One question we receive from newly licensed health care professionals is whether under California law, they can form a limited liability company (LLC).
In general, the answer is that if their business provides services requiring a license, certification or registration pursuant to the Business and Professions Code the answer is: "No."
If the business provides services that require only a nonprofessional occupational license, then the answer is "yes." Here is a link to an Attorney General Decision on limited liability companies that addresses this issue:
http://www.ptbc.ca.gov/forms_pubs/ag_opinion_04_103.pdf
Before you form a corporation, make sure you consult an experienced accountant and regulatory attorney. In this day of do-it-yourself corporations, a consultation may save you time, money and limit your professional exposure.
Any questions or comments should be directed to: tgreen@greenassoc.com. Tracy Green is a principal at Green and Associates, Attorneys at Law, in Los Angeles, California. They focus their practice on the representation of licensed professionals and businesses in civil, business, administrative and criminal proceedings, with a specialty in health care providers.
