Choosing the right business structure is a crucial decision for solo marriage and family therapists in California. The choice of business entity determines how the marriage and family therapy practice is taxed, the extent of personal liability protection and personal asset protection available to the marriage and family therapist, and the administrative requirements the marriage and family therapist will need to manage in operating the marriage and family therapy practice.

A future article titled “What are the Business Structure Options for Two or More Licensed Marriage and Family Therapists in California?” will discuss the additional options available when two or more marriage and family therapists start practicing marriage and family therapy together, however, for marriage and family therapists practicing marriage and family therapy solo in California, the options are limited to sole proprietorships and California Professional Marriage and Family Therapy Corporations.

This article provides an overview of the various business structure options available to marriage and family therapists practicing marriage and family therapy solo in California, helping these marriage and family therapists to make an informed choice that aligns with their professional goals and liability concerns in the most tax efficient format possible.

Executive Summary: Putting the Conclusion First for Busy Licensed Marriage and Family Therapists

Summary of Practicing Marriage and Family Therapy as a Sole Proprietor

The primary benefit of a sole proprietorship for marriage and family therapists is its simplicity. There are few legal formalities to establish a sole proprietorship and tax reporting is equally straightforward. However, a sole proprietorship is not a separate legal entity, which means that marriage and family therapist sole proprietors are personally liable for all debts, liabilities, obligations, and legal judgments (including malpractice liability) against their marriage and family therapy practice. The lack of a separate legal entity also means there is no distinction between personal and professional business assets for marriage and family therapist sole proprietors, so the debts, liabilities, and legal judgments for which the marriage and family therapist sole proprietor is liable are satisfied from the personal assets of the marriage and family therapist.

Summary of Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

While inherently more complex than marriage and family therapist sole proprietorships, the complexity of a California Professional Marriage and Family Therapy Corporation may be reduced by working with the experienced corporate attorneys at San Diego Corporate Law. As a separate legal entity, California Professional Marriage and Family Therapy Corporations significantly reduce liability risks and are more tax efficient for most marriage and family therapists. For marriage and family therapists in high-liability practices, this reduction in risk can be substantial. The separate legal entity status of California Professional Marriage and Family Therapy Corporations also means there is a distinction between personal and professional business assets for the marriage and family therapist, meaning the debts, liabilities, and legal judgments against the marriage and family therapy practice are not generally satisfied from the personal assets of the marriage and family therapist.

Choosing Between a Sole Proprietorship and a California Professional Marriage and Family Therapy Corporation

For most marriage and family therapists, the California Professional Marriage and Family Therapy Corporation is the right chose because the tax benefits coupled with limited liability protection and ability to separate personal assets from professional business assets far outweighs the increased administrative complexity compared to practicing marriage and family therapy as a sole proprietorship.

Contact San Diego Corporate Law for Assistance Selecting and Forming the Best Business Structure for Your Marriage and Family Therapy Practice

Take the next step toward securing the ideal business structure for your marriage and family therapy practice, whether that is a California Professional Marriage and Family Therapy Corporation or another business structure. Contact the experienced corporate attorneys at San Diego Corporate Law today to schedule a consultation and receive personalized, expert guidance tailored to your needs. Our team is here to help you make informed decisions with confidence.

Practicing Marriage and Family Therapy as a Sole Proprietor

Practicing marriage and family therapy as a sole proprietor is the simplest and most straightforward business structure for solo marriage and family therapists in California. It requires minimal paperwork to set up compared to other business entity options and offers flexibility in managing the marriage and family therapy practice. However, along with these advantages come distinct disadvantages that marriage and family therapists must consider carefully before considering sole proprietorship as the business structure for their marriage and family therapy practice.

Administrative Requirements of Practicing Marriage and Family Therapy as a Sole Proprietor

One of the primary benefits of a sole proprietorship for practicing marriage and family therapy is the simplicity of establishing a sole proprietorship and the continued simplicity of operating as a sole proprietor.

Sole proprietorships require minimal effort to establish, with few legal formalities involved. Typically, the initial steps of setting up a sole proprietorship include obtaining a local business license to operate legally in the municipal jurisdiction in which the practice will operate and, if applicable, registering a fictitious business name (often referred to as a d/b/a).

