Helping people through clinical social work is rewarding, and for many, the next step is opening your own practice. But in California, you can’t just form an LLC or “any business” if you’re going to offer clinical social work under your own practice. You’ll need to create a compliant Licensed Clinical Social Worker (LCSW) Professional Corporation.

How to start an LCSW private practice in California? Read on and find out the latest legal requirements, naming rules, ownership restrictions, and compliance tips to launch your private practice the right way.

What Is a Licensed Clinical Social Worker Corporation?

A licensed clinical social worker (LCSW) corporation is a type of California professional corporation established for the purpose of providing clinical social work services.

As a professional corporation, it must be registered with the California Secretary of State and is governed by the California Corporations Code and the Business & Professions Code provisions that apply to LCSWs.

Who Regulates LCSW Professional Corporations in California?

Under California Corporations Code §13401(b), licensed clinical social worker corporations are regulated by the California Board of Behavioral Sciences (BBS).

Failure to comply with BBS rules or the Corporations Code can lead to sanctions, fines, or administrative action. For more details on licensing and board guidance, see the official BBS website.

Licensed Clinical Social Worker Requirements in California (2025)

At formation and during operation, an LCSW professional corporation must comply with:

• California Corporations Code (Moscone-Knox Professional Corporation Act)
• Business & Professions Code (LCSW Practice Act, §4998 and onward)
• California Code of Regulations (Title 16, Division 18, §1850 et seq.)

It is important to seek the counsel of an expert corporate lawyer regarding the interpretation and application of these laws and codes so that the company can adhere to them accordingly.

Read more on the BBS Statutes and Regulations for California licensed clinical social workers here.

Naming Rules for LCSW Corporations You Must Follow

You also have to follow specific naming rules for your LCSW private practice. First, according to BPC §4998.2, your corporation’s must include “Licensed Clinical Social Worker.”

CCR Title 16, §1850.6 also states that a California LCSW professional corporation’s name must include a corporate designation, such as:

• “Professional Corporation”
• “Prof. Corp.”
• “Corporation”
• “Corp.”
• “Incorporated”
• “Inc.”

Here’s an example of a compliant business name:

“Integrative Counseling, A Licensed Clinical Social Worker Corporation”

As you can see, it includes both the “licensed clinical social worker” and “corporation” naming requirements for an LCSW private practice.

Need help naming your LCSW private practice? Talk with a Professional
Corporation specialist!

Can LCSW Corporations Use a Fictitious Business Name (DBA) in California?

Yes — LCSW and other professional corporations may use a fictitious business name or a “Doing-Business-As.”

But it must not be false, misleading, or deceptive. Under BPC §4992.10, LCSW corporations using a DBA are required to notify patients of the owner(s) and license designation before treatment.

Optionally, you can get written confirmation from the BBS Enforcement Division if the name deviates from standard naming conventions. You can find the BBS contact information here.

Exact State Laws on Naming LCSW Corporations and Using a Fictitious Name

Here are the exact state laws in creating a corporation name for your corporation:

• BPC § 4998.2. Notwithstanding Section 4996, the name of a licensed clinical social worker corporation and any name or names under which it may be rendering professional services shall contain the words “licensed clinical social worker” and wording or abbreviations denoting corporate existence. A licensed clinical social worker corporation that conducts business under a fictitious business name shall not use any name that is false, misleading, or deceptive, and shall inform the patient, prior to the commencement of treatment, that the business is conducted by a licensed clinical social worker corporation.
• 16 CCR § 1850.6 – Name of Corporation. The wording or abbreviation denoting corporate existence shall be limited to one of the following: “Professional Corporation,” “Prof. Corp.,” “Corporation,” “Corp.,” “Incorporated,” or “Inc.”
• 4992.10. A licensed clinical social worker who owns a business using a fictitious business name shall not use a name that is false, misleading, or deceptive, and shall inform the patient, prior to the commencement of treatment, of the name and license designation of the owner or owners of the practice.

LCSW Corporation Bylaws: Why They Matter and What to Include

Bylaws are the internal rules that govern your LCSW professional corporation. So you must set up your corporate bylaws and they must be adopted at the formation of your corporation.

Well-drafted bylaws help prevent governance disputes and ensure statutory compliance. At minimum, include rules covering:

• Roles and eligibility of shareholders, directors, and officers, and how vacancies are filled.
• Meeting procedures, voting rules, and quorum requirements.
• Share transfer restrictions (ownership limitations) and procedures, in accordance with Corporations Code §13407.
• Compensation policy, conflict of interest rules, and a plan for voluntary or involuntary shareholder changes (disability, retirement, discipline).

