More About Professional Corporations
More About Professional Corporations
Nowadays, more and more people are beginning to turn to naturopathic medicine as the solution to many health problems. It is a safe and effective alternative option that more people are starting to trust. This is why naturopathic clinics are starting to pop up like mushrooms all over the world. If you’re planning to start your own business, read this article to learn expert tips on forming a naturopathic doctor corporation.
What is a Naturopathic Doctor Corporation?
A naturopathic doctor corporation is a type of professional corporation that is officially recognized by the Naturopathic Medicine Committee of California, and its main function is to provide services as naturopathic doctors.
Which Government Agency Regulates Naturopathic Doctor Corporations?
All professional corporations should abide by the rules and regulations set by the government agency that governs their respective professions. Naturopathic doctor corporations are regulated by the Naturopathic Medicine Committee of California under the Naturopathic Doctors Act.
What are the California State Laws and Codes that Regulate the Formation of a Naturopathic Doctor Corporation?
The following are the laws and codes in California that regulate the formation of naturopathic doctor corporations:
- California Corporations Code
- Business and Professions Code 3610-3686
- California Code of Regulations Title 16. Professional and Vocational Regulations, Division 13. Medical Board of California, Chapter 1. Division of Licensing, Article 13. Professional Corporations
If you want to read the full text of these laws and codes, go to the end of this page!
Client Question: I am a naturopathic doctor based in Los Angeles. I’ve been working on starting my own clinic. My colleagues have suggested that I do all the paperwork and incorporation online rather than through an attorney as it is faster and saves a lot of money. Has anyone been burned by this before?
Forming a Naturopathic Doctor Corporation in California – Top Questions Asked
We’ve helped numerous budding entrepreneurs start their own businesses in California. The following questions are the most common questions asked by those who intend to put up a naturopathic doctor corporation.
Are there namestyle formalities that need to be followed when forming a naturopathic doctor corporation?
Naturopathic doctor corporations are restricted to use a business name that is either a name or surname of one or more of the present, prospective, or past stockholders of the company.
Section 3674 of the Business and Professions Code states that the name of a naturopathic corporation or its fictitious business name must contain the words “naturopathic” or “naturopathic doctor” and, as appropriate, wordings or abbreviations denoting its status as a corporation.
Can naturopathic doctor corporations use fictitious business names?
A fictitious business name, also known as a “Doing Business As” or DBA, is any business name other than the name or surname of one or more of the present, prospective, or former shareholders of the company. Naturopathic doctor corporations are allowed to use fictitious business names, as long as the business name contains the words “naturopathic” or “Naturopathic doctor”.
Bylaws of a Naturopathic Doctor Corporation
Bylaws are set up at the formation of the professional corporation. These bylaws are necessary guidelines to address issues, such as who can be shareholders and who can hold an official position in the company.
Who can be issued stocks in a naturopathic doctor corporation?
This list of licensed professionals includes all persons eligible to be shareholders in a naturopathic doctor corporation:
- Licensed physicians and surgeons.
- Licensed psychologists.
- Registered nurses.
- Licensed physician assistants.
- Licensed chiropractors.
- Licensed acupuncturists.
- Licensed physical therapists.
- Licensed doctors of podiatric medicine.
- Licensed marriage and family therapists.
- Licensed clinical social workers.
- Licensed optometrists.
- Licensed professional clinical counselors.
Keep in mind that the sum of all shares owned by the shareholders of the company must not exceed 49 percent of the total number of shares of the naturopathic doctor corporation. Moreover, the number of shareholders in the company must not exceed the number of persons officially licensed by the Naturopathic Medicine Committee of California.
Who can be an officer or director of a naturopathic doctor corporation?
The same licensed professionals who can be issued stocks in a naturopathic doctor corporation can also hold office in the company as a director, president, vice president, secretary, and treasurer. These offices are dependent on the number of shareholders of the naturopathic doctor corporation.
In a situation where a naturopathic corporation only has one shareholder, that company only needs one director. That same shareholder can fill the role of director and serve as president and treasurer as well. In this kind of situation, the other officers in the business do not need to be licensed professionals.
If a naturopathic corporation only has two shareholders, then those two individuals can be the directors of the company. They, among themselves, can also fill the offices of the president, vice president, secretary, and treasurer.
Are there additional documents and certificates needed when forming a naturopathic corporation in California?
Naturopathic doctor corporations do not need to file a special report with the Naturopathic Medicine Committee of California to keep them apprised of changes in the company. Furthermore, this type of professional corporation does not need a Certificate of Registration to operate.
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Full California Laws/Codes that Apply to Naturopathic Corporations
