Why should you consider a California Professional Corporation or PC for licensed professionals. The Professional Corporation is a special form of a corporate entity designed for those who are licensed by the State of California and working with other licensed professionals such as:
- Doctors
- Surgeons
- Dentists
- Optometrists
- Psychologists
- Psychiatrists
- Attorneys
- Architects
- Certified Public Accountants
- Veterinarians
Important Protections and Unique Benefits of the PC
The California Professional Corporation or PC for licensed professionals protects one licensed professional from the conduct of another within the corporation. For example, if one dentist commits malpractice, the other dentists in the PC are protected personally and professionally from the liabilities that result to their co-owner. However, there still may be joint liability for actions that are brought against the PC as a whole, such as someone who is injured while visiting the practice due to neglect or poor maintenance.
The California Professional Corporation offers unique provisions for medical or healthcare related businesses or licensed professionals. Your firm will be able to deduct many important expenses such as healthcare insurance, liability insurance and malpractice coverage. The PC also provides more advantageous retirement and 401(k) contributions for you and your partners.
There are specific limitations based upon the professions associated within the PC. Certain professional organizations have established naming regulations (what you name your business or practice). There are also limitations on who may own shares in the PC, as well as restrictions on those who are eligible to serve as officers or directors of the PC.
Pro Tip for Medical Professionals: The Management Service Organization or MSO
A California Professional Corporation or PC for licensed professionals such as physicians, dentists and others in the medical field or healthcare business often works extremely well when paired with a Management Service Organization or MSO. The MSO allows you to partner with providers of capital who are not licensed professionals in order to provide expertise in the areas of operations, business management, billing and collections, tax preparation and planning as well as facilities and computer hardware and software.
California has very specific laws prohibiting the corporate practice of medicine, but a properly structured and operated MSO is well within the laws of our state. The healthcare attorneys at the Watkins Firm have more than 40 years of experience advising and providing legal services to medical providers and healthcare businesses in San Diego and Southern California.
Learn how partnering with other professionals in an MSO can increase the profitability of your business model while increasing the quality of the patient experience as well as patient satisfaction while improving the delivery of healthcare-related services.
Ask the Watkins Firm About the California Professional Corporation or PC For Licensed Professionals
Ask your experienced startup, formation and business attorney at the Watkins Firm about the California Professional Corporation or PC For Licensed Professionals. If you are in the medical or healthcare business field t is important to understand the unique advantages and protections of the California Professional Corporation and ask about the advantages of a Management Service Organization or MSO.
The Watkins Firm has more than four decades of experience in these matters, and has extensive knowledge and insight into the laws and regulations that govern medical business entities. If you are interested in learning more about the California Professional Corporation or PC for licensed professionals or how an MSO might contribute to your medical practice or healthcare business we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