Unlike other business structures, there is no need to file complex paperwork or create a formal business entity, which saves both time and money, but as discussed below, there are tradeoffs in exchange for this simplicity.

Taxation of Licensed Marriage and Family Therapist Sole Proprietors

Tax considerations are a critical aspect to be examined when planning to practice marriage and family therapy as a sole proprietor. Sole proprietors are subject to business income taxation, self-employment taxation, and additional Medicare taxes. Understanding how these taxes apply to marriage and family therapy practices is essential for marriage and family therapists when choosing a business structure in which to operate their marriage and family therapy practice.

Business Income Taxation When Practicing Marriage and Family Therapy as a Sole Proprietor

For marriage and family therapist sole proprietors, business income taxation is both simple and straightforward compared to that of other business entities. Sole proprietors report their business income and expenses on Schedule C (Profit or Loss from Business) to their personal income tax return, using Internal Revenue Service Form 1040. This allows marriage and family therapists to consolidate both personal and business income on a single tax form.

Self-Employment Tax When Practicing Marriage and Family Therapy as a Sole Proprietor

While simple and straightforward, taxation of marriage and family therapist sole proprietors is not tax efficient. One significant consideration for marriage and family therapist sole proprietors is self-employment tax. Since a sole proprietor does not receive a salary from their business, they are responsible for paying self-employment taxes to cover Social Security and Medicare contributions. This self-employment tax is reported on Schedule SE, with the current rate at the time of this writing totaling 15.3% of net profit in addition to federal and state income taxes (however, a sole proprietor can deduct half of the self-employment tax paid as an adjustment on their tax return, which provides some financial relief).

Additional Medicare Tax When Practicing Marriage and Family Therapy as a Sole Proprietor

High-earning marriage and family therapist sole proprietors may also be subject to the Additional Medicare Tax. This tax applies to individuals whose income exceeds certain thresholds, which are determined based on filing status. For marriage and family therapist sole proprietors filing as single, the threshold is $200,000, while it is $250,000 for marriage and family therapist sole proprietors filing a joint tax return with a spouse. The Additional Medicare Tax rate is 0.9% and applies only to the earnings above the specified threshold. Sole proprietors must calculate and report this tax on Form 8959, ensuring compliance with Internal Revenue Service requirements. It is important for high-earning marriage and family therapists to account for this additional tax in their financial planning to avoid unexpected liabilities.

Conclusions About Taxation of Licensed Marriage and Family Therapist Sole Proprietors

Understanding the tax implications of a sole proprietorship is integral when deciding which of the available business entities will be the most tax efficient, and understanding self-employment and the Additional Medicare Tax liabilities is the first step in planning and efficiently managing future tax liabilities.

Personal Liability Protection and Personal Asset Protection When Practicing Marriage and Family Therapy as a Sole Proprietor

Practicing marriage and family therapy as a sole proprietor, while simple, also comes with challenges regarding personal liability protection and asset protection because a sole proprietorship is not a separate legal entity, and thus does not offer a legal distinction between the marriage and family therapist and the marriage and family therapy practice.

Personal Liability for Licensed Marriage and Family Therapists When Practicing Marriage and Family Therapy as a Sole Proprietor

One of the primary risks faced by marriage and family therapist sole proprietors is personal liability. The lack of distinction between the marriage and family therapist and the marriage and family therapy practice means that the marriage and family therapist sole proprietor is personally liable for all debts, liabilities, obligations, and legal judgments incurred by the marriage and family therapy practice personally, including claims for professional negligence, better known as malpractice, for errors and omissions.

Personal Asset Protection for Licensed Marriage and Family Therapists When Practicing Marriage and Family Therapy as Sole Proprietors

The lack of distinction between the marriage and family therapist and the marriage and family therapy practice that makes personal liability a primary risk to marriage and family therapist sole proprietors also means that all assets of the marriage and family therapist, be they strictly personal assets or assets used in the marriage and family therapy practice, are subject to claims by creditors and legal claimants against the personal assets of the marriage and family therapist (such as homes, bank accounts, investments, and other property).

