Start Your U.S. Business Confidently

Show Me How
50% Complete

Start Your U.S. Business Confidently

100% Privacy. We Will Never Spam You.

How to Start a Psychology Private Practice in California

If you want to know how to start a psychology private practice in California, I can give you the information you are seeking. California has special laws and stipulations about setting up professional business entities.

Table of Content


No.Content
1.How to Start a Psychology Private Practice in California by Incorporation
2.Why a Psychologist Cannot Establish an LLC or PLLC
3.Highlight Your Professional Standing
4.Who to Contact after You Learn How to Start a Psychology Practice in California
5.What Steps You Need to Take After You Learn How to Start a Psychology Practice in California
6.Forming Your Practice
7.Choose a Business Name and Register the Name
8.Choose the Location
9.Retain a Registered Agent
10.Hold an Initial Directors’ Meeting
11.What Is Contained in the Bylaws?
12.Submit the Incorporation Paperwork
13.Set Your Practice Up to Take Payments and Keep Records of Receipts
14.Open a Business Bank Account After You Obtain an EIN
15.What Happens Next?

 

How to Start a Psychology Private Practice in California by Incorporation

Typically, when you find out how to start a psychology private practice in California, you need to know more about the steps for incorporation. People in professional occupations cannot set up a limited liability company (LLC) or professional limited liability company (PLLC) if they work as a psychologist in California. 

 

Why a Psychologist Cannot Establish an LLC or PLLC

According to California law, professionals, such as psychologists, are held to a higher standard, as they must obtain a license to practice their occupation. Therefore, the state legislature does not accept the idea that professionals limit their liability by setting up an LLC or PLLC. 

Known as the Moscone-Knox Professional Act, the California Corporations Code, State-Statute 13401(a). defines a professional as anyone who renders a service as the result of being licensed, registered, or certified.

Therefore, if you wish to set up a psychology practice in California, you need to refer to this law when establishing an entity.

 

Highlight Your Professional Standing

Most California business professionals choose to establish themselves as subchapter S corporations, as they enjoy pass-through taxation and protection from personal liability. At the same time, they enjoy the status that comes with professional incorporation.

 

Who to Contact after You Learn How to Start a Psychology Practice in California

If you would like to set up a corporation for your practice after you learn how to start a psychology private practice in California, contact my office. Book a call to speak to us here: https://mollaei.com today.

 

What Steps You Need to Take After You Learn How to Start a Psychology Practice in California

When you learn how to start a psychology practice in California, you will need to take the following steps of professional incorporation. To initiate these steps though, you will need to create a business plan first.

I can help you create a plan that will define your mission and highlight how you plan to operate your practice. 

Your business plan will serve as a map that you can refer to as you continue to grow. Again, send me an email to find out more about creating your unique business plan. Email sam@mollaeilaw.com today.

 

Forming Your Practice

 

1. Choose a Business Name and Register the Name

You will need to begin incorporation of your practice by registering your business name. If you wish to use a doing business as (DBA) name or fictitious name, you will need to make sure the name you choose is unique and that is does not mislead, deceive, or confuse people. 

The idea is to create a name that is professional and clearly states what services you offer. Therefore, the first priority of business is to select the name.

By emphasizing a specialty, you can narrow down naming choices.

If you do not choose a DBA name, you must make sure that your practice’s name contains something about incorporation and words, such as “psychology,” “psychologist,” “psychology consultant,” “psychometrics,” or a reasonable legal facsimile.

You cannot set up your practice as a corporation without giving it a name. Once we have determined you have chosen a unique or accepted name for your business, we can proceed to the next step of incorporation.

What you name your practice must conform to the standards set by the California Board of Psychology. Failure to adhere to any of the rules set by the government agency will result in penalties or the enforcement of legal sanctions against your practice.

 

2. Choose the Location

Before you fill out the forms to register your business, you will need to find a location for your practice. This part of your business set-up is crucial if you want to make sure your business is found and is accessible to patients.

 

3. Retain a Registered Agent

You will need to retain the services of a registered agent to start your corporation or practice. The registered agent must be available during business hours to accept legal and tax documentation with respect to your start-up.

You will also need registered agent services for submitting or receiving the paperwork to remain compliant.

Instead of calling us, tell readers to email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start

 

4. Hold an Initial Directors’ Meeting

Next, you will need to fill out the formation paperwork for your corporation at an initial directors’ meeting. Once all the paperwork is reviewed and signed, you can submit it to the proper legal authorities for review and approval.

Some of the documents you will need include the bylaws, which state how the corporation will be run, as well as a formation agreement.

 

What Is Contained in the Bylaws?

The bylaws for a corporation include the corporation’s name, address, and main headquarters. They will also state the stock classes and the types of issued shares.

The corporate officers and directors will be named, and the procedure for holding shareholder meetings will be included as well. 

Shareholders must be licensed psychologists. If you are the only shareholder, you can name yourself director as well. Each shareholder, except the assistant treasurer or assistant secretary, must be a licensed psychologist.

If you are the only shareholder and director, you can also be classified as the corporation’s director, treasurer, and president. If you have two licensed professionals serving as shareholders, they can fill the offices of secretary and treasurer, vice-president, and/or president among themselves.

The bylaws also include a section about making amendments to the bylaws and articles of incorporation. In addition, the document includes directions that state the process for maintaining the corporate records and minutes of meetings.

 

5. Submit the Incorporation Paperwork

Once your paperwork is completed, it needs to be submitted and filed legally with the Secretary of State. You will also need to get any required permits.

I will help you with submitting the required forms and obtaining the permits. After your business is set up, I will also assist you with staying compliant.

You can begin the set-up process today. Email sam@mollaeilaw.com to get started.

 

6. Set Your Practice Up to Take Payments and Keep Records of Receipts

Setting up your accounting system is necessary as is making sure you are fully set up to take payments. Your practice’s key metrics should be built into the administrative software for your business so you can assess certain items, such as intake calls.

Average charges per session, and referrals. It is not enough to just make a living; you will also need to examine your practice’s operations so you can expand. 

 

7. Open a Business Bank Account After You Obtain an EIN

I will help you obtain an EIN, or Employer Identification Number, as well, so you can open up a business bank account and have a tax number when filing your taxes. With my help, you can start your business but primarily focus on performing treatment and therapy services.

 

What To Do Next

When you know how to start a psychology practice in California, you are already halfway there when it comes to establishing your practice. Again, you will need legal assistance to make sure you meet your set-up goals and plans.

Email sam@mollaeilaw.com today to get started. You can realize your goals of starting a psychology practice. You just need to make sure you the proper support legally and financially

Instead of calling us, tell readers to email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start

Start Your U.S. Business Confidently

Join 3,000+ Entrepreneurs Who Have Successfully Started Their U.S. Business

Privacy Policy: We have no tolerance for spam.

50% Complete

Join 3,500+ Entrepreneurs Who Have Successfully Started Their U.S. Business

Privacy Policy: We have no tolerance for spam.