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What is a medicine professional corporation?

What is a medical professional corporation? When you incorporate, you create a new legal entity (the corporation) that becomes the owner of your medical practice. You own shares of the corporation and are paid a salary, bonuses and/or dividends for your work.

Who can own a medical clinic in California?

By law, in California, a PC must be at least 51% owned by a physician or physicians licensed in the state; up to 49% may be owned by specified other types of healthcare licensees, such as registered nurses, physician assistants, and chiropractors. [32] Non-physicians are prohibited from owning any shares of a PC.

Can a corporation own a medical practice in California?

In California, medical practices may not form traditional business entities such as LLCs or regular corporations. Instead, medical practices are limited to Professional Corporations (PCs), the owners of which must have a specific license.

Do I need to form a professional corporation in California?

Unlike many other states, California does not allow professionals to form a limited liability company or professional limited liability company. In California, professionals must form either a professional corporation or a registered limited liability partnership.

What is the purpose of a professional corporation?

Professional corporations provide a limit on the owners personal liability for business debts and claims. Incorporating cant protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate.

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Can a corporation own a medical practice in California?

In California, medical practices may not form traditional business entities such as LLCs or regular corporations. Instead, medical practices are limited to Professional Corporations (PCs), the owners of which must have a specific license.

Who can be a shareholder of a medical professional corporation?

If youre a family member of a physician (for example, a parent, spouse or common-law partner, sibling or child), you might be a shareholder in their medical professional corporation.

What is a professional corporation and why would this structure be an advantage to a physician?

As a business structure, a professional corporation offers an important benefit to physicians. It allows you to access corporate liability protection while remaining personally responsible for your professional practice.

How do I set up a medical corporation in California?

File Form 2553 for S-Corporation Tax Election for the Professional Medical Corporation. Pay California Corporate Taxes and Fees to the California Franchise Tax. Register with the EDD if you will be hiring employees. Apply for local business registration and licenses.

What is the purpose of a professional corporation?

Professional corporations provide a limit on the owners personal liability for business debts and claims. Incorporating cant protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate.

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What is a medicine professional corporation?

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Can a corporation own a medical practice in California?

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What is a professional corporation and why would this structure be an advantage to a physician?

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