How to Open a Private Therapy Practice in Ontario

1. Confirm your college registration

Before you accept a single client in private practice, your registration with the College of Registered Psychotherapists of Ontario (CRPO), the College of Psychologists (CPO), or the Ontario College of Social Workers and Social Service Workers (OCSWSSW) must be in the appropriate practice category. Most new private-practice therapists work under CRPO as an RP or RP (Qualifying).

• Log in to your college portal and confirm your practice status allows independent practice.
• If you're an RP (Qualifying), confirm your clinical supervision agreement is filed.
• Update your practice address, email, and telephone before you list a website.

2. Choose a business structure

Most solo therapists start as a sole proprietor and incorporate later. A Professional Corporation (PC) offers tax deferral and liability separation, but it costs $1,500–$3,000 to set up and requires a Certificate of Authorization from your college.

• Sole proprietor: Fast, cheap, income flows to your personal return. Best for the first 1–2 years.
• Professional Corporation: Consider once you're consistently netting over $100k/year.

3. Register your business name and CRA accounts

1. Register the business name through ServiceOntario ($60).
2. Open a CRA Business Number.
3. Register for HST once revenue exceeds $30k in any four consecutive quarters — psychotherapy services became HST-exempt in June 2024, but you may still owe HST on non-clinical revenue (workshops, consulting).
4. Open a dedicated business bank account. Never commingle client payments with personal funds.

4. Get the right insurance

Professional liability insurance is mandatory for CRPO registrants. BMS Group and Holman offer the two most-used policies for therapists in Ontario. Budget $400–$800/year for $2M professional + $2M commercial general liability coverage. Add cyber liability if you'll store client data digitally — which you will.

5. Pick an EHR before you build a website

Your EHR handles intake forms, scheduling, notes, invoicing, and secure messaging. Pick it early because it determines what your website's "Book now" button links to. The most-used options in Ontario are Jane, SimplePractice, and Owl Practice. We help you choose the one that fits your workflow, then configure intake forms, scheduling templates, and automation so it actually runs without you babysitting it.

How Clarity saves you time during startup

Opening a practice means juggling college portals, CRA accounts, insurers, and tech setup — often while you're still seeing clients at another job. Clarity can handle the admin build-out in parallel so you don't lose evenings to setup tasks.

• EHR setup: We configure your intake forms, consent templates, scheduling rules, and billing workflows so you don't learn the software by trial and error.
• Document templates: Informed consent, cancellation policy, fee schedule, and privacy policies drafted and ready for your lawyer or college review.
• Directory listings: Psychology Today, TherapyDen, Google Business Profile, and college directory submissions completed with consistent copy.
• Inquiry response system: A templated intake workflow with clear next steps so prospective clients hear back within hours, not days.

Most therapists we work with launch 4–6 weeks faster and start seeing clients sooner because the back office is already running before the first inquiry arrives.

6. Set up secure communication

• Use a business email on your own domain (e.g. hello@yourpractice.ca), not Gmail.
• Never message clinical information over SMS or standard email — route it through your EHR's secure portal.
• Set up a professional phone line: OpenPhone, Ruby, or your EHR's built-in voice option.

7. Draft your foundational documents

1. Informed consent + practice policies (cancellation, fees, confidentiality limits)
2. Intake questionnaire
3. Consent for release of information
4. Fee schedule
5. Records retention policy (CRPO requires 10 years post-final-session, or 10 years past age of majority for minors)

8. Build a simple website

Your website's job is to answer three questions in under 15 seconds: who do you help, how do you help, and how do I book? Anything else is optional. A well-optimized one-page site outperforms an over-designed five-page site every time.

9. Get listed where clients actually search

• Psychology Today (~$40 CAD/month) — still the highest-intent directory in Canada.
• TherapyDen (free)
• Google Business Profile (free) — critical for "therapist near me" searches
• Your college's public directory

10. Build the admin system before you need it

The #1 reason new private practices stall isn't lack of referrals — it's clinicians answering intake emails between sessions and losing prospective clients to slow response times. Decide now who responds to inquiries, how fast, and using what template. Most therapists we work with reach a full caseload 3–4 months faster once intake response is systematized.

Estimated startup budget

• College fees + insurance: $1,200/year
• Business registration: $60–$3,000 (sole prop vs PC)
• EHR: $50–$100/month
• Website + domain: $200 setup, $20/month hosting
• Psychology Today + Google Business: $40/month
• Phone line: $20–$40/month

Total year-one cash outlay: roughly $3,000–$5,000, plus your time.