What are my local laws concerning a homebased medical billing business?
A. There is no federal certification requirement for this business. Certain states require licensing of independent contractors. Many municipalities require registration of homebased businesses. Ask your municipal and county clerk’s offices about these requirements. You do not need a tax identification number since you will not be a submitter of tax receipts. Corporations must have a tax identification number (EIN). You do not need to incorporate to start this business; you will be a sole proprietor on day one. The protection of a corporate shell will be important once you obtain a client and the accompanying risk. Your money is better spent for marketing than for incorporation expenses.
