Video Summary:

In this video transcript, Andy Gale from Gale & Vallance, a business law firm based in Orange County, explains the mistakes to avoid when naming a LCSW corporation in California. Andy discusses the common missteps made by new professionals—especially those relying on internet research or DIY services—when trying to form a Licensed Clinical Social Worker (LCSW) corporation.

From naming conventions to IRS filings, he outlines how small errors can lead to costly delays, rejected applications, and even professional board violations. Using real examples, Andy highlights why it’s critical to follow proper legal protocols and work with experienced professionals during the incorporation process.

To learn more about naming and forming a compliant LCSW corporation in California, see the full detailed article about mistakes to avoid when naming a LCSW corporation in California.

Please note: This video and transcript do not constitute legal advice. If you’re asking, “how do I properly name my LCSW corporation in California?” or have other legal questions, we strongly recommend speaking with a qualified attorney for guidance specific to your situation.

Introduction: Common Mistakes by New Business Owners

[00:00:21 – 00:01:10]

I think one of the first mistakes that a lot of new business people make is that they try to do some tasks which they should leave to professionals. One task is obviously legal work, and another task is accounting work.

Because it’s just very complex, it’s very hard to do yourself. Where people make a giant misstep is that they go to Google, try to do their Google research—and unfortunately, three-quarters of the articles on Google are either incorrect or incomplete.

Consequently, you end up doing it wrong. If we’re just opening up an ice cream store, that might not be so much of a problem. But when we are licensed professionals by the state, the consequence of doing things wrong is much more steep.

Correct Steps to Form an LCSW Corporation

[00:01:51 – 00:02:54]

The order of sequence would be:

  • Figure out your correct legal name—because there are specific name style rules for every profession.

  • File your articles and make sure they get filed and file-stamped, meaning they actually get processed by the Secretary of State without getting rejected.

  • Then move on to the EIN number.

Because if you make mistakes with any of your IRS paperwork, there is no one you can call to fix it. There is no such thing as, “I can get this thing fixed in a matter of days” or “in a matter of weeks.” Every time you communicate with the IRS, it’s going to be at least a 90- to 120-day round trip on letters.

So mistakes with the IRS are massively costly—in terms of time and in terms of getting your corporation formed correctly.

Licensed Clinical Social Worker Corporation—and any name or names under which it may render professional services—shall contain “Licensed Clinical Social Workers.” So “LCSW” does not work.

Challenges with County-Level Bureaucracy

[00:03:45 – 00:04:17]

Go back and deal with the County of Los Angeles. And most times, when you deal with county offices—again—they’re not the most efficient entities to be dealing with.

Who knows whether or not she’ll have to pay additional fees or whether she can actually get someone to correct this one or more times as she figures out the fact that she’s done other things wrong.

What she doesn’t know is that within the forms there are specific requirements, which I’m just certain she’s not going to figure out—because no one else does as well.

IRS Mistakes Are Not Easily Fixed

[00:04:45 – 00:04:53]

There is no one you can call to fix it.
There is no such thing as, “I can get this thing fixed in a matter of days or in a matter of weeks.”

Legal Consequences of Mistakes

[00:05:01 – 00:06:04]

The thing that I always want my clients to know is this:

You need to understand that your board and state law deems it to be unprofessional conduct—and a violation of the chapter— if you:

  • Violate

  • Attempt to violate directly or indirectly

  • Assist or abet a violation

  • Or conspire to violate any provision or term of this article and the Professional Corporations Act.

So if you’re not doing it correctly, they’re not saying, “Well, you should have known better. It was just a mistake.”
You either follow the rules, or you don’t.

If you don’t, then you’re in trouble with your board—which is not a good thing.

Mistakes Mean Delays — Months, Not Days

[00:06:04 – 00:06:06]

When you jumble things up, frequently you have to go back and redo. And if you have to redo with certain government agencies, you can’t redo it in a day. It’s a matter of months and months and months of redoing.

When you wanted to get started in business within a matter of weeks—
Now you’ve managed to screw things up, so you’re not getting started for a matter of months.

That’s just a big downside that people run into, and they don’t know it’s a problem—because of lack of experience.