Workshop for Psychotherapists:
How to Incorporate Your Psychotherapy Practice: A Step-by-Step Guide
Have you been thinking about running your psychotherapy practice as a California professional corporation (with S corp status) – but don’t know how to get started or to comply with legal and other requirements? If so, you may find my upcoming workshop helpful.
HOW TO REGISTER: Please email me at matsMFT@gmail.com. I’ll then send you payment information and a workshop participation agreement to sign beforehand.
ABOUT THE WORKSHOP:
In the Workshop, I will first provide general legal information relevant to running a single-owner California Professional Corporation (“PC”):
- how running your psychotherapy practice as a PC differs from running it as a sole proprietorship
- the legal structure of a PC
I will then guide you through the necessary steps to form and operate a PC (with S corp status), including:
- choose a name for your PC
- prepare and file articles of incorporation with the California Secretary of State
- prepare and adopt bylaws
- prepare and adopt initial organizational board resolutions
- issue stock
- obtain an Employer Identification Number (EIN)
- prepare and file an initial and annual Statements of Information with the California Secretary of State
- prepare and adopt annual board and shareholder’s resolutions
- pay estimated California tax to the Franchise Tax Board
- elect S corp status with the IRS
- set up a payroll service for payment of employee compensation
- enter into updated leases and other contracts in the name of your PC
- obtain professional liability (malpractice) and general liability insurance in the name of your PC
- set up and fund a business bank account for your PC
- accept payments from clients in the name of your PC
- inform clients that you operate your psychotherapy practice as a PC
- notify health insurance companies of your change in legal form, and reflect the change on CMS-1500 claim forms and superbills
I will give you a printed outline of the information presented in the Workshop, in an easy-to-use step-by-step format. You’ll also get templates for legal documents (bylaws, board and shareholder’s resolutions, stock certificates, and more) – along with clear instructions for how to use them to prepare your own legal documents. I’ll also show you how to fill out government forms (articles of incorporation, statements of information, S corp status election form, and more).
In the Workshop, I will briefly review pros and cons of running a psychotherapy practice as a PC, including potential tax savings. Note, however, that while I’m a California licensed attorney, I will not provide any legal, accounting, tax or other professional advice – including whether forming a PC is appropriate in your unique circumstances. It’s up to you to obtain the services of professionals with the relevant expertise to advice you whether to form a PC. The primary purpose of the Workshop is to provide helpful information and documents to someone who has already decided to form a PC.
I’ve been an MFT in private practice since 2012 and a California licensed attorney since 1995. I received my MA in counseling psychology from John F. Kennedy University, and my JD from Stanford Law School. In recent years, I’ve significantly scaled back my law practice as I focus on my psychotherapy practice.
Mats Hellsten, MFT (#88243)
Psychotherapy for Individuals and Couples