California telehealth MSO-PC: licensing, consent, and the medical corporation

Direct answer

For the full California statute list, read California CPOM. For the multi-state picture, start at the telehealth MSO-PC hub and the CPOM 50-state guide. Adding states? See the New York and Florida telehealth guides. General information only, not legal advice. Foundry is not a law firm.

Who has to be licensed

California follows the patient. The Medical Board's telehealth guidance says a physician treating a patient located in California must hold a California license, and that physician does not have to live in California. § 2060 lets an out-of-state physician consult with a California physician in limited cases, but the consultant cannot issue orders or take final authority over the patient. A national platform should treat every California visit as California practice.

Who may own the medical corporation

The MSO owns the software, brand, patient acquisition, and support staff, and bills the medical corporation for those services. Clinical hiring, protocols, coding, and prescribing decisions stay in the medical corporation. The CPOM compliance operating test lists the control rights a California buyer will look for.

Consent and prescribing online

B&P § 2290.5 requires the provider to inform the patient about telehealth and get verbal or written consent before the first telehealth visit, then document it. Skipping that step is unprofessional conduct, so build it into intake once and store it in the medical corporation's records.

§ 2242 requires an appropriate prior examination and a medical indication before prescribing dangerous drugs. The statute allows that exam by telehealth, including a questionnaire, only where the standard of care for the condition is met. A refill-heavy model or a questionnaire-first model should have a written protocol for each condition. Controlled substances add the federal rules: the DEA telemedicine flexibilities under 21 CFR 1307.41 run through December 31, 2026 Each prescriber needs a DEA registration and California prescribing authority, so check how the current federal rule treats registration in the patient's state.

Your brand name and the fictitious name permit

Under § 2415, a medical corporation that practices under a name other than its owners' names needs a Medical Board fictitious name permit. The board grants it only when the practice is owned and controlled by licensees and the name is not misleading. Most consumer telehealth brands need one, so file it alongside the formation work.

Investors and the 2026 overlays

Two California laws took effect on January 1, 2026. H&S Code § 1191 (SB 351) bars private equity groups and hedge funds involved with a physician practice from interfering with professional judgment and limits certain control terms. AB 1415 expands the health care transaction notice program to more MSO and investor deals. If a fund is in your cap table, review the MSA's control rights and the notice rules before you close.

Fees and the money flow

§ 650 bars compensation for patient referrals. Payers and patients pay the medical corporation. The medical corporation pays the MSO a fixed or cost-plus fee for defined non-clinical services, priced at fair market value. Run the MSA red-flag audit before you sign.

Setup steps for a California telehealth company

1. Map the visit types and the conditions you treat, and write the prior-exam standard for each one that ends in a prescription.
2. Match a California-licensed physician to own the medical corporation ($3,000/mo).
3. Form the professional medical corporation and the MSO, and sign an FMV management services agreement. See MSO-PC formation ($15,000).
4. File the fictitious name permit if you practice under a brand name.
5. License every treating physician in California and build telehealth consent into intake.
6. Check SB 351 and the AB 1415 notice rules if investors are involved, then enroll the medical corporation with payers.

Pricing

California telehealth MSO-PC FAQ

Do I need a California license to treat California patients by telehealth?

Yes. The Medical Board of California says physicians who treat patients located in California, including by telehealth, must hold a California license. They do not have to live in California. Business and Professions Code § 2060 allows only a limited consultation exception for out-of-state physicians working with a California physician, without orders or final authority over the patient.

Can a lay founder own a California telehealth company?

The founder can own the MSO and the platform. The clinical side has to be a professional medical corporation. Under Corporations Code § 13401.5 and Medical Board guidance, California physicians must own the majority of the shares, certain other licensed professionals may hold a minority, and lay people may hold none. The MSO is paid a fair-market-value fee for non-clinical services.

What consent does California require for telehealth?

Business and Professions Code § 2290.5 requires the provider to tell the patient about the use of telehealth and to get verbal or written consent before the first telehealth visit, and to document that consent in the record. Failing to do so is unprofessional conduct.

Can a California telehealth company prescribe after an online questionnaire?

Business and Professions Code § 2242 requires an appropriate prior examination and a medical indication before prescribing dangerous drugs. The exam may be done by telehealth, and the statute includes a questionnaire as an option, but only where the standard of care for that condition allows it. Confirm the standard of care for each condition you treat.

Do I need a fictitious name permit for a California telehealth brand?

A medical corporation that practices under a name other than its owners' names needs a Medical Board fictitious name permit under Business and Professions Code § 2415. Because consumer telehealth brands rarely match the owner's name, most need one before launch.

How much does Foundry charge for a California telehealth MSO-PC?

MSO-PC formation is $15,000 one-time. A California-licensed friendly PC owner is $3,000/mo. Formation typically takes 1 to 3 days after the states, the clinical model, and the physician match are scoped.

Related reading

Written and last reviewed 2026-10-23 by Matthew Milford, Founder. Sources: Medical Board of California telehealth guidance and fictitious name permit program; Cal. Bus. & Prof. Code §§ 650, 2060, 2242, 2290.5, 2400, 2415; Cal. Corp. Code § 13401.5; Cal. Health & Safety Code § 1191 (SB 351); AB 1415 (2025); 21 CFR 1307.41. Foundry PC is not a law firm. General information only, not legal advice.