California licensed marriage and family therapists who practice marriage and family therapy are permitted to form professional corporations here in California. The statutory authority for California Professional Corporations is set forth in the Moscone-Knox Professional Corporation Act (the “Moscone-Knox Act”). See Cal. Corp. Code, §13400 et seq. Like all types of corporate entities, a Marriage and Family Therapy Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form a Marriage and Family Therapy Corporation than to operate a practice as a sole proprietorship. The corporate form protects personal assets from being seized by business creditors and creating a California Professional Marriage and Family Therapy Corporation greatly facilitates adding licensed partners to a practice. The corporate form shields each of the partners from liability that may be alleged against the other(s). If you have questions about the requirements of forming a Professional Marriage and Family Therapy Corporation, or whether a Marriage and Family Therapy Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with licensed marriage and family therapists.

Pursuant to California law, a Professional Marriage and Family Therapy Corporation has certain naming requirements that must be met when the corporation is formed. These name options include:

Licensed Marriage and Family Therapist: 4987.7. ”The name of a marriage and family therapy corporation shall contain one or more of the words “marriage,” “family,” or “child” together with one or more of the words “counseling,” “counselor,” “therapy,” or “therapist,” and wording or abbreviations denoting corporate existence. A marriage and family therapy corporation that conducts business under a fictitious business name shall not use any name that is false, misleading or deceptive, and shall inform the patient, prior to the commencement of treatment, that the business is conducted by a marriage and family therapy corporation.”

Consult with the experienced San Diego corporate attorneys to ensure that the name you want for your Professional Marriage and Family Therapy Corporation is compliant.

When forming a Professional Marriage and Family Therapy Corporation, retain an experienced San Diego corporate attorney to provide advice and assistance. There are special rules under the Moscone-Knox Act with respect to who may be shareholders — owners — in a Professional Marriage and Family Therapy Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Marriage and Family Therapy Corporation is unique in this way.

The permitted shareholders, who may also serve as officers and directors, but who may not be greater in number than the licensed marriage and family therapists and must collectively hold 49% or less of the shares are as follows:

Marriage and family therapist corporations:

Licensed physicians and surgeons;
Licensed psychologists;
Licensed clinical social workers;
Registered nurses;
Licensed chiropractors;
Licensed acupuncturists;
Naturopathic doctors;
Licensed professional clinical counselors; and
Licensed midwives.

The corporation may have employees — such as a receptionist or a book-keeper — who are not licensed as long as those employees are not providing any sort of professional marriage and family therapy services.

Contact San Diego Corporate Law Today

For more information, contact attorney Michael J. Leonard, Esq., or Christina Gandy-Delgadillo, Esq., of San Diego Corporate Law. Michael and Christina can be reached at (858) 483-9200 or via email. These experienced corporate attorneys can ensure your Professional Marriage and Family Therapy Corporation is set up correctly and can assist with the annual maintenance of your California Professional Marriage and Family Therapy Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.