Reference
Medical Billing Business license
I am starting a home based Medical Billing Business. I have got my Tax ID and have someone working on my website. I do have a question on the business license though. What kind of license is this considered and where do I get it? Is there an online site or do I go to the county for it?
Answer:
Of course it depends on your location but I’m sure they are all similar. I actually have two business licenses – one issued by our county and one by our city. Of course if you’re not located in a city you only have to have the county license.
This is usually handled through your county or city department of revenue, and can usually be initiated on line. In our location of Jefferson County Alabama, the amount of the license is dependent on the revenue from the previous year. I think this year it cost us about $100 a year.
Our city license is similar – it should be administered by the City department of revenue. It usually has to be reviewed by someone but most municipalities are business friendly these days – they want the jobs and associated tax revenue a new business generates. The forms can usually be downloaded from their site. I think our city license cost about $150 this year.
Hope this helps and good luck!
Gina
Reader questions on this
Licences for working from home
I am a certified Coding and Billing specialist but am struggling to find the licensing requirements. I would like to obtain work from home as I am a new mom.
Crystal,
The only licensing requirements I am aware of is a business license to operate a billing/coding business from home. In my location I had to get a license from our town and one from the county. Of course that could vary depending on where you live. For me that totals about $250 a year.
I’m not aware of any states or local municipalities that require a license to perform billing and coding. For your particular state – Vermont – I didn’t see Medical Billing or Medical Coder listed in the Vermont Secretary of State Office of Professional Regulation. They list the professions over on the left of the page.
Hope this helps – Thanks for visiting the site!
Gina
Sales tax on billing services
(Texas)
I am a new owner of a medical billing business. I was recently told by a prospective client that her current contracted biller does not handle private pay collections because she (the biller) would have to charge sales tax. Does this sound accurate? I am in Texas.
According to the publication on the Texas state Comptroller Site for taxable services, the only thing I could find is the mention of Debt Collection that sayes:
“Any activity performed for consideration to collect or adjust a delinquent debt, to collect or adjust a claim, or to repossess property subject to a claim, including activity performed in furtherance of the satisfaction or compromise of a debt or claim.”
This may be where the prospective client or their current billing service is getting this.
I haven’t heard of this being applied to private payments before for a health care provider.
You may want to contact the Texas State Comptrollers office here and and ask them about this particular service or situation. I know some state tax agencies like ours (Alabama) are very helpful in answering these type of questions.
I’ll also post on the site so others can comment on their experience.
Thanks for the question.