Understanding the roles within California Medical Corporations is vital for both experienced physicians starting new ventures and healthcare professionals joining existing practices. Here, we clarify the specific ownership and management roles, detailing who can be a shareholder, director, and officer, while highlighting the legal requirements and restrictions in California. Whether you’re establishing a corporation with a single shareholder or multiple, this information provides the necessary insights for a confident and compliant process.

California Medical Corporations with one Owner/Shareholder

Shareholder/Owner: In a medical corporation with just one shareholder, it’s required that this individual holds a valid physician’s license. This ensures that the primary ownership of the corporation remains in the hands of a licensed medical professional, maintaining the integrity and purpose of the professional medical corporation.

Director: The governance of the corporation is streamlined when there’s only one shareholder. This individual not only holds the sole ownership but also acts as the sole director. This consolidation of roles ensures that decision-making remains consistent and aligned with the corporation’s medical objectives.

Officer Roles: The sole shareholder serves as the president and treasurer. Other officer positions (apart from president and treasurer) can be held by non-licensed individuals, as permitted by CA Corporations Code Section 13403.

This flexibility is in line with the provisions of the CA Corporations Code Section 13403, ensuring a blend of medical expertise and diverse managerial skills.

California Medical Corporations with Two Owners/Shareholders

Shareholders: A majority of the shareholders, at least 51%, must be licensed physicians. The remaining shares, up to 49%, can be held by other licensed healthcare professionals, including licensed doctors of podiatric medicine, psychologists, registered nurses, optometrists, marriage and family therapists, clinical social workers, physician assistants, chiropractors, acupuncturists, naturopathic doctors, professional clinical counselors, physical therapists, pharmacists, midwives, and occupational therapists, as specified in CA Corporations Code Section 13401.5.

Directors: In medical corporations with two shareholders, both individuals must serve as directors. This requirement ensures that those with a significant stake in the corporation are involved directly with the strategic decision-making process.

Officers: The two shareholders will also need to distribute amongst themselves the roles of president, vice president, secretary, and treasurer. However, for other officer positions not explicitly named, individuals who are not licensed can be appointed. This flexibility, as outlined in CA Corporations Code Section 13403, allows the corporation to include individuals who may not be licensed healthcare professionals but possess other skills and expertise valuable to the corporation’s operations and governance.

Starting a Medical Corporation in California?

For a deeper understanding of California Medical Corporations, consider exploring additional resources: What is a California Professional Medical Corporation?, California Professional Medical Corporation Guide, and How to Start a California Medical Corporation. These articles offer a comprehensive view, covering aspects from formation to operation, aiding in the establishment and management of a successful medical corporation in California.

LawInc Has You Covered

Navigating through the complexities of California Medical Corporations doesn’t have to be a daunting task. With the right knowledge and understanding of the roles and responsibilities involved, you can confidently establish and operate a compliant and successful practice.

If you’re ready to take the next step in starting your Medical Corporation, LawInc is here to assist you every step of the way. We specialize in helping healthcare professionals like you launch and grow their practices with ease and confidence. Our expert team is well-versed in the legalities and requirements of California Medical Corporations, providing the support and guidance you need to get through the process smoothly.

Don’t leave your practice’s success to chance. Start your order with LawInc today and lay a solid legal foundation for your Medical Corporation. With our support, you can focus on what you do best – providing excellent healthcare services to your patients. Let’s get started on building your successful Medical Corporation today!