Video Summary:
In this video, Andy Gale from Gale & Vallance, a business law firm based in Orange County, explains the marriage and family therapist corporation name rules in California. He outlines the legal naming requirements that Licensed Marriage and Family Therapists (LMFTs) must follow when forming a professional corporation, based on the regulations set by the California Secretary of State and the Board of Behavioral Sciences. Andy also highlights common mistakes LMFTs make—especially when using online filing services—and how these errors can lead to delays, rejected filings, or even risk to your license.
To learn more about how to properly name your LMFT corporation and avoid compliance issues, check out our detailed article on marriage and family therapist corporation name rules in California.
Please note: This video and transcript do not constitute legal advice. If you have questions about naming or forming a marriage and family therapist corporation in California, we highly recommend consulting with a qualified attorney to discuss your specific situation.
Introduction & Overview
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In this video we will talk about the name style rule you must follow when forming a licensed marriage and family therapy corporation.
Welcome from Andy
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I’m Andy, the incorporation attorney. Thanks for watching.
First Steps in Forming an LMFT Corporation
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So you decided to form your professional licensed marriage and family therapy corporation.
What are the first steps?
One of the first things you must do is prepare the Articles of Incorporation.
And of course, the Articles of Incorporation cannot be drafted until a name is chosen for your corporation.
Types of Corporations and Name Rules
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Now unlike what you may have learned from your Google research, there are several types of corporations and they come with their own formation rules.
One type of corporation is the general stock corporation.
We would use this type of corporation if we wanted to set up an auto mechanic shop, a restaurant, or an online business.
What is a Professional Corporation?
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Another type of corporation is a professional corporation. This type is used by doctors, lawyers, and marriage and family therapists.
Naming Rules: General Stock vs. Professional Corporation
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An important thing for you to know is that there are different rules for naming a general stock corporation versus a professional corporation. So let’s discuss that a bit.
Let’s first talk about general stock corporations.
When we are forming a general stock corporation, the choice of name is up to you as long as the name is not likely to mislead the public or resemble too closely some other corporate name already on file with the state.
The name selected generally may not include words such as Bank, Trust or Trustee, Industrial Loan, Investment and Loan, Thrift, or words Cooperative or Olympic or Olympia.
With general stock corporations, the name selected need not include words that indicate corporate designation such as Incorporated, Inc, Corporation, or Corp.
Professional Corporation Naming Rules
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So let’s turn to professional corporations.
The rules for professional corporations are more complicated than those for general stock corporations.
The name style rules are specific to the particular license that you hold and for each kind of professional corporation.
Regulations That Govern LMFT Corporation Names
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Now keep in mind that these rules also affect all of the formation paperwork that you need to put together while creating your corporation.
The corporate name requirements are regulated by the California Corporations Code, Business and Professions Code, and the California Code of Regulations.
Oversight by the Board of Behavioral Sciences
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When we are specifically considering marriage and family therapy corporations, the name is also regulated by the California Board of Behavioral Sciences.
So if you’re doing this legal work yourself, all of these sources must be checked to make sure that the particular corporate name selected will satisfy the various requirements of the state codes and agency rules.
Common Mistakes and Consequences
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I cannot tell you how many clients we’ve run across that have been forced to redraft all of their corporate formation documents simply because they did not follow the name style rules of their particular profession.
Don’t make that mistake.
Board Enforcement: It’s a License Issue
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For the marriage and family therapist, it is critical to note that the California Board of Behavioral Sciences takes the position that it is unprofessional conduct not to follow the particular name style rules for your profession.
It’s not a defense to an accusation brought against you by the board to say that, “Hey look, I’ve seen other therapists do it.”
Analogy: You Can’t Blame Others
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It’s kind of like if you were stopped by a highway patrol officer for speeding. It does not matter how fast everyone else is driving when you’re the person who’s lit up with the dreaded red light.
Remember, it’s your professional license.
Required Keywords in LMFT Corporation Names
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So what are the specific name style rules for a licensed marriage and family therapy corporation?
It all boils down to a set of defined words that must be included in your corporate name.
So what are those words?
The name of a marriage and family therapy corporation shall contain one or more of the words “marriage,” “family,” or “child” together with one or more of the words “counseling,” “counselor,” “therapy,” or “therapist,” and wording or abbreviations denoting corporate existence.
Can You Use a DBA?
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So what if you want a DBA that is different than the corporate name? Can you do that?
The answer for your profession is yes, you can. But there’s also a rule for that.
A marriage and family therapy corporation that conducts business under a fictitious business name cannot use any name that is false, misleading, or deceptive.
For example, let’s say you’re Wilma Flintstone, a licensed marriage and family therapist.
You could have the corporate name: “Wilma Flintstone LMFT, a licensed marriage and family therapist corporation.”
You could then apply for a DBA with the fictitious name “Wilma’s Holistic Therapy.”
Key Takeaways
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So what are the key takeaways?
Getting lost in the minutiae of name style rules for professional corporations is just one of the 49 different ways that you can get tangled up on the formation of your corporation if you tackle it yourself.
Make sure the corporate name has all of the required keywords.
Make sure that the corporate name has the correct corporate designator.
Final Advice & Closing Thoughts
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Now what’s my advice on forming your professional corporation?
I would strongly urge you to retain the service of a corporate attorney specializing in the formation of corporations to make sure that you get this correct.
I hope this information helps you get your new practice started off on the right foot.
I’m Andy, the incorporation attorney. Thanks for watching.
Conclusion: Understanding the Marriage and Family Therapist Corporation Name Rules in California
Following the marriage and family therapist corporation name rules in California is a crucial step in forming a compliant LMFT professional corporation. Failing to follow these naming requirements can lead to costly delays, rejected filings, or even licensing issues with the Board of Behavioral Sciences. If you’re setting up your practice, it’s always best to consult with a qualified attorney to ensure your business name meets all legal and professional standards. Taking the time to get it right from the start can save you time, money, and potential legal trouble down the road.
