In this video, you get answers to these questions:

  • What is the corporate practice of psychology?
  • What is the Professional Firm Act?
  • Who should own a psychology clinic?

Video Transcript

Is the corporate practice of psychology legal in Minnesota? That’s the question I’m going to answer today. I’m Aaron Hall, a business attorney in Minnesota. You can learn more at Please see the disclaimer below.

The corporate practice of psychology, what is that? Essentially it’s when a corporation owns a psychology clinic. In other words, the psychology clinic is not owned by a licensed psychologist, but instead is owned by a non-licensed individual or corporate entity. The bottom line is a Minnesota psychology clinic must be owned by a licensed psychologist. A psychology clinic cannot be owned by a corporation or non-licensed individual. There are circumstances where professionals with various licenses can own a clinic offering various services. You cannot have non-licensed individuals or investors, for example, owning a psychology clinic in Minnesota.

Here’s why. The Minnesota has what’s called the Professional Firms Act. The Minnesota Board of Psychology has taken the position that anyone who owns a psychology clinic and has an entity, a corporation or an LLC, must opt into the Professional Firms Act. That requires ownership by a licensed psychologist.

In Minnesota, if you want to have a LLC or corporation for your psychology clinic, it needs to be owned by a licensed psychologist, at least in part. You could have some other license holders as well. It needs to elect to be governed under the Professional Firms Act.

Now you might say to yourself, the Professional Firms Act seems to give some wiggle room. It says that you can opt in, that you don’t have to opt in. That’s true, but the Minnesota Board of Psychology has taken the position that you must opt in if your LLC or corporation are providing services that require a license in the area of psychology. This has yet to be challenged in the courts. It’s possible that could be challenged and that the Board of Psychology would lose, but at least as it stands right now, if you don’t want to be dealing with conflict with the Minnesota Board of Psychology, a psychology clinic must be owned at least in part by a licensed psychologist.

To learn more about the Professional Firms Act and as it relates to psychologists, check out or see the link in the description below. I’m Aaron Hall. Thanks for joining today. This page has other information on this topic and other videos that relate. See the description below.

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