Lawless officially filed her lawsuit in the U.S. District Court in San Francisco, charging that the the LPGA's ban violates California's civil rights policy.
Her contention is that the organization's policy of being "a female at birth" goes against the Civil Rights policy.
She is looking to prevent the LPGA from holding tournaments in the state of California unless the rules are changed and transgender players are allowed to compete.
The Long Drivers of America is also named in the lawsuit.
Lawless cited the International Olympic Committee, which altered its policy on transgender athletes in 2004.
The IOC allows transgender competitors providing gender reassignment surgery has been conducted along with two years of hormone-replacement therapy.