This post answers several frequently asked questions about professional corporations in North Carolina, specifically medical professional corporations.
What is a Professional Corporation?
In North Carolina, the Professional Corporation Act (N.C. Gen. Stat Chap. 55B) allows various professionals, including architects, attorneys, and doctors, among others, to incorporate. These professionals can also render services through limited liability companies or registered limited liability partnerships under certain conditions, with similar liability protections for owners and managers. Each professional involved in providing or supervising services can be held personally liable for their own deficiencies, but not for matters they were not directly involved in or supervising.
In the medical field, who is permitted to form a professional corporation (PC), association (PA), or professional limited liability company (PLLC)?
A licensed Physician or Physician Assistant (PA) may form a professional entity as a sole shareholder/member or can organize with other physicians and physician assistants to provide medical services.
Can a Physician Assistant fully own a practice and hire physicians as employees or independent contractors?
No. Physician Assistants that are the sole owners of their practices are not permitted to hire physicians to practice medicine for the entity.
Can a Physician Assistant and a Nurse Practitioner own a professional entity together?
No, Physician Assistants and Nurse Practitioners are not permitted to own a professional entity together according to N.C. Gen. Stat. § 55B-14 (a) and (c).
Can a Licensed Practical Nurse (LPN) own a professional entity?
No, LPNs may not own a professional entity. Registered Nurses (RN) are permitted to own a PC or PLLC for the purposes of providing nursing and related services.
How do I start a PLLC, PA, or PC?
It depends on the licensing board. If you are a Registered Nurse or Nurse Practitioner, it will require approval through the NC Board of Nursing. If you are a Physician or PA, it will require approval through the NC Medical Board.
Additional Notes
Professional corporations are available for any individual that provides professional services. This is not just medical professionals! N.C. Gen. Stat. § 55B-2 defines professional services as those that are offered to the public and require obtaining a license from a licensing board prior to offering services. Some of these professions aside from medical professionals include attorneys, public accountants, landscape architects, geologists, and more.
There are different standards and procedures for each profession. Setting up a professional corporation generally requires approval from the applicable licensing board.
If you are looking to set up a professional corporation, contact Revolution Law Group for help and guidance. We are ready to serve you.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.