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HarleyBabe

New TPA FIrm

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If an individual who is ASPPA credentialled leaves a firm to start their own TPA Firm where they will only employ themselves bascially with a small book of clients, is there a state license you must obtain? Or do you just need the E & O insurance to cover you.

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If an individual who is ASPPA credentialled leaves a firm to start their own TPA Firm where they will only employ themselves bascially with a small book of clients, is there a state license you must obtain? Or do you just need the E & O insurance to cover you.

I know several that have done it without a state license, but it might depend on the requirements of your state.

E&O is not a requirement; you'll have to decide whether it makes sense for you.

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Be careful about sales tax. I know WV has come after some TPA firms claiming that they were not providing "professional" service and therefore were subject to sales tax.

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