Conclusions About Personal Liability and Asset Protection for Licensed Marriage and Family Therapist Sole Proprietors

The exposure to personal liability for debts, liabilities, obligations, and legal judgments (including those for professional negligence) coupled with the inability to separate personal assets from professional business assets underscores the importance for marriage and family therapists choosing a business structure for their marriage and family therapy practice to understand liability risks and take proactive measures to safeguard their personal wealth and future earnings from such claims.

Conclusions About Practicing Marriage and Family Therapy as a Sole Proprietor

When deciding whether to practice marriage and family therapy as a sole proprietor, it is essential to weigh the benefits and drawbacks of this business structure. While marriage and family therapist sole proprietorships offer simplicity to marriage and family therapists, marriage and family therapist sole proprietorships come with significant risks and limitations. The advantages and disadvantages of practicing marriage and family therapy as a sole proprietor are compared below together with a recommendation for when a sole proprietorship is the best legal structure for practicing marriage and family therapy.

Advantages of Sole Proprietorship for Licensed Marriage and Family Therapists

The primary benefit of a sole proprietorship for practicing marriage and family therapy is its simplicity. There are few legal formalities to establish a sole proprietorship and tax reporting is equally straightforward.

Disadvantages of Sole Proprietorship for Licensed Marriage and Family Therapists

While sole proprietorships are simple to establish, they carry significant risks and are not tax efficient for most marriage and family therapists.

A sole proprietorship is not a separate legal entity, which means that marriage and family therapist sole proprietors are personally liable for all debts, liabilities, obligations, and legal judgments (including malpractice liability). For marriage and family therapists in high-liability marriage and family therapy practices, this risk can be substantial.

The lack of a separate legal entity also means there is no distinction between personal and professional business assets for marriage and family therapist sole proprietors, meaning the debts, liabilities, and legal judgments for which the marriage and family therapist sole proprietor is liable are satisfied from the personal assets of the marriage and family therapist.

When is a Sole Proprietorship the Right Business Structure for Practicing Marriage and Family Therapy?

A sole proprietorship can be an ideal option for marriage and family therapists starting small-scale marriage and family therapy practices with the expectation of low net profit and low liability risks. However, before choosing to practice marriage and family therapy as a sole proprietor, it is essential to weigh the benefits of simplicity against the risks of personal liability and the future growth of the marriage and family therapy practice. For marriage and family therapists in high-risk marriage and family therapy practice areas or those who anticipate growth in their marriage and family therapy practice may want to avoid practicing marriage and family therapy as a sole proprietorship in favor of a business entity that is more tax efficient and provides limited liability protection together with the separation of personal assets from professional business assets.

For a more detailed understanding of the differences between professional sole proprietorships and California Professional Marriage and Family Therapy Corporations and when a sole proprietorship is the best choice of business structure for marriage and family therapy practices, see “When Not to Use a California Professional Marriage and Family Therapy Corporation” for more information.

Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

Practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation is not as simple or straightforward as practicing marriage and family therapy as a sole proprietor, however, a California Professional Marriage and Family Therapy Corporation provides the tax efficiency, limited liability protection, and separation of personal assets of the marriage and family therapist from the professional business assets of the marriage and family therapy practice that marriage and family therapist sole proprietorships lack.

Administrative Requirements of Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

In order to enjoy the tax efficiency, limited liability protection, and separation of personal assets a California Professional Marriage and Family Therapy Corporation provides, marriage and family therapists are faced with the complexity of establishing a California Professional Marriage and Family Therapy Corporation. While this formation process is complex, marriage and family therapists may rely upon the experienced corporate attorneys at San Diego Corporate Law to draft and file all the required legal documents for the California Professional Marriage and Family Therapy Corporation, leaving marriage and family therapists with essentially the same tasks they would undertake to establish a sole proprietorship. It is also worth noting that legal fees and costs of forming a California Professional Marriage and Family Therapy Corporation are usually qualified business expenses that are tax deductible.

In addition to the initial formation of a California Professional Marriage and Family Therapy Corporation, every year after the initial formation of a California Professional Marriage and Family Therapy Corporation a Statement of Information must be filed with the California Secretary of State and a shareholder and board of directors meeting must be held. Just as with the formation of a California Professional Marriage and Family Therapy Corporation, San Diego Corporate Law can assist in the annual requirements of practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation.

