Private practice runs on small, repeating money movements: an Aetna ACH deposit on Tuesday, a self-pay session Wednesday, a supervision fee out on Friday, a quarterly tax payment looming. The right business checking account keeps those payments organized, helps preserve your PLLC's liability separation, and avoids $15–$30 in monthly maintenance fees on a solo caseload.

The Bureau of Labor Statistics classifies substance abuse, behavioral disorder, and mental health counselors as a fast-growing occupation in the United States, which means more clinicians are opening private practices and looking for business banking that fits how a therapy practice actually gets paid.

Why therapists and counselors need a dedicated business bank account

If you formed an LLC, PLLC, or PC to run your practice, mixing personal and business money can weaken the liability separation your entity was created to provide. Keeping personal and practice finances separate helps document that the business is operated separately from the owner, which is one reason the SBA recommends a dedicated business checking for LLC owners.

The U.S. Small Business Administration recommends separating personal and business finances as a foundational step for any new business, both to protect liability status and to simplify tax reporting.

Beyond the legal argument, there are three practical reasons private-practice clinicians want a dedicated account:

• Cleaner taxes. Schedule C filing for sole proprietors or Form 1120-S filing for S-corps is easier when deposits and expenses are already in one business account. Fewer reclassifications, less bookkeeper time, lower audit risk.
• Insurance reimbursements route correctly. Aetna, Blue Cross Blue Shield, UnitedHealthcare, and Medicare disburse claims via ACH. Those funds belong in a business account tied to your EIN and NPI, not a personal checking account.

• Self-pay and sliding-scale reconciliation. Superbills, cash-pay sessions, and out-of-network reimbursements are simpler to match against your practice management software when they hit a dedicated account.

What therapists should look for in a business bank

A good business account for a therapy practice covers seven specific things:

1. No monthly fees and no minimum balance. A solo LMFT seeing 15 clients a week shouldn't lose a few hundred dollars a year to maintenance fees. Some traditional business checking accounts waive the monthly fee only above a set minimum balance or with a card-swipe minimum.
2. ACH deposit compatibility with practice management software. SimplePractice, TherapyNotes, and Headway push settled funds to your bank via standard ACH routing. You give them a routing and account number; no native integration is required.
3. A way to accept self-pay card payments without opening a separate merchant account. Look for built-in invoicing with a payment link, or a Stripe connection.
4. Sub-accounts or buckets so you can set aside a portion of each deposit for quarterly estimated taxes, plus separate pools for malpractice, continuing education, and licensing.
5. Support for LLC, PLLC, and PC entities. Many state licensing boards require therapy practices to form as a professional entity (PLLC or PC). Not every online business banking option opens accounts for those.
6. ACH payroll and 1099 payments for group practices employing W-2 associates or paying 1099 supervisors and contractors.
7. FDIC insurance on deposits through the partner bank.

Why Novo works for therapists and counselors

Novo is a business banking platform (a fintech, not a bank) with $0 monthly fees, no minimum balance, ACH transfers, invoicing, and Reserves that can help solo and small group therapy practices organize cash flow. Here is how its features align with typical practice needs.

No monthly fees, no minimum balance. Novo charges $0 in monthly maintenance fees and requires no minimum balance to open or keep the account. Novo does not offer overdraft.

ACH transfers and incoming wires. Sending standard ACH to pay a supervisor or a landlord is included at no additional cost per the current fee schedule. Incoming wires arrive at no cost. Wires are rare in therapy but more common in group practices receiving grants or larger private-pay retainers.

FDIC-insured deposits. Deposits held through Novo's partner bank are FDIC-insured up to $250,000 per depositor, per insured bank, per ownership category.

Entity coverage that matches licensing boards. Novo opens accounts for LLCs, PLLCs, PCs, and sole proprietors, which are the entity types most state licensing boards allow or require for therapy practices. If your state requires you to practice as a PLLC (New York, North Carolina, Texas, and others), Novo can open the account under that entity, subject to standard verification.

