Skip to content
Gallery
pie
pie Onboarding
Onboarding with pie Health
CP-575 Letter
Articles of Incorporation
W-9 Form
Business License
NPI Confirmation Letter
PECOS Surrogacy Access for Medicare
Organizational Chart / Ownership Attestation
Group Practice Attestation
Availity
MFA: Multi-Factor Authentication
CHAMPS
Share
Explore

icon picker
Business License

Some payors request a business license to confirm your practice is legally registered. Find out if it applies to you and what to submit..
During the insurance credentialing process, you may be asked to submit a copy of your business license. But not every provider has—or needs—one.
Whether this requirement applies to you depends on your specialty, practice structure, and location. Some solo providers are exempt, while others—especially group practices—may be required to have one on file before credentialing can move forward.
Here’s how to know what applies to your practice.
help

What Is a Business License?

A business license is a government-issued permit that allows a person or organization to operate legally within a particular city, county, or state. It’s separate from your professional license (like your LCSW or PT license) and is generally tied to your business entity or physical location.

Why Do Insurance Payors Ask for It?

Some insurance payors use the business license to confirm:
Your practice is properly registered
You’re authorized to operate at your service location
Your tax and regulatory obligations are being met
It’s a way to validate that your business exists—and meets local legal requirements.
That said, not every provider is required to have one. And that’s where it gets confusing.

Who Typically Needs a Business License?

Whether you need a license usually depends on what kind of provider you are and how your practice is set up:
Mental Health Providers (LCSWs, LPCs, Psychologists, etc.): If you’re working solo—especially via telehealth—you may be exempt from local business license requirements. But if you see clients in person or run a group practice, check your city or county rules.
Physical & Occupational Therapists: Individual providers might not need a business license, but those operating a clinic or hiring staff likely do. Requirements can vary by state and city.
Physicians (MDs/DOs): Most physicians practicing under their professional license do not need a separate business license—unless they’ve formed an entity or operate a group practice.
Group Practices and Clinics (Any Specialty): If your practice has multiple providers or employees—or is structured as an LLC, PLLC, or corporation—you’re more likely to need a business license at the local level.
Virtual-Only Practices: Practices that operate fully online may not need a local license, but should still check with the state or city where the business is registered.

Not Sure If You Need One?

You're not alone. Business license requirements are often determined by your city or county, not just your state.
To check:
Look up your city or county clerk’s office
Visit your state’s Secretary of State or Department of Revenue
Search for “[your city] + business license requirements”
Ask your accountant, attorney, or local small business center
If you find that no license is required for your setup, keep that documentation. Payors may accept a short letter confirming your exemption.

If You’re Asked for One and Don’t Have It

Don’t panic. Some payors will accept:
A signed statement that no license is required for your business
Documentation from your city or state confirming exemption
In some cases, your professional license may be accepted instead (but only if the payor allows it)

Tips for a Smooth Credentialing Experience

Confirm whether your business structure and location require a license.
If you have a business license, make sure it’s active and not expired.
If you’re exempt, be prepared to explain why—and provide documentation if needed.
Avoid submitting your professional license unless the payor specifically accepts it as a substitute.

pie

Need Help or Have a Question?

We know that credentialing doesn’t always follow a script. If something’s unclear or not covered here, reach out—we’re here to help.
📧
help@piehealthusa.com
⁠
​📞 800-799-3859 ​
piehealthusa.com
⁠
⁠




What Is a Business License?
Why Do Insurance Payors Ask for It?
Who Typically Needs a Business License?
Not Sure If You Need One?
If You’re Asked for One and Don’t Have It
Tips for a Smooth Credentialing Experience
Need Help or Have a Question?
Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.