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  • California Physical Therapy Association (CPTA)

Corporations

What Type of a Corporation Can I Form?

  1. A General Corporation consists of non-licensed shareholders.

    Physical Therapy Corporation Ownership by a Layperson
    Physical Therapist Assistants in the Realm of Corporation Ownership

  2. A Professional Corporation consists of all licensed physical therapist shareholders.

    Pursuant to Section 2693 of the Business and Professions Code, "The name of a physical therapy corporation and any name or names under which it may render professional services shall contain the words ‘physical therapy’ or ‘physical therapist’, and wording or abbreviations denoting corporate existence."

Sections 2690-2693 of the Business and Professions Code, relating to physical therapy corporations are available under Laws and Regulations on the PTBC’s website.

The PTBC does not require individuals to register with the PTBC in order to form a corporation, nor does the name of the corporation need approval by the PTBC; however, the corporation must conform to the applicable statutes and regulations. For further information on how to establish a Physical Therapy Practice or form a Corporation, please consult an Attorney, the California Physical Therapy Association, or the Secretary of State's office.

The PTBC is unable to provide consultation services regarding establishing a corporation.

Attorney General Opinion on Limited Liability Company

A health care profession is prohibited from being a Limited Liability Company.

AG Opinion No. 04-103 - Limited Liability Company