Legal Framework

• Governing Laws: California veterinary corporations must adhere to the Moscone-Knox Professional Corporation Act, California Corporations Code, and other relevant statutes and regulations​
• Regulatory Body: Overseen by the Veterinary Medical Board​
• Professional Services Definition: As outlined in Section 13401 of the Corporations Code​

Incorporation Process

• Formation: File articles of incorporation with the California Secretary of State.
• No LLCs: Cannot form as an LLC or traditional corporation for veterinary services​​
• Structure: Typically structured as an S-Corporation for tax reasons and to provide liability protection​ (except for malpractice).

Ownership Requirements

• Licensed Professionals: Directors, shareholders, and officers must be licensed veterinarians, except as allowed under certain conditions by Section 13403 of the Corporations Code​
• Naming Conventions: Must include “veterinary corporation” or similar wording to denote corporate existence

Financial Protocols

• Disqualified Persons: A disqualified shareholder cannot accrue benefits from the veterinary corporation​.
• Stock Regulations: Rules for selling stock of disqualified or deceased persons​
• Insurance Requirements: Must secure insurance or equivalent for patient claims related to professional services​.

Ethical Compliance

• Professional Conduct: Must not engage in any act that would be deemed unprofessional under current laws​.
• Punishable Violations: Violations of the Professional Corporation Act or related regulations can lead to punishment as per Section 4831​.

Exemptions and Miscellaneous

• Veterinary Premises: Holding a certificate of registration of veterinary premises does not require forming a veterinary corporation.