Are you a doctor who wishes to establish yourself and your practice? Maybe you are a nurse practitioner with the same goal. If so, you probably have asked, “What is a medical corporation and how is it set up?”
Table of Content
Who to Contact to Answer Your Question – “What Is a Medical Corporation?”
If you have been posing this question, you will want to read the following article. Also, contact me and my legal team once you have read the contents. We can help you set up a medical corporation and can elaborate further on “What is a medical corporation?”
Book a call to speak to us here: https://mollaeilaw.com today.
What Is a Medical Corporation and Its Benefits?
When you ask “What is a medical corporation and its benefits?” you will discover several advantages. One of these benefits is legal protection.
You can separate your business assets and personal assets, which reduces the risk of liability from creditors or possible lawsuits. While a medical professional corporation cannot be set up to protect a physician from medical malpractice claims, it will protect his or her personal assets.
When you establish a medical practice, it is also important to build business credit. This is especially advantageous if you wish to sell your practice or form a medical partnership. Moreover, you can set up your medical corporation as an S-corporation so profits and losses pass through to your shareholders.
This pass-through benefit prevents getting taxed twice, as you do in a traditional C corporation. In addition, by choosing a subchapter S formation, you also reduce the self-employment tax on any shareholders who draw distributions.
Moreover, you can set up a retirement plan and health benefits when you establish a professional medical corporation.
What Is a Medical Corporation Legal Mistake? Why You Need an Attorney
You need my legal services, especially when you look at what can go wrong, or what is a medical legal mistake you want to avoid. For example, any one of the following issues can happen when you don’t retain the services of a top business attorney:
- You can form an entity that does not offer all the protections you require.
- You may miss a compliance timeframe to file a subchapter S status.
- You may incur monetary penalties, again, because of noncompliance.
- You may determine that your corporation is a de facto corporation rather than a de jure corporation, or one that has fully complied legally with incorporation. A de facto corporation is a recognized corporation, but one whose articles of incorporation have been improperly filed.
To ensure the best results contact an experienced business attorney. Email email@example.com.
What is a Medical Corporation and How Is It Formed?
When you ask the question, “What is a Medical Corporation?” you, no doubt also want to know how it is formed. Normally, you need to follow certain naming rules and make sure your practice’s name is unique and compliant with current legal guidelines.
After deciding on a compliant name, you must draft articles of incorporation. This should be done by an expert in the legal field. To help you with this part of the incorporation process, don’t hesitate to contact me and my legal staff.
Book a call to speak to us here: https://mollaeilaw.com.
After you file the articles of incorporation and other documents, you are officially registered. Read further about the incorporation process and compliance.
What is a Medical Corporation Business’s Process for Compliance?
You will also need my legal help to define the legal structure of your corporation and set up the bylaws, or the rules governing the running of your medical corporation. You can refer to the following steps when asking “What is a medical corporation business’s process for compliance?”
- Conducting an initial board of directors’ meeting to elect officers and director and issue shares of stock.
- Submitting and filing the articles of incorporation with the Secretary of State’s office.
- Obtaining an Employer Identification Number or EIN from the IRS. (This number must be obtained to conduct banking business and file your corporation’s taxes.)
- Opening a corporate bank account.
- Filing a Statement of Information with the Secretary of State’s office.
- Filing an S-corporation election with the Internal Revenue Service (IRS), if applicable
- Applying for the proper licenses.
- Applying for a “doing business as” (DBA), if applicable.
I can help direct you to say compliant. Email firstname.lastname@example.org for further details now.
What Is a Medical Corporation Business’s List of Restrictions?
When setting up a medical professional corporation, you also need to ask, “What is a medical corporation business’s list of restrictions? Usually, professionals must be licensed to practice medicine to be a shareholder. Shares owned by other members than the owners and direct corporate personnel cannot go over 49%. Licensed physician shareholders must also outnumber the shareholders who are not professionally licensed.
You can be a member shareholder of a medical corporation if you are a professional licensed in psychology, nursing, podiatry, optometry, social work, chiropractic care, and acupuncture. Physician assistants who are licensed can also own shares. If you only have one shareholder, you can only have one director.
What is a Medical Corporation Business Group Practice Incentive?
If you want to know, “What is a medical corporation business’s group practice incentive?” you will find more than one. Legally, it is not a good idea to form a general partnership, as doing do exposes each group member to the debts and liabilities of the other members. Incorporating is a better move both personally and professionally.
Reviewing the Two PC Structures – the C Corporation and S Corporation
You can form a professional medical corporation using one of two structures – a C corporation or an S corporation. An S corporation is a designated subchapter S company, which allows you to incorporate without the burden of double taxation. With this structure, you can submit less paperwork.
However, a C corporation also features some advantages worth considering. For example, C corporation owners and employees receive pre-tax parking and commuter reimbursements and flexible spending accounts (FSAs). FSAs are used for health care and dependent care. You can also take advantage of pre-tax insurance premiums by establishing a C professional corporation.
To see what type of corporate structure works best for you, it is best to consult with an attorney. I can answer your questions and guide you as well. Email email@example.com today.
What To Do Next
As you can see, when you ask the question, “What is medical corporation?” you don’t necessarily get a clear-cut answer. A medical corporation must be tailored to the owner or owners of the practice.
Whether you are a solo practice or a group practice, you need to sort through the benefits and drawbacks of setting up your practice as a professional corporate entity.
Give me a call or email for an appointment today. The sooner you set up your medical practice, the sooner you can experience the freedom and success of working on your own. Email firstname.lastname@example.org today.
Start Your U.S. Business Confidently
Join 3,000+ Entrepreneurs Who Have Successfully Started Their U.S. Business