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Can A Speech Pathologist Have An LLC In CA

Due to all the advantages that one can enjoy by forming an LLC, it is the first choice for most professionals.

Although different states do not restrict the type of structure a professional can choose, the case is not the same for California.

Therefore, questions such as can a speech pathologist have an LLC in CA, are so common.

So, can you form an LLC as a speech pathologist in California? No, you can not! The California law puts a prohibition on different professionals when it comes to operating as an LLC. Among all of those professions, the profession of a speech pathologist is one.

Now, what structure should you choose? Read to find out!

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Can A Speech Language Pathology Corporation Be Open As An LLC in CA?

California law does not allow a speech-language pathology corporation to operate as an LLC. In fact, the California Corporation Code does not have any certification of forming an LLC to practice speech pathology.

So, what can you form as a professional speech pathologist in California?

You are allowed to create a professional corporation instead of an LLC.

Now, what are the benefits of forming a professional language pathology corp? First, you will limit your liability against the lawsuits and creditors.

Secondly, you will be capable of minimizing the taxes of self-employment of the shareholders. Furthermore, the professional corporation will allow you to form your corporate business credit.

Apart from these, there are many other advantages that you can enjoy by creating a professional corp as a speech pathologist.

That said, when it comes to forming a professional corporation, you must ensure that you are following each of the steps correctly. Without doing so, you will leave your professional corporation vulnerable to many lawsuits and fines.

These will come from different government agencies.

In fact, the California Speech-Language Board can even issue fines and lawsuits. Therefore, make sure you go through each step and check all the factors properly.

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Who Can Be The Shareholder of My Professional Speech Pathology Corporation?

The thing about the shareholders of a professional speech pathology corporation is that each of them needs to be a licensed pathologist. In fact, the same thing applies to each director, officer, and other members of the professional corporation.

Additionally, you should note that you can only issue the shares of stock for the corporation to the people who have the license to practice speech pathology.

But there is an exception. Licensed audiologists can also hold shares.

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Moreover, they can also be directors, officers, and professional employees.

If that is the case for the shares, you should ensure that the licensed audiologists do not hold more than 49 percent of all corporation shares.

And you should also note that any shares you issue to others who do not have the license to practice speech pathology or audiology will be void.

Furthermore, you can only transfer your pathology corporation’s shares to those with the license to practice this profession. The same thing applies to a shareholder or another corporation.

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What Are the Name Requirements of A Professional Pathology Corporation?

You should be a little careful regarding the name of your professional pathology corporation. It should contain one of these:

  • “speech pathologist”
  • “speech therapy”
  • “speech pathology”
  • “speech correctionist”
  • “speech clinic”
  • “speech therapist”
  • “language pathologist”
  • “language pathology”
  • “communicology”
  • “communicologist”
  • “logopedist”
  • “speech correction”
  • “speech clinician”
  • “logopedics”
  • “aphasiologist”
  • “voice therapy”
  • “voice therapist”
  • “voice pathology”
  • “voice pathologist”
  • “language therapist”
  • “phoniatrist”

You can also include any similar titles. However, you need to make sure that there is an appropriate ending, which can include:

  • “A Professional Corporation”
  • “Corporation”
  • “APC”
  • “Professional Corporation”
  • “Prof. Corp.”
  • “A California Professional Corporation”
  • “Incorporated”
  • “APC.”
  • “PC”
  • “P.C.”
  • ” Inc.”

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Final Words
So, can a speech pathologist have an LLC in CA? No, you can not form or have an LLC as a speech pathologist. Instead, you will need to create a professional corporation. And to avoid double taxation, you can choose the S Corp status for your professional corporation.

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