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Start a clinic / California

How to start a medical clinic in California.

What a founder needs to know in California: who can own a practice, which state approvals apply, how nurse practitioners and PAs can work, and where to register. Every fact links to its source.

Updated October 2026Sources linked
CACaliforniaStarting a clinic, at a glance
Corporate practice of medicine
StrictOwnership generally limited to licensed physicians
Certificate of need program
NoNo CON program for clinics
Nurse practitioner authority
Restricted practiceAANP classification
Register your business with
California Secretary of State
Checked October 2026

Ownership: California bars corporations and other artificial entities from practicing medicine (Bus. and Prof.

Certificate of need: No.

Nurse practitioners: AANP classifies California as restricted practice: NPs generally work under standardized procedures with a physician, but under AB 890 a 103 NP who completes 4,600 hours (three full-time years) of transition to practice may work without standardized procedures in a group setting with physicians, and after three more years or 4,600 hours as a 103 NP may apply for 104 NP status to practice outside that setting.

Who can own a medical clinic in California

California bars corporations and other artificial entities from practicing medicine (Bus. and Prof. Code 2400), and the Medical Board of California says non-physicians may not own or operate a business that evaluates, diagnoses or treats patients. Non-physician investors typically use an MSO that provides only administrative support to a physician-owned professional medical corporation, and the Board lists clinical and key business decisions (records, hiring physicians, payer contracting, coding and billing, equipment) that cannot be delegated to an MSO.

Sources: mbc.ca.gov, codes.findlaw.com

Business entity and registration

Physicians usually form a professional medical corporation; the Medical Board states that operating a medical practice as an LLC, LLP or general corporation is prohibited. Corporations are formed through the California Secretary of State's bizfile Online system.

Sources: mbc.ca.gov, sos.ca.gov

Certificate of need in California

No. California has no CON program, so physician offices, ASCs and imaging centers do not need a CON.

Sources: ncsl.org

Licenses, registrations and state agencies

CDPH clinic licensing does not apply to a clinic or office owned or leased and operated by licensed practitioners for their own practice (Health and Safety Code 1206(a)), although that exemption does not cover surgical or specialty clinics. Clinic categories licensed under HSC 1204 are primary care clinics (community and free clinics) and specialty clinics (surgical, chronic dialysis, rehabilitation and alternative birth centers). Separately, outpatient settings that use anesthesia beyond defined levels must be accredited, certified or licensed (HSC 1248.1).

Sources: codes.findlaw.com, codes.findlaw.com, codes.findlaw.com

California-specific requirements to know

Prescribers with a DEA registration must register for CURES, California's prescription drug monitoring program, and Health and Safety Code 11165.4 requires consulting it in defined circumstances before prescribing controlled substances. Outpatient settings using anesthesia above the statutory threshold must be accredited (HSC 1248.1), and physicians must report a patient death after an outpatient procedure within 15 days. 103 and 104 NPs must post a 48-point notice and tell new patients that an NP is not a physician.

Sources: oag.ca.gov, codes.findlaw.com, mbc.ca.gov, rn.ca.gov

Agencies you will deal with

Nurse practitioners and physician assistants

Nurse practitioners: AANP classifies California as restricted practice: NPs generally work under standardized procedures with a physician, but under AB 890 a 103 NP who completes 4,600 hours (three full-time years) of transition to practice may work without standardized procedures in a group setting with physicians, and after three more years or 4,600 hours as a 103 NP may apply for 104 NP status to practice outside that setting.

Sources: storage.aanp.org, rn.ca.gov

Physician assistants: A PA may practice only under a written practice agreement with at least one supervising physician, who must be available in person or remotely whenever the PA examines a patient and remains responsible for the PA's care.

Sources: mbc.ca.gov

Med spas, injectables and IV therapy in California

The Medical Board treats a spa business owned by non-physicians that offers Botox or other medical procedures and hires a physician as medical director as a corporate practice violation, and says a physician acting as medical director of a practice he or she does not own may be aiding and abetting unlicensed practice. Med spas are therefore typically owned by a physician (or physician-owned medical corporation), with a management company handling non-clinical operations. Under Bus. and Prof. Code 2417.5, a noncompliant business offering elective cosmetic procedures can also face false claims penalties.

Sources: mbc.ca.gov

Planning an aesthetic or IV business? See how to start a med spa and how to start an IV therapy business.

