Incorporation Attorney has helped many medical professionals form a corporation. Part of the assistance we provide these businesses is in choosing a name for their company. In one of the recent clients, the owner wanted to name their medical corporation something other than their registered name. The owner was not sure if using a Doing Business As name was allowed for medical corporations in California.
The State of California Allows the Use of Fictitious Business Names for Medical Corporations
State laws require medical corporations in California to use business names that are restricted to the name or surname of one or more of the present prospective or former stockholders of the company. However, if the company decides to use a Doing Business As or DBA name, they may also do so, as long as it is filed with and approved by the Medical Board of California.
Want to form a medical professional corporation? Learn how by clicking here!
When Does a Medical Corporation Need a Fictitious Business Name Permit?
Fictitious business name permits are required if a licensed medical professional wants to practice under a name other than the name on their license. It is also required if a medical professional owns a corporation that operates in a name other than his or her own. Permits to use a Doing Business As name is also required if a group of medical professionals forms a partnership that uses a name other than the name on their license in any public communication, advertisement, signage, or announcement.
John Smith, M.D., for example, does not need a fictitious name permit to practice under his own name. However, if John Smith, M.D. decides to present himself as a doctor who practices under the name “Light Giver Medical Group,” he needs to have a fictitious name permit to practice under “Light Giver Medical Group.”
Another example is if Dr. Joe, Dr. June, and Dr. Jay would like to practice under “Joe, June, and Jay, Physician Partnership. All the licensed doctors in this group need a fictitious name permit to practice under that chosen Doing Business As name. No permit is needed if each licensed doctor practices under their own name only.
Laws and Regulations Surrounding the Use of Fictitious Business Names
A fictitious business name permit is a requirement established by the State of California for medical corporations since January 1, 1980. The following laws and regulations should be reviewed by those who intend to use fictitious business names for their medical professional corporation:
- Business and Professions Code (BPC)
- Corporations Code (CORP)
- Insurance Code (INS)
- Penal Code (PEN)
- Welfare and Institution Code (WIC)
- California Code of Regulations
Common Sections of statutes and regulations that are related to the application and use of fictitious name permits include, but are not limited to, the following:
- BPC Sections: 2285 to 2286, 2415 to 2417.5
- CORP Sections: 13400 to 131410
- INS Section: 1871.4
- PEN Sections: 549 to 550
- WIC Sections: 14107 or 14107.2
- CCR Section: 1350
Requirements to Apply for a Fictitious Name Permit for a Medical Corporation in California
The Licensing Program of the Medical Board of California will only issue a fictitious name permit if the following requirements are satisfied:
- It is imperative that the applicant(s) or shareholders of the medical corporation must hold valid and current licenses as physicians and surgeons or doctors of podiatric medicine.
- The professional practice of the applicant(s) must be fully owned and controlled by the applicant(s), which means that it meets the requirements as defined in the Corporations Code Sections 13401 and 13401.5.
- The fictitious business name by which the applicant intends to practice must not be deceptive, misleading, or confusing.
- Once a permit is issued, it must be accompanied by an eligibly written notice that is displayed visibly for all the company’s patients and employees to see. The notice must be displayed at all the places of business indicated in the permit.
- The Licensing Program has the right to revoke or suspend any permit issued if the medical corporation is found to be noncompliant with the provisions of the law and regulations.
- In the event that a licensee’s certificate to practice medicine or podiatric medicine is revoked or suspended, the fictitious business permit issued in that professional’s sole practice automatically becomes invalid.
Can I Have More Than One Fictitious Name for My Medical Corporation in California?
A lot of physicians prefer to operate under a different, more creative business name. It’s a good thing the California law allows you to own a fictitious name permit. In fact, you can own more than one!
A fictitious name permit gives licensed surgeons and physicians the ability to acquire a trade name other than their own. Applications can be submitted to the California Medical Board. Each fictitious name permit requires a separate application in case you wish to own more than one. The process can be done online so you can monitor your application’s status easily. These permits are renewable every two years.
Additional Information from the Medical Board of California Licensing Program
Medical corporations that intend to apply for a fictitious name permit must know that the permit has a renewal cycle of two years.
The application fee for a fictitious name permit (FNP) with the California Medical Board is $70, and the renewal fee is $50 every two years. The check should be made payable to the Medical Board of California.
Common Problems Related to Not Having a Fictitious Permit for Medical Corporations
It is a prevalent misconception among medical professionals that having a city or county fictitious issued fictitious business name is all they need to practice under a name other than their own. A city or county fictitious business name IS NOT the same as the fictitious business name permit issued by the Medical Board of California.
Consult a Lawyer That Specializes in Medical Professional Corporations
To better understand the requirements for applying and filing for a fictitious business name, it is best to talk to a lawyer that specializes in the formation of medical corporations in California. We, at Incorporation Attorney, take pride in our stellar reputation of helping medical professionals start their own corporations in California. Call our lawyers today at +1 (714) 634-4838!
Here’s the link to the application form for a fictitious name permit! Click here!
