3 Steps to Starting Your Clinical Social Worker Corporation

Why Every LCSW in California Should Form a Professional Corporation

If you’re a Licensed Clinical Social Worker (LCSW) in California, you are required by law to form a Professional Corporation (PC) — not an LLC or general corporation — to legally operate your practice.

Under the Moscone-Knox Professional Corporation Act (California Corporations Code §§13400–13410), LLCs and general corporations are not authorized for professions that require a state license, such as clinical social work.

Filing your corporation incorrectly can lead to rejection by the California Secretary of State, fines, and even disciplinary actions from the California Board of Behavioral Sciences (BBS).

At All-in-Juan Business Consultancy Services, we’ve helped thousands of licensed professionals form their Professional Corporations properly — ensuring compliance with state laws while saving time and stress.

📩 Email: [email protected]

What Is a Licensed Clinical Social Worker Professional Corporation?

A Licensed Clinical Social Worker Professional Corporation (LCSW-PC) is a California-based entity formed to provide clinical social work services.

To be recognized, your corporation must:

• Register with the California Secretary of State

• Obtain a Certificate of Registration from the California Board of Behavioral Sciences (BBS)

This entity allows you to practice legally, protect your personal assets, enjoy tax benefits, and build business credibility while complying with California’s professional licensing laws.

Why Elect S-Corporation Tax Status

By default, a Professional Corporation is taxed as a C-Corporation, which often results in double taxation.

Electing S-Corporation status (IRS Form 2553) helps you:
✅ Avoid double taxation
✅ Lower self-employment tax
✅ Pass income and deductions directly to your personal return
✅ Retain more of your earnings

3 Steps to Form Your LCSW Professional Corporation in California

Step 1: File Your Articles of Incorporation

File the Articles of Incorporation for a Professional Corporation with the California Secretary of State, clearly identifying your corporation as providing clinical social work services under the Moscone-Knox Act.

Step 2: Complete State and Tax Requirements

After incorporation, you must:

• Apply for your EIN from the IRS

• Appoint Directors

• Draft your corporate bylaws

• File your Statement of Information with the Secretary of State

• File Form 2553 to elect S-Corporation tax status

• Pay annual taxes to the California Franchise Tax Board (FTB)

• Register with the Employment Development Department (EDD) if you pay salaries

• Apply for local business licenses or permits

Step 3: Let All-in-Juan Handle It for You

At All-in-Juan Business Consultancy Services, we take care of every step — from incorporation to compliance — so your LCSW Corporation is properly structured and ready to operate.

📩 Email: [email protected]

Benefits of Forming a Licensed Clinical Social Worker Professional Corporation

Forming your LCSW Professional Corporation gives you major advantages:
✅ Personal Liability Protection – Your personal assets stay protected from business lawsuits or debts.
✅ Tax Efficiency – Save more through S-Corp tax benefits.
✅ Compliance – Meet all California state and BBS requirements.
✅ Professional Credibility – Present yourself as a compliant, credible professional entity.
✅ Growth Potential – Build business credit and expand your professional practice.

Who Regulates Licensed Clinical Social Worker Corporations?

All Professional Corporations in California are governed by the Moscone-Knox Professional Corporation Act and their respective licensing boards.

For LCSWs, the regulatory body is the California Board of Behavioral Sciences (BBS), which issues the Certificate of Registration necessary to legally operate your professional corporation.

Who Can Be a Shareholder of an LCSW Corporation?

In California, at least 51% of the corporation’s shares must be owned by Licensed Clinical Social Workers.

The remaining 49% may be owned by other licensed professionals, including:

• Licensed physicians and surgeons

• Licensed psychologists

• Licensed marriage and family therapists

• Registered nurses

• Licensed chiropractors

• Licensed acupuncturists

• Naturopathic doctors

Shares issued to unqualified or unlicensed individuals are void under California law.

If a shareholder loses eligibility or becomes disqualified from practicing, they must transfer their shares within 90 days to another qualified shareholder or the corporation itself.

Naming Requirements for an LCSW Professional Corporation

Your LCSW Corporation’s name must include the words:

“Licensed Clinical Social Worker”

It must also end with a corporate suffix such as:

• “Professional Corporation”

• “A Professional Corporation”

• “Prof. Corp.”

• “P.C.”

• “Inc.”

• “Corporation”

• “A California Professional Corporation”

Examples:
✅ MindCare Social Work, A Professional Corporation
✅ Dr. Maria Santos, LCSW, Inc.

❌ “LLC” is not allowed for clinical social work practices in California.

📝 Note:
LCSW Corporations are required to inform clients at the start of treatment that services are provided by a professional corporation. This must be stated in your Disclosure Statement or Informed Consent Form.

Using a DBA (Fictitious Business Name)

You may operate under a fictitious business name (DBA) if:

• You file a Fictitious Business Name Statement within 40 days of starting operations

• You file in each county where you conduct business

• The name is not misleading or deceptive

Example:
🌿 Hope & Healing Therapy Group (filed under MindCare Social Work, A Professional Corporation)

Can a Licensed Clinical Social Worker Operate as an LLC in California?

No.
Under the Moscone-Knox Professional Corporation Act, Licensed Clinical Social Workers (LCSWs) cannot form or operate as an LLC.

To practice legally, LCSWs must form a Professional Corporation registered with the California Secretary of Stateand Board of Behavioral Sciences (BBS).

Start Your LCSW Professional Corporation the Right Way

At All-in-Juan Business Consultancy Services, we help Licensed Clinical Social Workers across California form and register their Professional Corporations the right way — compliant, complete, and ready to practice.

Whether you’re just starting your private practice or expanding your professional career, we’ll handle every step for you.

📞 Contact Number: +1 424 407-3686
📩 Email: [email protected]
🌐 Website: www.all-in-juanbusinessconsultancyservices.com

All-in-Juan Business Consultancy Services — Helping California’s Licensed Clinical Social Workers Build Legally Compliant, Tax-Efficient Professional Corporations.