Professional Services
How We Support Professional Service Firms
Professional service organizations, including legal, medical, accounting, and other licensed practices, operate in an environment where regulatory compliance, ownership structure, fiduciary duties, and client service intersect. These businesses face unique legal requirements tied to licensing boards, professional corporation statutes, confidentiality obligations, and strict rules governing who may own, manage, or receive profit from the practice.
We partner with professional service firms of all sizes to help them form compliant entities, structure internal governance, navigate ownership transitions, and manage day-to-day operational and employment issues. Our goal is to provide clear, practical legal guidance that supports sound decision-making and long-term practice stability.
What We Help Professional Service Firms Accomplish
Professional Corporation & Entity Formation
Licensed professionals must comply with California’s specific rules governing professional corporations (PCs) and partnerships of licensed individuals, sometimes referred to as group practices. We guide firms through entity selection and formation, ensuring compliance with the Moscone-Knox Professional Corporation Act, applicable licensing board regulations, and restrictions on ownership and profit sharing.
We also draft shareholder agreements, bylaws, buy-sell provisions, and other foundational documents that reflect the unique dynamics of professional practices, including requirements for ownership by licensed individuals, limitations on passive investment, and protocols for handling disability, death, or mandatory retirement of owners.
Internal Structuring & Governance
Professional practices must balance smooth business operations with ethical and licensing constraints. We help firms design governance frameworks that clarify decision-making authority, voting rights, compensation models, capital contribution expectations, and management roles. For larger organizations, we assist in developing multi-tier structures, including management companies, professional entities, and administrative support affiliates, while ensuring compliance with California’s prohibition on the corporate practice of certain professions.
Our work also includes restructuring existing organizations to reflect growth, consolidate ownership, or streamline operations.
Regulatory & Licensing Compliance
Professional service firms face an evolving regulatory landscape enforced by bodies such as the State Bar of California, the California Board of Accountancy, and the Medical Board of California. We help practices remain compliant with rules governing advertising, fee arrangements, client consent, scope of services, confidentiality obligations, and ownership restrictions.
Bringing On New Partners, Shareholders, or Members
Adding new owners is a significant step for any professional practice. We support firms in designing admissions processes, drafting or revising partnership agreements and shareholder agreements, structuring equity compensation, and addressing capital contributions, vesting schedules, and governance implications.
Whether elevating associates to partnership, merging teams, or aligning ownership with long-term succession planning, we help ensure transitions are legally compliant and financially sound.
Employment & Independent Contractor Issues
Professional service firms typically rely on a mix of licensed professionals, administrative staff, and support personnel. We provide employment counsel tailored to this environment, including guidance on independent contractor classification, employment agreements, permissible restrictive covenants in California, compensation structures, handbook policies, and wage and hour compliance.
We also assist with onboarding, performance management, workplace disputes, and compliant separation practices, helping firms maintain stable teams while reducing legal risk.
Buying or Selling a Practice
Whether preparing for retirement, acquiring a practice, or merging with another firm, we guide professional service organizations through the sale, purchase, or transition of a business. We handle due diligence, draft and negotiate asset purchase agreements, stock purchase agreements, and management services agreements, and coordinate required notices and licensing board approvals.
We also help structure succession plans that account for ownership restrictions and the operational requirements of incoming leadership.
Who We’ve Helped
We have assisted law firms, medical practices, accounting firms, psychotherapists, CSLB-licensed contractors, and other licensed professional organizations across California. Our work includes forming professional corporations, guiding partner and shareholder transitions, assisting with mergers and acquisitions of small and mid-sized practices, and resolving operational disputes involving owners and staff.
We have supported clients through ownership reorganizations, buyout negotiations, expansion planning, and the sale or wind-down of long-established practices.
A Legal Partner That Understands Professional Practices
Professional service firms face unique pressures, including regulatory oversight, strict licensing rules, confidentiality obligations, and the challenge of balancing business operations with professional ethics. We bring a business-focused approach that helps firms operate smoothly, remain compliant, and build structures that support growth and long-term stability.
Our goal is to provide the legal clarity and support you need to focus on delivering excellent service to your clients or patients.