Video Summary:

In this transcript from a video from Andy Gale of Gale & Vallance, based in Orange County, explores a common question: Can a medical doctor move an out-of-state practice—such as from Texas—to California? In this segment of “Good to Know,” Andy explains the limitations California imposes on foreign professional corporations, especially in the medical field. If you’re considering how to move your medical practice to California, this video breaks down why some professionals—like lawyers and accountants—can legally transfer their business entities, while medical doctors face stricter regulations.

To learn more about how to legally move your medical practice to California and avoid compliance pitfalls, check out our detailed article on California laws for relocating out-of-state medical corporations.

Disclaimer: This video does not constitute legal advice. We recommend contacting a licensed attorney in California to discuss your specific situation.

Introduction

[00:00:00.030 – 00:00:12.140]
Hi everybody– I’m Andy Gale, the Incorporation Attorney, and this is another “Good to Know.”

The Question: Can Medical Doctors Move Their Practice to California?

[00:00:12.140 – 00:00:21.480]
Can medical doctors move their practice across state lines to California?

Case Example: Texas Doctor Wants to Start a Practice in California

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I’m working with a doctor right now who is a licensed physician in the state of Texas and he called me and said that he would like to start a medical practice here in California.
He doesn’t have a medical license in California, but what he would like to do is take his corporation from Texas, qualify it to do business in the state of California, and then hire other licensed medical doctors in California to perform the client services.
He said that he had done this in a few other states and he would like to do the same thing in California.

California’s Strict Rules on Foreign Professional Practices

[00:00:53.760 – 00:01:11.050]
Unfortunately, in California there are very strict limitations as to people who are professionals wanting to transfer their professional practices when they’re operating out of a business entity, like a professional corporation or a professional limited liability company.
There are restrictions in the state of California as to what professions can exactly do that.

Prohibited Business Entities and Exceptions

[00:01:15.430 – 00:01:38.170]
The first thing to know is that if you have a Professional Limited Liability Company you cannot qualify that to do business in the state of California: our state limited liability act does not permit that.
Secondly, only lawyers and only accountants can move their professional corporations into California to do business and actually go through the qualification process.
It’s not permitted for medical doctors to do that.

Conclusion: What You Should Know Before You Move Your Medical Practice to California

[00:01:38.170 – 00:01:56.659]
I hope you found that “Good to Know.”
Contact Incorporation Attorney for answers to more professional corporation questions like these!