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Business Formation Guide
licensingUpdated 2026-03-30

Does California allow professional LLCs for doctors and lawyers?

No. California does not permit professional LLCs (PLLCs). Doctors, lawyers, and other licensed professionals cannot form an LLC under California law. The state's LLC statute does not authorize professional limited liability companies for any regulated profession. California requires licensed professionals to use alternative entity structures that comply with professional practice regulations.

What structures must professionals use instead?

Professional Corporations (PCs)

California Corporations Code § 13400 et seq. authorizes Professional Corporations as the primary entity for licensed professionals. Doctors and lawyers must incorporate as PCs to practice their professions. PCs provide limited liability protection for shareholders while maintaining professional accountability standards. This is the standard structure for multi-practitioner medical and legal practices in California.

Partnerships

General Partnerships (GPs) and Limited Partnerships (LPs) are permitted for licensed professionals. Multiple doctors or lawyers can practice together as partners under California's Uniform Partnership Act provisions. GPs offer shared management; LPs allow limited partners to invest without participating in operations.

Sole Proprietorships

Individual practitioners may operate as sole proprietors without forming any entity. This structure offers no liability protection—personal assets remain exposed to malpractice claims.

Licensing and regulatory requirements

Professional licensing is separate from business entity formation. Doctors must obtain licenses from the Medical Board of California or Osteopathic Medical Board. Lawyers must be licensed by the State Bar of California. Individual licenses remain mandatory regardless of entity type.

All California businesses—including professional practices—must obtain local business licenses from their city and/or county. No state-level general business license exists. Additional permits (seller's permits, health permits) may apply depending on your practice location and services.

Next steps

  1. Contact your professional regulatory board for specific PC requirements and ownership restrictions.
  2. File Articles of Incorporation with the California Secretary of State.
  3. Obtain professional licenses before incorporation.
  4. Register for local business licenses with your city/county clerk.
  5. Consult a California business attorney to ensure compliance with professional regulations.

Do not attempt to form an LLC; California will reject it for licensed professionals. A Professional Corporation is your required entity structure.


This is general information, not legal advice. Consult a California business attorney for your specific situation.