A professional medical corporation is a business entity formed by one or more licensed physicians to practice medicine. The corporation is responsible for the business aspects of the medical practice, such as billing and accounting, while the physicians are responsible for providing medical care to patients. They may also conduct research and develop new treatments and medications. Contact a Los Angeles physician attorney if you want to register your medical practice in a professional medical corporation.
How to form a professional medical corporation
Some advantages of a professional medical corporation (PMC) include the following:
- A PMC can help protect the personal assets of its owners from liability.
- A PMC can help attract and retain high-quality employees.
- A PMC can help provide continuity of care for patients if the owners retire or die.
- A PMC can help owners take advantage of certain tax benefits.
A professional medical corporation is a corporation that is organized to provide medical care or other health-related services. The following are needed to form a PMC.
- The corporation must be organized under a state’s laws that permit the formation of professional corporations.
- The articles of incorporation must set forth the corporation’s purpose and the incorporators’ names and addresses.
- The corporation must have a board of directors, and the bylaws must set forth the powers and duties of the board and the corporation’s officers.
- The corporation must have a professional license from the state in which it is organized.
Taxation of Professional Medical Corporations
The purpose of this section is to guide the taxation of professional medical corporations (“PMCs”). The term “medical professional” in this section includes physicians, dentists, optometrists, podiatrists, chiropractors, and opticians.
The general rule is that a medical professional must be licensed by the state where they practices. Most states require that a medical professional be approved by the state where they intend to practice to be eligible to form a PMC. However, some states have no such requirement. In those states, a medical professional may form a PMC without being licensed to practice medicine.
Maintaining a Professional Medical Corporation
The following officers must be designated by the corporation’s shareholders: a president, a secretary, a treasurer, and a chairperson of the board. The shareholders must elect the officers.
The officers must be designated by the corporation’s shareholders: a president, a secretary, a treasurer, and a chairperson of the board. The shareholders must elect the officers. The corporation’s shareholders may delegate to the board of directors the power to elect officers.
The corporation’s shareholders may delegate to the board of directors the power to elect officers. The corporation’s board of directors must be composed of a minimum of three members. The board members must be shareholders of the corporation. The corporation’s shareholders may delegate to the board of directors the power to elect officers.