Despite the additional administrative requirements of practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation compared to practicing marriage and family therapy as a sole proprietorship, an experienced corporate attorney can make the difference in requirements comparable.

For a more detailed understanding of the administrative requirements for forming and maintaining a California Corporation, see “The 7 Steps for Forming a California Professional Marriage and Family Therapy Corporation” for more information.

Taxation of California Professional Marriage and Family Therapy Corporations

As with marriage and family therapist sole proprietorships, tax considerations are a critical aspect to be examined when planning to practice marriage and family therapy with a California Professional Marriage and Family Therapy Corporation. While marriage and family therapists practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation are subject to business income taxation, payroll taxes for wages, and franchise taxes paid to the California Franchise Tax Board, marriage and family therapists practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation are not subject to self-employment taxation or additional Medicare taxes. Understanding how these taxes apply to marriage and family therapy practices is essential for marriage and family therapists choosing a business structure in which to operate their marriage and family therapy practices.

Business Income Taxation When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

A California Professional Marriage and Family Therapy Corporation is by default taxed as a personal service corporation (sometimes referred to as a professional service corporation), which is essentially a C Corporation (commonly referred to as a C-Corp) wherein corporate taxes applied to corporate profits are taxed directly at the federal and state levels at the corporate income tax rate, and any distributed dividends are subject to taxation again against the individuals receiving the dividends (referred to as “double taxation”). However, a California Professional Marriage and Family Therapy Corporation may (and almost always should) elect to be treated as an S Corporation (commonly referred to as an S-Corp), which fundamentally changes how income is taxed. This article will focus on S Corporation taxation of California Professional Marriage and Family Therapy Corporations.

Electing S Corporation status alters the tax treatment by enabling pass-through taxation. This means the profits and losses of the California Professional Marriage and Family Therapy Corporation after payment of a reasonable salary to the marriage and family therapist are passed directly to the marriage and family therapist as the shareholder who in turn reports those profits on their personal income tax returns to pay federal income tax and state income tax on the net profit of the California Professional Marriage and Family Therapy Corporation to pay personal income tax of the net profits of the marriage and family therapy practice.

For more information about the election of S Corporation status for a California Professional Marriage and Family Therapy Corporation, see “Can a California Professional Marriage and Family Therapy Corporation Be an S-Corp?” for more information.

Self-Employment Tax When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

Unlike marriage and family therapist sole proprietorships, which require the marriage and family therapist sole proprietor to pay self-employment tax on the entire net profit of the professional practice, the marriage and family therapist-shareholder of a California Professional Marriage and Family Therapy Corporation is not subject to self-employment taxes.

Instead of self-employment taxes on the entire net profit of the marriage and family therapy practice, with a California Professional Marriage and Family Therapy Corporation employee and employer contributions to payroll tax are only paid on the reasonable salary of the marriage and family therapist. While the sum of the employee and employer contributions total 15.3% (the same percentage as self-employment tax), the calculation of the tax is based upon the reasonable salary of the marriage and family therapist only and not the net profit of the California Professional Marriage and Family Therapy Corporation, which may result in significant annual tax savings compared to a sole proprietorship.

Additional Medicare Tax When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

As discussed above for marriage and family therapist sole proprietorships, the Additional Medicare Tax is an extra 0.9% tax applied to earned income exceeding certain thresholds. However, because the Additional Medicare Tax is only applied to earned income and the net profit of a California Professional Marriage and Family Therapy Corporation is not deemed to be “earned” income, the Additional Medicare Tax would only be applicable to marriage and family therapists practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation if the reasonable salary of the marriage and family therapist exceeded the thresholds, meaning for all intents and purposes, practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation does not subject marriage and family therapists to the Additional Medicare Tax.

Annual Franchise Tax for California Professional Marriage and Family Therapy Corporations

California Professional Marriage and Family Therapy Corporations must pay pay California corporate taxes in the form of an annual franchise tax that marriage and family therapist sole proprietorships do not pay. The franchise tax paid by a California Professional Marriage and Family Therapy Corporation taxed as an S Corporation is 1.5% of net profit with a minimum of $800 annually. While this is a tax not paid by marriage and family therapist sole proprietorships, the annual franchise tax is very small in comparison to self-employment taxes and the Additional Medicare Taxes paid by marriage and family therapist sole proprietors.

