Have you considered a California Professional Corporation for licensed professionals in San Diego or anywhere in California as a business entity option?  California has developed a specific corporate entity for medical professionals and other professionally licensed professions in our state. The California Professional Corporation or PC is uniquely designed to protect individual professionals in a practice while providing the veil of a corporate entity.

3 Key Takeaways Regarding a California Professional Corporation for Licensed Professionals in San Diego or Anywhere in California:

• If you are forming a new medical practice, healthcare entity, or a group of licensed professionals you need a law firm with extensive experience in California.
• The California Professional Corporation or PC provides specific protections for licensed professionals, and advantages that are unavailable in any other form of business entity here in the State of California.
• California law limits those who can own a monetary or voting interest in a California Professional Corporation.  They must be a licensed professional under the laws of the State of California.

Starting a California Professional Practice and Considering an MSO

If you are planning to start a medical practice, Management Services Organization or MSO, dental practice, architecture or engineering firm we invite you to contact the experienced business formation attorneys at the Watkins Firm and learn about when to use a California Professional Corporation for licensed professionals here in San Diego and across the State of California, as well as the unique protections available through a California PC.

The California Professional Corporation or PC was specifically developed for licensed professionals with an advance degree who practice together, yet retain individual liability.  For example, under the protections of the California Professional Corporation individual professionals cannot be held corporately responsible for the negligent actions or liabilities incurred by any other professional in the corporation.  The California Professional Corporation for licensed San Diego professionals provides specific advantages to these high earning professionals as well.  The PC increases the levels of contribution to retirement vehicles such as a 401(k) and provides the ability to offer and receive tax deductions for many traditional employment related benefits including:

• Health Insurance
• Disability Insurance
• Life Insurance
• Dependent Care

A California Professional Corporation for licensed professionals is the perfect entity for anyone with a professional license, or a company of licensed professionals.

When to Choose a Professional Corporation for Licensed San Diego Professionals

California law limits those who can own a monetary or voting interest in a California Professional Corporation.  You must be a licensed professional with an appropriate advance degree in order to become a shareholder, officer or director of the Professional Corporation or PC.

Pro-Tip: “It’s wonderful. It’s complicated, and it is completely involved. Unlike any other law we do. We’ve been doing this since the 1980s, representing doctors and medical entities, and physicians are the smartest people on the planet and they operate in laws that are the most complicated for any business I’ve ever heard of. How’d you get into working with doctors? My first job as an attorney I started working for an attorney named Chris Popov, who’s with me today. And that’s what his practice was, forming, selling and buying healthcare providers, companies, forming medical corporations, PT clinics, MRI centers, psychiatric groups that operated in multiple states, all kinds of complex laws, medical rules and regulations. And it, it took many, many years to master this area of law. I’m still learning.

The medical practice act, business and professions code section 2052 and the California business and professions code section 2400, generally cover a lot of what you can and can’t do. And one of the things you have to understand is who and can’t own a healthcare practice and what types of procedures you can use to facilitate the sale of a healthcare practice, to other licensed professionals. And also, how can we involve other business entities that aren’t licensed professionals in such a transaction?

The California Professional Corporation is a healthcare provider’s only business vehicle. Healthcare providers can’t be limited liability companies. They can’t be these other types of entities. They can be general partners, which is severe liability, or they can be professional healthcare corporations, which shields them from personal liability. To some extent, although a licensed doctor, the one who’s doing the work is always going to be personally liable. That’s why they have to spend so much money on malpractice insurance, but it also is a vehicle where you can bring in other shareholders who qualify. And there are a list of exceptions. Usually most of the owners of a professional corporation providing healthcare have to be licensed healthcare personnel, but there’s a list of exceptions to that law, but it is what doctors use to do business.

Most healthcare businesses have realized the cost savings and profitable advantages of Management Services Organization or MSOs. They can enter into agreements with other corporations or other business service providers. They can buy their own ancillary service providers as long as they comply with all the requirements for that too. So a sole medical practice through their medical corporation can branch out into other forms of business if they know how to do it. And if they work with an experienced lawyer at the Watkins Firm, we can structure everything so that they’re in compliance with Medicare and also their licensed rules and regulations for California, and any other state they’re in.” – Dan Watkins, Founding Partner

The Watkins Firm has served the professional and medical / healthcare industry in San Diego and throughout the State of California for almost four decades.  We assist with all aspects of business formation and ensure compliance with all federal, state and local laws and regulations including Occupational Safety and Health Administration (OSHA) regulations, the Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley Act.  If you are considering the formation of a California Professional Corporation for licensed professionals here in San Diego or anywhere in the State of California we invite you to review our Podcasts “Episode 7: Medical Practices and Healthcare Businesses, Episode 30 – Management Services Organizations or MSOs, and Episode 37 – Medical Practice and Healthcare Governance and Compliance,” as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.

Meet Daniel Watkins:

Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through.  Dan enjoys digging into the facts and finding creative solutions to problems.  He contributes his insights candidly and constructively.

Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.

Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.

He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.

THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR

Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.

In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.