The term "psychologist" is legally restricted for those with Ph.Ds or Psy.Ds in clinical or counseling psychology. The term "psychotherapist" can mean several different things, and people who call themselves "psychotherapists" can have various degrees. In short, no, you do NOT need a doctoral degree in order to do psychotherapy. Many MFTs and MSWs practice in the state of California. You do have to be licensed under those degrees though. You can have a private, unsupervised PP in CA with these degrees, but, I would keep in mind that masters level providers are reimbursed at a much lower rate for their services compared to doctoral level professionals....thus, making a PP harder to maintain (financially) for masters level individuals. Many work in hospitals, community clinics, or within group private practices with psychiatrists and psychologists, etc.