parent coaching and play therapy supervision.
"Relocating a private practice is more viable today than it was pre-COVID, largely due to telehealth’s popularity."
Navigating the Counseling Compact licensure options
My research revealed that the regulatory burden is beginning to ease thanks to the Counseling Compact. Designed to eliminate barriers to interstate practice, the compact acts as a centralized clearinghouse for applications. Currently, states like Arizona and Minnesota have led the way in issuing compact member privileges.
While many states have already passed legislation to join, others (including California, New York, and Texas) have not yet fully implemented the data exchanges and background check requirements necessary for active participation.
For counselors whose home state is not yet active in the compact, 2 other avenues exist:
- Licensure by endorsement: A state board agrees to honor a license granted by another state, provided that state has equal or higher standards.
- Licensure by reciprocity: Two or more states formally agree to recognize each other's licenses, granting counselors multi-state privileges.
"Designed to eliminate barriers to interstate practice, the Counseling Compact acts as a centralized clearinghouse for applications."
Final tips on moving your counseling practice to another state
Ultimately, I chose to foreign qualify my practice and apply for licensure by endorsement. I’d accrued a steady client base, referral network, and insurance contracts which were all connected to the state I’d called home for over a decade; I wasn’t ready to give them up. I also didn’t want to start a business all over again, needing to apply for a new EIN and banking accounts.
Your personal circumstances will help you decide what to do with your PLLC. If you choose to continue your business through a move, organization is key. Ensure that all your records are in order and accessible in advance to help you maintain control of your business during a hectic cross-country move.
You might also be interested in
- Diagnose and improve your practice’s revenue streams: Discover how to diversify your revenue, lower operating costs, optimize billing, and outshine your competitors with this free 6-chapter workbook.
- Owning an in-person vs. virtual practice: Discover the advantages and challenges of both in-person and virtual counseling practices to make an informed decision.
- How to choose the right EHR for behavioral health: A practical guide for mental health and behavioral health providers to identify the right EHR system that balances compliance, care quality, and long-term growth.
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