If you plan to have more than one shareholder or to admit other licensed professionals, draft bylaws that address voting rights and share transfer restrictions consistent with Corporations Code limits.

Who Can Own and Be a Shareholder of an LCSW Private Practice in California?

For California professional corporations, only persons licensed in the relevant profession can be an owner or shareholder of the business. Specific allowances and limitations appear in the Corporations Code sections that list permissible shareholders for each professional corporation type.

Under Corporations Code §13401.5(h), here’s the list of licensed professionals who may qualify as a shareholder of a California LCSW professional corporation:

1. Licensed physicians and surgeons
2. Licensed psychologists
3. Licensed marriage and family therapists
4. Registered nurses
5. Licensed chiropractors
6. Licensed acupuncturists
7. Naturopathic doctors
8. Licensed professional clinical counselors

California law is very specific when it comes to who can own or have shares in a professional corporation. So it’s always a smart move to confirm with a business law expert or BBS before adding a shareholder.

Who Can Be Officers & Directors in an LCSW Professional Corporation?

California’s Corporations Code sets specific rules for single-shareholder and two-shareholder professional corporations, as stated in Corporations Code §13403:

• One shareholder: That person must be the sole director and must also serve as president and treasurer. Other officers need not be licensed, but the single shareholder must fulfill those director/officer roles.
• Two shareholders: Both shareholders must be directors, and between them must fill the offices of president, vice president, secretary, and treasurer.

Non-licensed individuals may hold non-director officer roles in specific cases.

Why You Should Work With a Corporate Attorney (and What They Do)

Forming an LCSW professional corporation is more than just administrative paperwork, as it shapes your liability, governance, tax choices, and regulatory compliance. Working with an expert means having an corporate attorney who can:

• Prepare and file articles of incorporation correctly with the Secretary of State.
• Draft bespoke bylaws that reflect Moscone-Knox ownership restrictions and BBS requirements.
• Advise on employment classification (IC vs employee), independent contractor agreements, and payroll compliance.
• Help with DBAs, website disclosures, and BBS interactions to reduce enforcement risk.

While DIY corporate formation can be faster or cheaper up front, the risk is higher in missing profession-specific rules that can have costly consequences.

Step-by-Step: How to Start Your Private Practice and California LCSW Professional Corporation? 

Here’s an overview of the common steps in starting an LCSW private practice in California:

1. Reserve a name and check its availability through the Secretary of State
2. File Articles of Incorporation with the Secretary of State
3. Adopt corporate bylaws and issue shares
4. File Statement of Information within 90 days of incorporation (and annually thereafter) with the Secretary of State
5. Obtain EIN from the IRS (a must to set up business bank account) and elect tax status (e.g. S-Corp or default)
6. Register DBA (if applicable) and comply with BBS disclosure rules
7. Obtain required permits and city/county business license
8. Ongoing compliance: renewals, minutes, recordkeeping, license renewals, tax filings

FAQs: How to Start an LCSW Private Practice in California 

Do LCSW Corporations need a Certificate of Registration in California? 

No. As of 2025, the BBS does not require a separate “Certificate of Registration” for an LCSW professional corporation. As long as your corporation is rendering professional services through persons duly licensed by the California Board of Behavioral Services, there’s no need to obtain a separate certificate of registration. 

Can LCSWs in California form an LLC instead of a corporation? 

No. California law requires LCSWs, like other licensed professionals, to practice through a professional corporation, not an LLC. 

Do I need malpractice insurance for my LCSW private practice? 

Technically, California laws don’t require malpractice insurance for professional corporations. But professional liability coverage is strongly recommended for added layers of protection for your private practice. 

Do I need to list my corporation name on my website? 

Yes. We recommend prominently displaying your full legal name, including “Licensed Clinical Social Worker Corporation,” on your website for transparency and legal compliance. 

Do I need bylaws for my LCSW professional corporation?  

Yes. Bylaws are essential at formation. They establish governance, share transfer rules, officer roles, and help ensure compliance with Moscone-Knox ownership restrictions. 

Can I use a DBA (fictitious business name) for my LCSW private practice?  

Yes, as long as the DBA is not false, misleading, or deceptive and patients are informed of the legal owner and license designation before treatment. Consider getting written confirmation from the BBS Enforcement Division for unusual names.