While other states in the US allow medical businesses to operate as an LLC, California only allows medical professionals to form a corporation. This type of business entity is officially registered by the California Secretary of State. This is the normal law for any medical business in California and some agencies that regulate all medical professions to legally render their professional medical services. Learn more as we guide you through the basic steps and requirements in forming your own professional medical corporation in California.  

What is the First Step in Forming Your Own Professional Medical Corporation? 

Normally, a corporation cannot be formed without drafting the articles of incorporation. However, the articles of incorporation cannot be drafted without forming a business name.  

The first step is to always come up with a name for the corporation. While brainstorming for a business name sounds easy, there are name requirements regulated by the state for every medical professional corporation. Any medical business in California is required to use the surname of one or more of the shareholders of the corporation for their business name, followed by any abbreviation such as “corp” or “inc” to denote corporate existence. A fictitious business name is also allowed if one opts to use a different business name other than the first rule. You will have to file for a fictitious name permit and submit for approval to the Medical Board of California with a minimal fee.  

Can Anyone Form Their Own Professional Medical Corporation in California? 

We always try to stress out to our clients the importance of being well informed about the laws that govern the formation of a professional medical corporation. By being aware of the rules and regulations, you are able to abide and proceed through your business transactions smoothly. It is important to note that not everyone can start their own medical business unless they are issued with a professional medical license. These include doctors, psychologists, nurses, optometrists, therapists, clinical social workers, assistant physicians, chiropractors, pharmacists, and other medical fields with a professional medical license.  

A professional medical corporation can be formed by any or more of the licensed medical specialists listed above. The Medical Board of California regulates and limits the sum of all their shares for the company to a maximum of 49%. 

Can Existing Medical Doctors Move Their Business in California? 

Medical businesses outside the state of California are usually formed under an LLC (Limited Liability Company). Because California only allows the formation of a professional corporation for medical doctors to start their business, existing medical doctors outside the state cannot use their business in California. There are bylaws for this type of regulation for medical corporations in California.  

One example we have is our client from Texas who wished to extend their medical business in California by hiring medical doctors under his company. However, since his business couldn’t qualify due to the business entity restrictions, he was advised by our corporate attorneys to start another business in the form of a professional medical corporation. So, our client built another business here in California by forming a professional medical corporation. The doctors he wished to hire to work with him have become a part of the shareholders of the corporation.  

Common Questions to Help Guide You Start Your Medical Business  

Client Question: Should I notify the California Medical Board if my business address changes within California? I am moving my business location to Irvine, California and would like to know whether I need to inform the state and other government agencies about this change. 

Answer: Yes, you need to submit any change of address/email on your business to the Medical Board of California. There is a strict rule that this must be submitted within 30 days after the change of address/email. The submission template should be in writing and must contain the following: business name, license or registration, the previous as well as the new address, signature of business owner or any authorized representative and date. These can be submitted online, mail or by fax at (916) 263-2944. For online submissions, you may refer to this link:  


The mailing address where you may submit the address change/notice is listed below: 

Medical Board of California
Licensing Program
2005 Evergreen Street, Suite 1200
Sacramento, CA 95815 

Client Question: Should I apply for a certificate of registration for my professional medical corporation? 

Answer: No. Professional medical corporations are not required to submit or apply for a certificate of registration for their business. This only applies to the medical businesses in California.  

Build Your Own Professional Medical Corporation in California Today! 

More and more medical doctors are pursuing their businesses in California through a professional corporation. We have catered to several clients and have helped and guide them every step of the way in the formation of the business. If you are planning to start your professional medical corporation, this is the perfect time for you. Our expert corporate attorneys have already prepared all the important tools to help you build your own medical business here in California as smooth as possible. The notes in this article are just the first few parts and there is more work in starting your own business. With our help, you are sure to fast track that process without having to experience the hassle you’re likely to go through. Contact us now at + (714) 634-4838 and let’s talk business.