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Most Applied Behavior Analysis (ABA) clinic owners specialize in behavioral analysis, not business management. Explore this guide and get advice from real ABA owners on every step in setting up a new clinic. Learn how to register a business, attract clients, and grow your practice.
To start an ABA clinic, you’ll need to incorporate your business. Then, you’ll create robust clinical procedures before accepting clients. The length of the entire process depends on your preparation level and whether you want to enroll with insurance providers.
Deciding to open a new Applied Behavior Analysis (ABA) clinic is the first step in an exciting phase of your career. But the process can feel overwhelming. Like any new business owner, you’ll need to create a robust business plan, save money, and go through the steps of registering your business. To top it off, you (or your staff) need to receive the licenses and credentials required of a Board-Certified Behavior Analyst (BCBA).
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Most BCBAs start in the field because they want to make a social impact and help others. Many like the idea of opening a clinic because they want to expand their reach and be their own boss. However, some BCBAs make the mistake of underestimating how much business, marketing, and non-clinical work goes into starting an ABA practice.
Aaron Tucker, founder and CEO of Forward Family Services, three ABA and behavioral health clinics in central California, recounts his motivation to start an ABA clinic.
But Tucker warns that BCBAs might be surprised at how much business management can be involved in starting an ABA clinic. “Many people are used to focusing on case management and interacting with kids. They may not realize that, as a business owner, you don’t get as much of that experience anymore.”
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Tucker sums it up nicely, saying, “if you want to be a business owner, are a confident leader, embrace teamwork, and want to help others, opening an ABA clinic will be right up your alley. To be successful, a new ABA owner must be resilient.”
With the proper support and preparation, the result will be worth it: your own clinic where you can use your unique skill set to improve your patients’ lives.
Setting up a business is straightforward, but steps vary based on state and business type. Start by creating a business plan and securing funding. Then, think of a name that encapsulates the spirit of your business. Finally, register your business.
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Before starting the journey, it’s worth noting that the entire process might require a mind shift. Dr. Brandon Herscovitch, clinical assistant professor of ABA at Truman State University and co-owner of Partners Behavioral Health, offers this advice:
“Think like both a BCBA and a businessperson. For example, being an ethical and caring businessperson can help provide a platform for you and your clinicians to serve your clients inside a sustainable model.”

Whenever you decide that you are ready, here’s a step-by-step guide detailing how to set up your ABA business. Click here to download our checklist for starting an ABA clinic.
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Before jumping full steam ahead, research the process diligently. In many cases, you can work on two steps concurrently, saving time and money. Plus, you may identify weaknesses that you’ll need outside help to tackle. For example, most experts advise speaking to a lawyer and an accountant at the beginning of the process.
Consider your finances and make a budget An accountant or business coach can help you with the subtleties of strategic financial planning. Don’t underestimate this stage: Proper planning will help you identify how much upfront capital you’ll need to get your business going and how long you’ll run in the early stages when you only work with a few clients. In fact, according to the Small Business Administration (SBA), one of the top five reasons a business fails is because they lack the capital to operate in the early stages.
Starting a business has an upfront cost. Ask yourself if you have enough money to absorb these costs or if you will need to borrow money. Consider that you may be unable to keep your day job while simultaneously opening a business. Estimate your startup cost and how long you can run your business without turning a profit. The number will vary based on your goals and whether you want to run an in-house or virtual practice. Split up your expenses into fixed costs(e.g., rent, web hosting services) and variable costs (e.g., anticipated staff hiring, etc.).
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This process will also help you determine a wage for yourself and your staff. This number will vary based on whether you will predominantly be paid through insurance carriers.
Herscovitch owned his own ABA clinic from 2006 to 2019. When asked about critical concepts he wished he knew more about before starting, Herscovitch stresses that “cash flow is an important concept to understand. People often focus on profitability, which is important too, but cash flow is also an essential concept to understand and plan for. Likewise, having a business plan and financial projections will help you succeed.”

Brainstorm your business name Your business name will follow you everywhere you go – from your registration forms to your website – so think carefully about your choice. Try encapsulating your business's spirit and speaking to your unique mission. Your business name should be easy to remember because it will be the centerpiece of your marketing campaign. Finally, check your state’s business registry website to ensure the name is available.
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Your business plan will outline your goals and how you will achieve them. You’ll also outline business milestones you hope to reach, helping you identify and prepare for potential roadblocks. Finally, potential investors will expect a well-written business plan if you are seeking any outside funding.
There are seven broad parts of a business plan. You should organize your business plan from general to specific. For example, start with an executive summary containing your business name, description, and team biographies. You then walk the reader through the specifics of your funding and marketing strategies. In the end, you will discuss the levels of growth you hope to achieve and how you will reach these milestones. For example, if you want to expand to many clinics, you should organize your plan around that goal.
Your state and region will determine specific regulations, license requirements, and expenses. For ABA providers, consider that different states offer different rates and have various rules and licensing requirements. Also, your location will affect fixed costs like rent and utilities.
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Your business structure affects how much you pay in taxes, your funding ability, the paperwork you need to file, and your liability. Before registering your business, you must choose a business structure. Many decide to discuss the relative pros and cons with their certified public accountant (CPA).
Sole proprietorship: You are immediately considered a sole proprietorship if you don’t register as any other business. In a sole proprietorship, your business assets and liabilities are not separate from your assets and liabilities. If you need a loan, consider that banks rarely lend to sole proprietorships.

On the other hand, sole proprietorships can be a good idea if you just want to test your idea before forming a more formal business or branching out to include multiple clinics.
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LLCs separate your personal and business assets. If you operate an LLC, personal assets won’t be at risk if your business faces financial issues. You will need to pay self-employed text contributions toward Medicare and Social Security.
Corporations have shareholders, officers, and a board of directors. SCORPs and CCORPs are the two major types of corporations. They differ in terms of their federal tax structure. Both corporations provide excellent protection against personal liability, allow you to sell stock, and are more expensive to set up than an LLC.
CCORP: Owners of CCORPs must pay corporate-level income taxes and can experience double taxation if they make a profit by selling shares.
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SCORP: SCORPs have a special tax status. In SCORPs, losses and profits pass through to the individual shareholders, who are then taxed individually. SCORPS don’t pay federal income taxes. This option can be attractive to ABA owners, but be aware that you must meet some requirements to file as an SCORP.
Register your business If you conduct business under your legal name ,you don’t need to register with the federal or state government. But, without registration, you won’t get personal liability protection and tax benefits.

Federal: Most businesses simply need to receive a federal tax ID to register with the federal government and become a legal entity. Small businesses sometimes register for trademark protection or tax-exempt status. If you want to trademark your business, brand, or product name, file with the U.S. Patent and Trademark Office. Register your business as a
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