Are you a mental health counselor and have considered starting your own clinical mental health counseling private practice in California? Are you eager to venture in the clinical counseling business but don’t have the means and knowledge to start off? As a team that specializes in forming clinical mental health corporations, we offer the best tips for start-ups in the market.  

1. What is a Professional Clinical Counselor? 

Professional clinical counseling is the practice of counseling mental health in general. This includes addressing emotional issues that affect personal growth and providing counsel and therapeutic approaches to improve mental health.  

2. What is a Professional Clinical Mental Health Counseling Private Practice in California? 

A clinical mental health counseling private practice in California is a corporate business entity registered under the California Secretary of State and is involved in providing clinical mental health services focused primarily on counseling and improving mental health.  

Which Government Agency Regulates this Professional Corporation?  

It is mandatory for most professional corporations to comply with their respective government agencies under their profession. Professional clinical counselors must abide by the rules and regulations of the Board of Behavioral Sciences. 

What California State Laws are Used to Administer the Format of Clinical Counselor Corporation?  

The following codes regulate the formation of clinical counseling corporations: 

1. California Corporations Code – §13401(b) 
2. Business and Professions Code – the section that talks about professional clinical counselor corporations can be found in the California Business and Professions Code starting with Section 4999.123 

3. What are the Rules in Choosing a Name for the Corporation? 

The chosen name for the corporation must be in compliance with the California Business and Professions Code 4999.125. The corporation name must contain the words “licensed professional clinical counselor” or “professional clinical counselor” and/or other abbreviators that indicate its corporate existence. 

Clinical mental health private practices are allowed to use “Doing Business As” names. However, any professional clinical counselor corporation that uses a fictitious business name is not allowed to use any sort of name that is false, misleading, deceptive. They should also have a clear protocol to inform every patient (new and old), before treatment, that the clinic is performed by a professional counselor corporation.  

What are the Qualifications to be a Shareholder? 

It is important to remember that although with California General Stock Corporations, unlicensed persons may be shareholders, the case for California Clinical Counselor Corporations does not hold the same. It is required that licensed persons may only be the shareholders of the corporation. Moreover, Professional Clinical Counselors may opt to be shareholders of more than one Professional Corporation.  

Should Officers/Directors be Licensed Professional Clinical Counselors? 

Any person who takes part in the ownership of the professional clinical counselor corporation must be a licensed clinical counselor practitioner. Thus, all top corporate positions such as director, shareholder, and officer, excluding an assistant secretary, assistant treasurer, and other assistant positions, must be licensed clinical counselors. These offices may depend on the number of shareholders in the Corporation.  

However, there are exceptions to cases, such as having only one shareholder. That singular shareholder of the corporation will automatically act as the director as well as the president of the corporation. As for the other officer positions, they may be filled by unlicensed personnel.  

Do Professional Clinical Counselor Corporations have to Register with the California Board of Behavioral Sciences? 

No. It is not required for Professional Clinical Counselor Corporations to register under the California Board of Behavioral Sciences. 

CLIENT QUESTION: 

I’m a licensed professional clinical counselor based in San Jose, California. For the past few months, I’ve been busy planning and studying on starting up my own clinical private practice on mental health. I have done this together with four of my friends who used to be my colleagues in the company where we previously worked. I am wondering whether it is more practical to process the formation of the corporation by ourselves, or do we need the legal advice and notices of a corporate lawyer? Our concern for this matter mostly has to deal with budget and cutting costs efficiently.   

OUR ANSWER  

It is true that when starting a business, one has to manage all costs and make sure that all capital expenses are shelled out at their maximum efficiency. No person would want to find out they’ve been spending too much on this area when in fact, they could’ve saved tons of money had they not done this or that. The same question goes with hiring a corporate lawyer.  

Many people have mistaken starting up a business as a walk in the park. The theory may be easy to understand, but without proper legal counsel, advice, and notices, there is a greater risk for shortcomings that may arise both in the short and long run.  

One of the key factors for a good start of a business is hiring a corporate attorney that specializes in the formation of professional clinical counselor corporations in California. This will give assurance that all legal processes and questions will be met smoothly and correctly. This is not only for the benefit of your business, but to ensure that you’ve complied with all laws, codes, and requirements. It is always important to remember that the job of a professional, someone who specializes in the field of law, should be taken of greater importance rather than doing things on your own. The same idea goes with professional clinical counseling. As much as people are easily accessible to the answers to their symptoms on the Internet, it is still far better to talk to a professional than just Google something on the Internet.  

Incorporation Attorney Specializes in Forming Clinical Mental Health Counseling Private Practices in California  

Are you and your colleagues planning to start your own clinical mental health counseling private practice in California? Our team of expert corporate lawyers can help you! Incorporation Attorney has over a decade of experience in forming clinical mental health counseling corporations. Give us a call today at +1 (714) 634-4838!