Conclusions About Taxation of California Professional Marriage and Family Therapy Corporations

Understanding the tax benefits of a California Professional Marriage and Family Therapy Corporation is integral when deciding which of the available business entities will be the most tax efficient, and understanding self-employment and the Additional Medicare Tax liabilities is the first step in planning and efficiently managing future tax liabilities.

For a more detailed understanding of the taxation of California Professional Marriage and Family Therapy Corporations, see “What Tax Benefits Does a California Professional Marriage and Family Therapy Corporation Provide?” for more information.

Personal Liability Protection and Personal Asset Protection When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

Practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation, while more complex than practicing marriage and family therapy as a sole proprietorship, overcomes many of the personal liability protection and asset protection shortcomings of marriage and family therapist sole proprietorships. A California Professional Marriage and Family Therapy Corporation is a separate legal entity distinct from the marriage and family therapist, thus offering a legal distinction between the marriage and family therapist and the marriage and family therapy practice as well as personal and business assets of the marriage and family therapist.

Personal Liability Protection for Licensed Marriage and Family Therapists When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

Practicing marriage and family therapy with a California Professional Marriage and Family Therapy Corporation resolves most of the risks faced by marriage and family therapist sole proprietors for personal liability. California Professional Marriage and Family Therapy Corporations provide a separate legal entity distinct from the marriage and family therapist, meaning the marriage and family therapist is generally not personally liable for the debts, liabilities, obligations, and legal judgments incurred by the marriage and family therapy practice.

Under California law, claims for professional negligence, better known as malpractice, for errors and omissions of marriage and family therapists are personal to the marriage and family therapists and not shielded by the existence of the California Professional Marriage and Family Therapy Corporation, however, malpractice is an insurable risk and appropriately provisioned malpractice insurance may be used to indemnify the marriage and family therapist from this risk.

Personal Asset Protection for Licensed Marriage and Family Therapists When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

The separate legal entity and distinction between the marriage and family therapist and the marriage and family therapy practice provided by a California Professional Marriage and Family Therapy Corporation means that, unlike a sole proprietorship, the California Professional Marriage and Family Therapy Corporation separates the personal assets of the marriage and family therapist from professional business assets of the marriage and family therapy practice. Therefore, claims by creditors and legal claimants against the California Professional Marriage and Family Therapy Corporation are generally limited to the professional business assets of the California Professional Marriage and Family Therapy Corporation and are not satisfied against the personal assets (such as homes, bank accounts, investments, and other property) of the marriage and family therapist.

Conclusions About Personal Liability and Asset Protection When Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

The limitation of personal liability for debts, liabilities, obligations, and legal judgments against the California Professional Marriage and Family Therapy Corporation coupled with the ability to separate personal assets from professional business assets makes the use of a California Professional Marriage and Family Therapy Corporation the choice for marriage and family therapists who wish to limit their personal liability and protect their personal wealth and future earnings from most claims arising out of their marriage and family therapy practice.

For a more detailed understanding of the liability protection and asset protection of California Professional Marriage and Family Therapy Corporations, see “What Liability Protection Does a California Professional Marriage and Family Therapy Corporation Provide?” for more information.

Conclusions About Practicing Marriage and Family Therapy with a California Professional Marriage and Family Therapy Corporation

When deciding if practicing marriage and family therapy as a California Professional Marriage and Family Therapy Corporation is worth the additional cost and administrative requirements, it is essential to weigh the benefits and drawbacks of this business structure. While California Professional Marriage and Family Therapy Corporations are more complex, California Professional Marriage and Family Therapy Corporations resolve many of the significant risks and limitations inherent to practicing marriage and family therapy as a sole proprietorship. The advantages and disadvantages of operating with a California Professional Marriage and Family Therapy Corporation are compared below together with a recommendation for when a California Professional Marriage and Family Therapy Corporation is the best legal structure for practicing marriage and family therapy.

