Checklist For Medical Corporation Legal Compliance

What to know about Legal Compliance with A Medical Corporation

In many states, no individuals without proper license can own any share of medical corporations. Consequently, no medical practice can be run by anyone or any company except for medical corporation who has valid license. Therefore it is very important to know the related medical law’s details and scopes whether you are a physicians or licensed doctor. Or if you are already involved in this field of business, you will need to know legal issues surrounding these health professional practices.

A Look At Incorporation

If you are considering to form A Medical Corporation, there are two basic choices you have -  the C or S corporations. In order to begin, you will need to set up a desired corporation, and then corporation needs a Certificate of Authorization from the college of physicians and surgeons of the board. Medical corporations are quite tricky in law so it’s advisable to consult a business attorney who knows details about medical corporation law to draw together your corporate documents, which are various in their forms and contents.

Fictitious Name Permit – If you are licensed physician or any type of doctor who will practice under a fictitious or assumed name in public, then you will need to apply this fictitious name permit. The suggested name can’t be misleading, deceptive or confusing to any other names that were previously issued. This can be considered as DBA (Doing Business As) or a name that’s not the legal name of a medical corporation. In the majority of cases, a person will need to get an invented name permit from the Division of Licensing/Medical Board. You may also need to do a “separate fabricated name” filing with the local county recorder’s office.

Shareholders/Buy-Sell Agreement – As a medical professional practitioners, there could be more than one person in the same pratice facility. In case there are multiple doctors or medical corporation owners, then it will be best for the company to get shareholders to keep watch over the relationship with the partners. You never know what will happen in the near future after the launch of the company. So these mutual agreements will save persons a ton of money should the relationship between the partners goes south.

Buy-sell agreement is an important tool for formalizing the relationships between the owners, and will determine disputes between warring partners, so the the business can run smoothly. This includes exit provisions in cases where partners are not able to work together any longer.
You can use the business lawyer to handle buy-sell agreements at every stage, negotiating and drafting new agreements, thus minimizing any litigating situations over the entire contract rights.

Federal Employer Identification Number – Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. You can obtain your EIN from the IRS website easily.

Business Bank Accounts – After you’ve got the incorporation articles and your EIN, make sure to open your bank accounts.

Pick Your Location – Consider over time and choose right location for you and the partner. Once you do this, you need to look into the local zoning requirements to ensure that you can even do a medical practice in that location. Check if there is any potential issues with zoning of the area, such sewage treatment or medical trash disposal. Also you need to talk to the planning/permits department for this as well as other local requirements of your “proposed” location.

Real Property Lease – The office lease contract is very important and verify terms and conditions. This lease will bind you to that specific location for quite some time. In worse case, you’ll still have to pay rent even if the practice fails to make any real money. Ask a business attorney if you are unsure of details that you have to follow.

Trademarks – Medical pratice is categorized as professioinal field. Therefore, if you plan on having a medical practice that relies on a particular business name/trademark, you need to ensure that if anyone else in that area already has the rights to use the particular name. Be sure to check out the United States Patent and Trademark Office website, to find anyone using the name for medical practices within your region. If the Internet search yields no trademark issue, you need to trademark. You can also hire I.P law firms team of trademark lawyers and have them perform trademark search.

Local Business License – Contact your local state's business department. Also be sure to get your business license in the city you plan to operate in.

Seller’s Permit – If you plan on selling any type of merchandise, you’ll need a seller’s permit, which you’ll obtain from the State Board of Equalization.

Employer Filings and Withholdings – As you hire employees, make sure to file a form with the Department of Labor in the state. After that, you will always have to be in compliance with the employment law. Make sure to employ the services of a payroll company to handle all the employee wage withholdings, in federal and state level.

Workers’ Compensation and Other Insurance – Keeping employees takes a lot of work to manage. Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured while being employed. You’ll need an insurance broker to deal with the workers’ compensation insurance. According to law, you must have workers’ compensation. You might want to research and compare the best Workers' Compensation Insurance providers out there.