Step-by-step checklist in California

  1. Choose your structure and check ownership rules. Decide who will own the practice and confirm it fits California’s corporate practice of medicine rules. California bars corporations and other artificial entities from practicing medicine (Bus. and Prof.
  2. Form the entity with the California Secretary of State. Physicians usually form a professional medical corporation; the Medical Board states that operating a medical practice as an LLC, LLP or general corporation is prohibited.
  3. Get federal numbers. Apply for an EIN from the IRS, then a Type 2 NPI for the practice and Type 1 NPIs for each clinician through NPPES.
  4. Confirm licenses with the Medical Board of California (MDs); Osteopathic Medical Board of California licenses DOs. Every physician needs a California license. Check the board’s rules for any practice registrations, supervision agreements or office requirements before opening.
  5. Check certificate of need and facility licensing. No. California has no CON program, so physician offices, ASCs and imaging centers do not need a CON.
  6. Register to prescribe. Register with the DEA for controlled substances and complete any California controlled substance registration and prescription monitoring program enrollment. Prescribers with a DEA registration must register for CURES, California's prescription drug monitoring program, and Health and Safety Code 11165.4 requires consulting it in defined circumstances before prescribing controlled substances.
  7. Set up lab, safety and privacy basics. Get a CLIA certificate if you will run any lab tests, including waived tests, and put HIPAA privacy and security and OSHA policies in place.
  8. Enroll with Medicare, Medicaid and insurers. Enroll in Medicare through PECOS, enroll with Medi-Cal (Department of Health Care Services) and start commercial credentialing early, because payer enrollment often takes months.
  9. Plan staffing around NP and PA rules. AANP classifies California as restricted practice: NPs generally work under standardized procedures with a physician, but under AB 890 a 103 NP who completes 4,600 hours (three full-time years) of transition to practice may work without standardized procedures in a group setting with physicians, and after three more years or 4,600 hours as a 103 NP may apply for 104 NP status to practice outside that setting.
  10. Launch your marketing before opening day. Claim your Google Business Profile, publish a website with online booking and start ads and content four to eight weeks before you open, so the schedule is not empty on day one.

The national steps are explained in more detail in our guide to how to start a medical clinic, and costs are broken down in how much it costs to start a clinic.

Marketing a new clinic in California

New clinics usually fail on cash flow before they fail on care. The fastest fix is patients booked before opening day: a complete Google Business Profile, a website with online booking, local search ads and a few weeks of social content showing the team and the space. We run that launch for new clinics and keep it going once the doors open.

Plan your California launch with us →

Important. This guide is general information checked against official and professional sources in October 2026. It is not legal advice. Rules change and details depend on your services, so confirm your plan with a healthcare attorney licensed in California and with the agencies listed above.

Sources

  1. https://www.mbc.ca.gov/Licensing/Physicians-and-Surgeons/Practice-Information/
  2. https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-2400/
  3. https://www.sos.ca.gov/business-programs/business-entities
  4. https://www.ncsl.org/health/certificate-of-need-state-laws
  5. https://storage.aanp.org/www/documents/no-index/state-fact-sheets/California.pdf
  6. https://www.rn.ca.gov/practice/ab890.shtml
  7. https://www.mbc.ca.gov/FAQs/default.aspx?cat=Licensees&topic=Physician%20Assistants
  8. https://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-1206/
  9. https://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-1248-1/
  10. https://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-1204/
  11. https://oag.ca.gov/cures

Nearby state guides

OregonNevadaArizonaAll states
California questions

Starting a clinic in California, answered.

Can a non-physician own a medical clinic in California?
California bars corporations and other artificial entities from practicing medicine (Bus. and Prof. Code 2400), and the Medical Board of California says non-physicians may not own or operate a business that evaluates, diagnoses or treats patients. Non-physician investors typically use an MSO that provides only administrative support to a physician-owned professional medical corporation, and the Board lists clinical and key business decisions (records, hiring physicians, payer contracting, coding and billing, equipment) that cannot be delegated to an MSO.
Does California require a certificate of need to open a clinic?
No. California has no CON program, so physician offices, ASCs and imaging centers do not need a CON.
Can nurse practitioners open their own practice in California?
AANP classifies California as restricted practice: NPs generally work under standardized procedures with a physician, but under AB 890 a 103 NP who completes 4,600 hours (three full-time years) of transition to practice may work without standardized procedures in a group setting with physicians, and after three more years or 4,600 hours as a 103 NP may apply for 104 NP status to practice outside that setting.
Who can perform Botox, laser or IV therapy in California?
The Medical Board treats a spa business owned by non-physicians that offers Botox or other medical procedures and hires a physician as medical director as a corporate practice violation, and says a physician acting as medical director of a practice he or she does not own may be aiding and abetting unlicensed practice. Med spas are therefore typically owned by a physician (or physician-owned medical corporation), with a management company handling non-clinical operations. Under Bus. and Prof. Code 2417.5, a noncompliant business offering elective cosmetic procedures can also face false claims penalties.
Where do I register a medical practice in California?
Physicians usually form a professional medical corporation; the Medical Board states that operating a medical practice as an LLC, LLP or general corporation is prohibited. Corporations are formed through the California Secretary of State's bizfile Online system.