Advantages of California Professional Marriage and Family Therapy Corporations

While practicing marriage and family therapy as a sole proprietorship is simple to establish, doing so carries significant risks and is not tax efficient for most marriage and family therapy. California Professional Marriage and Family Therapy Corporations significantly reduce liability risks and are more tax efficient for most marriage and family therapy.

A California Professional Marriage and Family Therapy Corporation is a separate legal entity, which means the marriage and family therapist is generally shielded from personally liable for debts, liabilities, obligations, and legal judgments (other than the insurable risk of malpractice liability). For marriage and family therapists in high-liability marriage and family therapy practices, this reduction in risk can be substantial.

The separate legal entity status also means there is a distinction between personal and professional business assets for marriage and family therapists, meaning the debts, liabilities, and legal judgments against their marriage and family therapy practice are not generally satisfied from the personal assets of the marriage and family therapist.

Disadvantages of California Professional Marriage and Family Therapy Corporations

The primary benefit of a sole proprietorship is its simplicity, and in turn the primary disadvantage of a California Professional Marriage and Family Therapy Corporation is the relative complexity of formation and operation. However, marriage and family therapists may rely upon the experienced corporate attorneys at San Diego Corporate Law to draft and file all the required legal documents for establishing and maintaining the California Professional Marriage and Family Therapy Corporation, leaving these marriage and family therapists with essentially the same tasks they would undertake to establish and maintain a sole proprietorship.

When is a California Professional Marriage and Family Therapy Corporation the Right Business Structure for Practicing Marriage and Family Therapy?

A California Professional Marriage and Family Therapy Corporation can be an ideal option for marriage and family therapists starting marriage and family therapy practices based upon the tax efficiency, limited liability protection, and separation of personal assets from professional business assets that California Professional Marriage and Family Therapy Corporations provide. Small-scale marriage and family therapy practices with the expectation of revenue growth can benefit from starting as a California Professional Marriage and Family Therapy Corporation to avoid the future need to reestablish the marriage and family therapy practice as revenue grows. Similarly, small-scale marriage and family therapy practices in high-risk practice areas may benefit from the limited liability protection and separation of personal assets from professional business assets provided by a California Professional Marriage and Family Therapy Corporation regardless of revenue or profitability.

For a more detailed understanding of the differences between marriage and family therapist sole proprietorships and California Professional Marriage and Family Therapy Corporations, and when a California Professional Marriage and Family Therapy Corporation is the best choice of business structure for a professional practice, see “When to Use a California Professional Marriage and Family Therapy Corporation” and “Sole Proprietorship vs Professional Marriage and Family Therapy Corporation in California” for more information.

Licensed Marriage and Family Therapists in California May Not Practice Marriage and Family Therapy as a Limited Liability Company (LLC) or Professional Limited Liability Company (PLLC)

A The experienced corporate attorneys at San Diego Corporate Law are frequently asked about limited liability companies and professional limited liability companies, so this topic will be briefly discussed here.

California law explicitly prohibits marriage and family therapists and other mental health professionals from operating their practices as Limited Liability Companies (LLCs) or Professional Limited Liability Companies (PLLCs). This prohibition may be found in California Corporations Code Section 17701.04(e), which reads:

“Nothing in this title shall be construed to permit a domestic or foreign limited liability company to render professional services, as defined in subdivision (a) of Section 13401 and in Section 13401.3, in this state.”

Instead, California requires marriage and family therapists who wish to operate in corporate form to utilize other types of business entities, such as California Professional Marriage and Family Therapy Corporations.

For a more detailed understanding of the prohibition on the use of LLCs for marriage and family therapy practices in California, see “Can an MFT Practice Marriage and Family Therapy Using a California LLC?” and “Can I Use a PLLC to Practice Marriage and Family Therapy in California?” and for more information.

If an LLC or PLLC is currently being used for a marriage and family therapy practice in California, see “10 Steps to Convert LLC to Professional Marriage and Family Therapy Corporation in California” and “Four Reasons Not to Convert LLC to Professional Marriage and Family Therapy Corporation in California” or “12 Steps to Convert a PLLC to a California Professional Marriage and Family Therapy Corporation” and “Four Reasons Not to Convert Foreign LLC or PLLC to a California Professional Marriage and Family Therapy Corporation” for more information about bringing the professional practice into compliance with California law.