More About Professional Corporations
More About Professional Corporations
One of the first things you need to know as you set up your private clinic is the physical therapy practice name requirements in California. As usual, there are rules to follow strictly, or you’ll end up doing things all over again.
Physical therapy is a rewarding profession because you help many people get better and enjoy life to the fullest. But whether you have been practicing for a long time or just a few years, running your clinic is something you’ve always wanted to do – to become your own boss, work on your own time, and grow career-wise as a physical therapist.
When you are ready to start your physical therapy clinic, abiding by the namestyle rules is important. These are specific to the kind of license you hold and the type of professional corporation you should form. Remember that these rules also affect all the corporate formation paperwork you need to put together while forming your corporation.
Why Physical Therapy Clinics in California Should Form a Professional Corporation
In setting up your physical therapy clinic, you can’t just pick any business entity, especially if you want to operate in California. Other states may allow LLCs and corporations to open a physical therapy clinic, but California doesn’t. Here, the California Secretary of State permits only professional corporations to set up their private medical practice.
Section 13401 of the California Corporations Code defines a physical therapy corporation as a type of corporation authorized to render professional services. Physical therapy clinics with physical therapists as shareholders and board members must also comply with the Moscone-Knox Professional Corporation Act.
What Are the Specific Namestyle Rules for a Physical Therapy Corporation?
The corporate name requirements are regulated by the following agencies:
- The California Corporations Code
- Business and Professions code
- The California Code of Regulations
The Physical Therapy Board of California regulates physical therapy business names for physical therapy corporations.
Physical Therapy Practice Name Requirements and Guidelines You MUST Follow in California
The physical therapy practice name requirements in California are easy to remember. It all boils down to a set of defined words that must be included in your corporate name. The name of a physical therapy corporation and any name or names under which it may render professional services shall contain the words “physical therapy” or “physical therapist”, and wording or abbreviations denoting corporate existence, such as “Corporation”, “Incorporated” or “Inc.”
For example, Fred Flintstone Physical Therapy Clinic Inc. Some businesses use fictitious names for the purpose of marketability though but are medical corporations also allowed to use one?
Is a Physical Therapy Professional Corporation Allowed to Have a Fictitious Name or DBA?
The Physical Therapy Board of California allows physical therapy clinics to use a fictitious name or DBA (Doing Business As…). A fictitious name or DBA is a name you use other than your corporate name. Some physical therapy corporations do this to protect their privacy or if they want to be more creative and attract clients.
Understand that naming your company also comes with strict rules:
(1) The name is not misleading and
(2) The name contains the words “physical therapy” or “physical therapist”
For example, Fred Flintstone Physical Therapy Inc. may use Flintstone Physical Therapy instead provided that the company secures a fictitious name permit. Multiple fictitious names can be used, each name requiring a separate fictitious name permit.
Make Sure You Know the Physical Therapy Practice Name Requirements in California for a Hassle-Free Business Set-up
Having in-depth knowledge about the physical therapy practice name requirements in California is important. Strictly following the namestyle rules will save you from potential delay and wasted resources as you get things done right on your first attempt. Getting it right the first time helps you avoid redoing everything.
However, no matter how thorough, any research on the Internet does not guarantee accurate answers. Many articles on physical therapy corporation formation simplify the steps but can be complicated in reality, especially if you are not familiar with the laws.
Don’t risk it. Even if you can afford to make mistakes, getting it right the first time is better so you can get started quickly. The best way to ensure full compliance is to consult an incorporation attorney who knows the ins and outs of corporate laws.
Incorporation Attorney is here to help. If you want to set up your own physical therapy practice in California, we will guide you through the laws and assist you with the paperwork. If you have questions or need immediate legal support, contact us at +1 (714) 634-4838 or explore our website to get more information on how we can help.