ACH from SimplePractice, TherapyNotes, and Headway. Novo accepts ACH deposits from SimplePractice, TherapyNotes, and Headway when therapists enter their Novo routing and account number in those platforms. Funds land in your Novo checking account on the platform's normal payout schedule. This is standard ACH routing, not a native one-click integration.

Reserves for tax and expense buckets. Novo Reserves are business sub-accounts that let you allocate money from your main balance into up to 20 separate Reserves inside the same account. A typical setup for a solo therapist:

• Reserve 1: Federal + SE tax set-aside
• Reserve 2: State income tax (varies by state)
• Reserve 3: Malpractice premium (annual renewal)
• Reserve 4: CEUs and licensing renewals
• Reserve 5: Rent or teletherapy platform fees
• Reserve 6: Emergency / three months of overhead

Self-employment tax alone is 15.3% (12.4% Social Security plus 2.9% Medicare) on net earnings, before federal income tax.

Many solo clinicians use 25–30% of each deposit as a planning target for taxes, then confirm the right percentage with a CPA or tax professional.

Invoicing and Stripe for self-pay clients. Novo Invoicing sends a payment link for self-pay or out-of-network clients. You can also connect Stripe if you already use it for a website or booking flow. Funds land in your Novo checking and sync to QuickBooks, which makes superbill reconciliation a matter of matching amounts, not typing them.

Payroll and contractor payments. Group practices paying W-2 associate clinicians can run payroll through Gusto or a similar provider debiting the Novo account. 1099 supervision fees or W-9 contractor payments go out by ACH directly.

Where Novo may not fit your practice

Novo is not the right choice for every practice.

• No cash deposits. Novo does not accept cash deposits. If a meaningful share of your clients pay copays in cash, you will need either a traditional bank with branch access or a workaround (a money order, or a separate cash-handling account you sweep from).
• No physical branches. Support is digital-first through chat, email, and phone. If you prefer in-person service, a community bank or credit union may be a better fit.
• No Business Associate Agreement. Novo is a business banking platform (a fintech, not a bank) and does not sign BAAs. HHS defines covered entities and business associates under HIPAA, and HIPAA's Privacy and Security Rules apply to those parties.

Keep names, diagnoses, client IDs, and other protected health information out of transaction memos; use neutral descriptions such as "session payment" and keep PHI inside HIPAA-aware tools like SimplePractice, TherapyNotes, or a HIPAA-compliant card processor. Novo receives only the settled dollars.

• Lockbox and heavy outbound wires. Practices needing lockbox services for paper insurance checks, or sending frequent large outbound wires, may fit a traditional business bank better.

How to open a Novo account for your therapy practice

The application is fully online. Have these ready before you start:

• EIN from the IRS (free at irs.gov; takes about 15 minutes online)
• Formation documents: articles of organization or incorporation, plus the operating agreement for an LLC/PLLC or bylaws for a PC
• Government-issued photo ID for each beneficial owner
• Business address (a home address is fine for solo practice)
• NPI number if you plan to bill insurance

If you have not formed an entity yet, you can apply as a sole proprietor using your SSN and business name. Many solo LMFTs and LCSWs start this way. If you later form a PLLC or PC, contact Novo support for the current process to update or open the correct business account.

Once approved:

1. Log in to your SimplePractice, TherapyNotes, or Headway account.
2. Enter your Novo routing number and account number in the payout or payer settings.
3. Confirm the microdeposit if the platform sends one.
4. Set up Reserves in Novo for taxes, malpractice, CEUs, and licensing.
5. Connect QuickBooks or Xero if you use it.

Insurance payers (Aetna, BCBS, UnitedHealthcare, Medicare, and others) also collect banking information through their provider portals or through platforms like Availity and Change Healthcare. Update the payer records with your Novo routing and account number so ERAs and EFTs land in the business account.

What should therapists include on a superbill for out-of-network clients?

