Starting a private practice: what are your legal considerations before you begin?
Starting a private practice is an exciting step, but it also comes with important legal and business responsibilities. Before taking the leap, it is worth asking yourself a simple question. Will my practice be compliant if it opened tomorrow?
It is worth downloading our checklist and following along as you read this article. If you answer no or unsure to any section, it may signal that you need further advice.
Corporate and Commercial
The foundation of your practice begins with your business structure. You need clarity on whether you will operate as a sole trader, partnership, company and/or trust. If other people are involved in the ownership of the practice, you should have a written agreement that outlines how the practice is run and how decisions are made.
You also need to make sure you have an ABN, the correct registrations with ASIC, a registered business name and confirmation of who owns your intellectual property. Patient records, website terms of use, privacy obligations and trademarks should all be addressed.
Another key step is reviewing agreements with external service providers. These include practice software, equipment suppliers and telecommunication providers. If you are financing equipment or taking other loans to open the practice, you should also understand whether there are any security registrations – for example on the Personal Property Securities Register.
Employment and Workplace
Once you know who to hire, you must understand employment types and entitlements. This includes the National Employment Standards, the correct award for each role and whether you will pay award rates or above award rates.
Every employee should be given the required information statements when they start. You also need accurate systems for time keeping and employee records to comply with the Fair Work Act.
Independent Contractors
If you plan to engage doctors or allied health professionals as contractors, you must confirm that the arrangement is genuine at law. Contractor agreements need to be clear, up to date and reflective of the relationship.
Some contractors may still require superannuation contributions, depending on the structure of the work. Understanding this early helps avoid long term compliance issues.
Policies, Procedures and Insurance
A safe and compliant workplace requires proper policies. These include policies covering bullying, discrimination, harassment, surveillance (where required), vaccination requirements and health and safety obligations.
Appropriate insurance is also essential. This may include workers compensation, public liability and other forms of business insurance depending on your practice.
Property
Choosing the right location is only the first step. You also need to understand the obligations in your lease or purchase documents. Leasing often requires a bank guarantee or personal guarantee, and some leases place limits on equipment finance or subletting space to other practitioners.
If you purchase the premises, you must decide which entity will hold the property and whether it will lease the premises to your operating entity.
Estate Planning
Estate planning is often overlooked but is vital for anyone owning a practice. You should consider what happens to your interest in the practice if you die or lose capacity. This may require agreements between co-owners, a will, and a financial power of attorney. If the practice is run through a trust, you also need to understand how control of that trust passes.
Final thoughts and next steps
Starting a private practice requires more than clinical skill. It requires structure, documentation and forward planning. Working through each area above helps protect both your business and your future.
If you have any questions, or would like more information about how we can assist you or your practice, please call 1800 867 113, or to organise a confidential discussion at a time that suits you, please click here.
About the author
Ben Ryan is a Partner in the commercial and corporate law practice at Avant Law, based in Brisbane. Ben has been working with medical practices since 2013. Ben works primarily on commercial structuring and intellectual property matters to help clients achieve strategic and commercially sensible results. He pursued a career in law to provide reliable and honest support to those in need of legal assistance and enjoys working with clients to develop solutions-oriented legal strategy and advice.
Avant Law Pty Limited is an incorporated legal practice and not a partnership. Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners employed by Avant Law are members of the scheme.
The information in this publication does not constitute legal, financial, medical or other professional advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. Persons implementing any recommendations contained in this publication must exercise their own independent skill or judgement and seek appropriate professional advice relevant to their own particular circumstances. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Avant and its related entities are not responsible to any person for any loss suffered in connection with the use of this information. Information is only current at the date initially published.