Physician Assistant Professional Corporations In California: A Comprehensive Guide

Physician Assistant Professional Corporations In California: A Comprehensive Guide

California’s healthcare landscape provides numerous opportunities for physician assistants (PAs) to expand their careers, including the ability to form their own professional corporations. Establishing a Physician Assistant Professional Corporation (PAPC) allows PAs to operate independently within legal and regulatory frameworks, offering their expertise in delivering quality care. This guide outlines the step-by-step process of starting a PAPC in California, focusing on compliance, legal requirements, and key considerations to ensure your success.

What is a Physician Assistant Professional Corporation?

A Physician Assistant Professional Corporation is a legal entity formed under California’s Moscone-Knox Professional Corporation Act. It allows licensed PAs to provide medical services and operate their practice in compliance with the Medical Board of California’s regulations. By forming a PAPC, PAs can enjoy benefits such as liability protection, tax advantages, and enhanced credibility. For instance, liability protection shields personal assets from business-related lawsuits, tax advantages allow for potential deductions on business expenses, and enhanced credibility can attract more patients and partnerships by showcasing a professional corporate structure.

Key Steps to Forming a Physician Assistant Professional Corporation in California

1. Verify Eligibility Requirements

Before forming a PAPC, ensure you meet the following eligibility criteria:

  • You must hold a valid Physician Assistant license issued by the California Physician Assistant Board.
  • At least 51% of the corporation’s shares must be owned by licensed PAs.
  • Up to 49% of the shares may be owned by other licensed healthcare professionals, such as physicians, nurse practitioners, or acupuncturists.

2. Choose a Name for Your Corporation

Your PAPC’s name must comply with California’s naming regulations, including:

  • Include “Physician Assistant” and a designation such as “Professional Corporation” or an abbreviation like “PC.”
  • Avoiding misleading terms or suggesting unauthorized services.
  • Ensuring the name is unique and not already in use. Use the California Secretary of State’s online database to verify name availability.

3. File Articles of Incorporation

Submit the Articles of Incorporation (Form ARTS-PC) to the California Secretary of State. This document establishes your PAPC and includes essential details such as:

  • The corporation’s name.
  • Its purpose: providing professional services as a Physician Assistant.
  • The agent for service of process (individual or entity authorized to receive legal documents on behalf of the corporation).

Contact us today at 424-256-6686 to schedule a consultation or book a meeting HERE

4. Create a Corporate Bylaws Document

Corporate bylaws outline the internal rules governing your PAPC. Key elements include:

  • Procedures for shareholder meetings and voting.
  • Roles and responsibilities of corporate officers.
  • Guidelines for transferring shares.

5. Obtain an Employer Identification Number (EIN)

Apply for an EIN from the IRS. This number is essential for:

  • Opening a business bank account.
  • Filing taxes.
  • Hiring employees.

6. Secure Professional Liability Insurance

Professional liability insurance is critical for protecting your PAPC against malpractice claims. Ensure your coverage complies with the Medical Board of California’s requirements.

7. Establish Practice Agreements

In California, PAs must work under the supervision of a licensed physician, and a practice agreement must be established. This agreement outlines the collaborative relationship between the PA and the supervising physician, specifying the scope of practice, supervision protocols, and methods for ensuring quality care. Key components of a practice agreement include:

  • Defined medical tasks and procedures the PA is authorized to perform.
  • Supervision levels, including availability requirements for the supervising physician.
  • Protocols for patient referrals and consultations.
  • Methods for reviewing and evaluating PA performance.

Ensure that your practice agreement complies with California state laws and aligns with the operational needs of your PAPC.

8. Register with the California Secretary of State and Other Agencies

  • Statement of Information: File a Statement of Information (Form SI-PC) within 90 days of incorporating and biennially thereafter.
  • California Franchise Tax Board: Register with the California Franchise Tax Board for tax purposes.
  • Local Business License: Obtain a business license from your city or county.

9. Maintain Compliance with Regulatory Bodies

  • Professional License Renewal: Ensure your PA license remains active.
  • Corporate Meeting Minutes: Document annual meetings of shareholders and directors.
  • Tax Filings: File federal and state taxes timely to avoid penalties.

FAQs About Physician Assistant Professional Corporations

Can PAs Own 100% of Their Corporation?

Yes, PAs can own 100% of their PAPC, provided they are the only shareholders. However, California allows other licensed professionals to hold minority shares.

Are PAs Allowed to Form a Sole Proprietorship Instead?

While a sole proprietorship is an option, it does not provide the liability protection offered by a PAPC. Most PAs choose to incorporate for this reason.

Can a PAPC Employ Other Professionals?

Yes, a PAPC can employ other healthcare professionals, such as medical assistants, administrative staff, and licensed practitioners, to support its operations.

Why Choose Mirage Law for Your Physician Assistant Professional Corporation?

Mirage Law specializes in assisting healthcare professionals with forming and managing professional corporations in California. With extensive experience navigating the complexities of compliance and regulatory requirements, our team ensures your PAPC is set up for long-term success. Contact us today at 424-256-6686 to schedule a consultation or book a meeting HERE and take the first step toward launching your Physician Assistant Professional Corporation.

Final Thoughts

Starting a Physician Assistant Professional Corporation in California is a significant milestone for healthcare professionals seeking independence and career growth. By following this guide and partnering with legal experts like Mirage Law, you can confidently establish your practice while adhering to all legal and regulatory standards.

Call Mirage Law today at 424-256-6686 to get started on forming your Physician Assistant Professional Corporation in California.