Starting a Private Practice: Frequently Asked Questions by NASW Members
Marla Galvan, LICSW, LCSW-C, Senior Practice Associate, Clinical Social Work
Revised June 2026
NASW often receives inquiries from clinical social workers (CSWs) who are interested in starting a private practice. While CSWs are highly skilled mental health providers and knowledgeable in their specialty areas of practice, knowing how to open and run a business, panel with insurance, navigate state laws, and manage risk is a skill learned separately from clinical training.
To help guide CSWs through the process of opening a private practice, NASW has compiled a list of frequently asked questions from NASW members. This Tips & Tools for Social Workers answers those questions and provides resources to help them get started.
Getting Started
Q: Is a clinical license required to begin a private practice?
A: Yes, a clinical license is required in all states in which you plan to render services. Before starting your private practice, you should comply with the state licensing board requirements of the states that you plan to practice in. Visit the Association for Social Work Boards’ (ASWB) “Laws and Regulations database” to find and compare license requirements in all 50 states.
Q: What is an NPI number and how is it used?
A: A National Provider Identifier (NPI) is a unique identification number that identifies the provider rendering services. It is used by providers when submitting electronic claims and by insurance companies to support credentialing and verify a provider’s eligibility. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires every health or mental health provider seeking reimbursement to obtain an NPI number.
Q: How can I obtain an NPI number?
A: You may apply for an NPI number online on the National Plan and Provider Enumerations System (NPPES) website. Create an account and select the “Apply for an NPI” button to begin your application.
Q: How much professional liability insurance do I need?
A: Because CSWs practice in relatively high-risk situations, NASW recommends that you obtain the maximum amount of coverage allowed. Plans should be renewed annually to avoid gaps in coverage.
Q: How many years of social work experience do I need to start a private practice?
A: NASW recommends a minimum of two years of post-master’s experience in a supervised clinical setting. Check with the board of social work in your state for any licensure requirements that may vary from this recommendation.
Q: Should I use my social security number as the tax ID number for my practice?
A: It is best to obtain a tax ID number specifically for your practice to separate personal finances from your business finances.
Q: How do I get a tax ID number for my private practice?
A: You may obtain a tax ID number from the federal government by completing IRS form SS-4, available online from the Internal Revenue Service at www.irs.gov.
Q: Where may I obtain HIPAA forms?
A: NASW’s Legal Defense Fund provides HIPAA help for social workers. Visit the HIPAA Help for Social Workers webpage to access a set of HIPAA forms and sample documents that can be adapted to your clinical practice setting.
Q: Does NASW have practice guidelines for clinical social workers in private practice?
A: Yes, NASW has published two comprehensive guides focused on private practice. Clinical Social Workers in Private Practice: A Reference Manual offers information on business planning, risk management, reimbursement, and related topics. The Practice Standards for Clinical Social Workers provides performance benchmarks and describes the quality, ethical, and professional services CSWs should provide. Both publications are available for purchase at naswpress.org.
Q: Where can I find a list of psychotherapy codes that are needed to seek reimbursement?
A: NASW publishes articles and publications for members that discuss the psychotherapy codes and tips for billing. The Practice Perspectives and Tips and Tools series posted in the Clinical Social Work Practice section of the NASW website includes the following specific publications dedicated to explaining Current Procedural Terminology (CPT) codes required for billing:
Q: What fees should I charge?
A: There are several factors to consider when setting fees including the economy, geographic location, health insurance coverage, and fees charged by other mental health providers. Decide on an amount that is fair and reasonable for your practice, taking into consideration any contractual obligations under third-party payer agreements.
Q: Can I provide telehealth services within my state of practice and across state lines?
A: Currently, to provide telehealth services, you must meet the licensure requirements of both the state where you are located and the state where the client is physically located. If your state has joined the Social Work Interstate Compact, you will soon be able to apply for a multistate license to practice in other compact member states, making it easier to practice across state lines. For additional NASW recommendations regarding HIPAA-compliant platforms and other regulatory and practice considerations for providing mental health services to a client in another location, see the article Telemental Health: Legal Considerations for Social Workers.
Q: Should I continue clinical supervision?
A: Yes, it is best practice to continue with supervision or meet with a consultant on a regular basis to discuss cases. Supervision and consultation can help improve your clinical skills and can help with managing legal and liability concerns. Read NASW’s Best Practice Standards in Social Work Supervision for a general framework that promotes uniformity in social work supervision.
Q: How can I use Artificial Intelligence (AI) to support my practice?
A: NASW recommends that CSWs obtain ample training and education on the use of this rapidly evolving technology. AI mental health platforms have the potential to improve efficiency in practice. They also come with legal, clinical, and ethical risks. Familiarize yourself with state legislation that may regulate AI use and visit NASW’s AI and Social Work resources page for information and guidance with respect to this emerging area of practice.
Referrals
Q: What is the best way to seek referrals?
A: Marketing your practice is key to receiving referrals, especially if you are seeking referrals beyond health insurance companies. Invest in a website to advertise your practice and your specific skill set. Create a profile on an online referral network like Psychology Today and engage with local community partners, such as physicians’ offices. Network with colleagues and make connections through the MyNASW Community, the Help Starts Here website, or through the local NASW chapter in your state.
Q: How can I become a provider on health insurance provider panels?
A: To become credentialed with health insurance companies, start by creating a free profile on the DataSpring website . DataSpring, formerly known as the Council for Affordable Quality Healthcare (CAQH), allows you to share your self-reported professional information with the insurance companies you authorize at no cost. Complete your profile, upload the required documents, and verify your profile every 120 days. Then select the insurance companies with which you want to become paneled and locate their online provider portals. Submit an application to become an outpatient mental health provider and link your DataSpring profile to the insurer’s application. Make sure to research and select insurance providers who are active in your area.
Q: How can I become a Medicare provider?
A: The Centers for Medicare and Medicaid Services (CMS) outlines three steps necessary for becoming a Medicare provider:
- Obtain an NPI number.
- Use the online Provider Enrollment, Chain, and Ownership System (PECOS) application to complete the Medicare Enrollment Application and apply as a clinical social worker.
- Contact the Medicare Administrative Contractor (MAC) in the state(s) in which you want to provide services.
Visit the CMS website for more detailed information about these steps.
Resources
Q: What other NASW resources would be helpful in starting a private practice?
A: NASW invites you to view the resources offered across its digital platforms for support:
- Visit NASW’s Social Work Online CE Institute to access continuing education credits (CEs) focused on private practice, clinical treatment, ethics, supervision, and more. NASW members can receive free CEs and CEs at discounted rates.
- Contact the clinical practice email address, clinical.practice@socialworkers.org, developed to support NASW members seeking assistance with clinical practice, navigating insurance, reimbursement, coding, and credentialing.
- Join “An Hour with Private Practice: Questions & Answers,” a monthly webinar for NASW members that focuses on specific private practice topics and provides updates on clinical social work issues that affect mental health service delivery.
- Access the NASW Press Website for a list of clinical social work publications.
- View the Clinical Social Work section of the NASW website for clinical practice tools, professional development links, and policy news. Specific informational publications such as the Practice Perspectives and Tips and Tools are also available to help you navigate the complexities of private practice.
- Join the Private Practice Specialty Practice Section (SPS) for access to an online community of CSWs in private practice. NASW SPS members can receive specialized CEs through live practice-specific webinars, newsletters, and other professional development opportunities.