Self-pay clients seeking out-of-network reimbursement need a superbill with specific fields. Confirm required superbill fields, CPT codes, diagnosis coding, and place-of-service codes with the payer, your EHR, or a billing professional before sending superbills to clients. Here is a plain-text template you can adapt:

SUPERBILL

Provider: [Full name, credentials]
NPI: [10-digit NPI]
Tax ID (EIN): [XX-XXXXXXX]
Practice address: [Street, City, State ZIP]
Practice phone: [XXX-XXX-XXXX]
License number: [State license #]

Client: [Full legal name]
Client DOB: [MM/DD/YYYY]
Client address: [Street, City, State ZIP]

Date of service: [MM/DD/YYYY]
Place of service code: [11 office / 02 telehealth]
CPT code: [90791 intake / 90837 60-min psychotherapy / 90834 45-min]
ICD-10 diagnosis code: [e.g., F41.1]
Session fee: $[XXX.XX]
Amount paid by client: $[XXX.XX]
Payment method: [Card / ACH / Check]

Provider signature: __________________  Date: __________

Paste that block into ChatGPT or Claude with a prompt like: "Turn this superbill template into a fillable PDF I can send clients, with editable form fields for every bracketed value and a signature line." You can also ask for it as a Google Sheet where each row is a session and totals roll up by month, or a Word document you can save as your practice's master template. Keep the finished file inside SimplePractice, TherapyNotes, or another HIPAA-aware tool. Do not email superbills from a personal Gmail account.

Clinicians who share some of the same self-pay and cash-mixed billing patterns — massage therapists and chiropractors, for example — face similar reconciliation questions and can use a comparable Reserves setup.

What do therapists ask before opening a Novo account?

Can I accept insurance reimbursements from Aetna, BCBS, United, and Medicare into a Novo account?

Yes. Many insurance payers can send reimbursements by ACH to a U.S. business checking account with valid routing and account numbers, including Novo, after the payer validates the account. You enter your Novo banking details in the payer's provider portal (or through Availity, Change Healthcare, or your clearinghouse) and payments arrive on the payer's normal schedule.

Is Novo HIPAA compliant, and can I store client payment info in it?

Novo is a business banking platform (a fintech, not a bank), not a HIPAA-covered entity, and it does not sign Business Associate Agreements. Keep protected health information out of transaction memos, and keep client records, session notes, and card-on-file information inside HIPAA-aware tools like SimplePractice, TherapyNotes, or a HIPAA-compliant card processor. Novo receives only the money that has already settled.

Does Novo accept PLLC and PC entities required by my state licensing board?

Yes. Novo opens business accounts for LLCs, PLLCs, PCs, and sole proprietors, covering the entity types most state licensing boards require or allow for therapy practices. You will upload your articles of organization or incorporation during the application.

Can I use Novo if I'm a solo LMFT or LCSW without an LLC yet?

Yes. Sole proprietors can apply using an SSN and business name. Many solo clinicians open as a sole proprietor and later convert to a PLLC. If you take that step, contact Novo support for the current process to update your account documentation.

Does Novo work for group practices paying W-2 associates or 1099 supervisors?

Yes. Novo supports ACH payroll (via Gusto or a comparable provider) and direct ACH payments to 1099 contractors and supervisors, so a group practice can pay associate clinicians on payroll and pay 1099 supervision fees from the same business account.

Does Novo integrate with SimplePractice or TherapyNotes?

Not as a native one-click integration. SimplePractice, TherapyNotes, and Headway disburse funds via standard ACH. You enter your Novo routing and account number in the platform's payout settings and payments land in your Novo checking account on the platform's normal schedule.

How much should I set aside for taxes from each deposit?

A common planning target for solo clinicians is 25–30% of net income, which covers self-employment tax (15.3%) plus federal income tax. State income tax is on top of that. The IRS generally requires quarterly estimated tax payments from anyone expecting to owe $1,000 or more for the year.

A Novo Reserve labeled "Taxes" that you fund with every deposit removes the surprise from April 15. Confirm the right percentage with a CPA or tax professional.

What if my practice takes cash copays?

Novo does not accept cash deposits. If cash is a meaningful share of your revenue, either use a traditional bank with branch access for cash and Novo for everything else, or convert cash to a money order and mail-deposit only occasionally. Evaluate your cash-handling volume before choosing your primary business bank.