Medical practice licensing. Physician practice entity.
Medical practices must form Professional LLC or Professional Corporation in most states. Ownership restricted to licensed physicians (or under specific arrangements). Corporate practice of medicine doctrine restricts certain ownership models.
Start here.
PLLC, Professional Corporation, Partnership.
Corporate Practice of Medicine prohibits corporate ownership of medical practice in many states.
Most states require licensed physicians to own the practice.
Telemedicine licensing varies by state. May require multi-state licensure.
Federal HIPAA compliance required. BAAs with vendors.
The full picture.
Entity options
Professional LLC (PLLC) most common for new practices. Professional Corporation (PC) historical and continues. Partnership for group practices. Some states permit limited corporate structures with specific exemptions.
CPOM doctrine
Corporate Practice of Medicine prohibits non-physicians from owning or controlling medical practices in many states. Exception jurisdictions: Arizona, Colorado, Maine, Maryland, Nebraska, Tennessee, Utah. Other states maintain strict CPOM. Workarounds: MSO (Management Services Organization) structure with operations company separate from clinical entity.
Ownership restrictions
Most states require all owners to be licensed physicians in the practice state. Some states allow other healthcare professionals (PAs, NPs) limited ownership stakes. Most prohibit lay (non-physician) ownership.
Designated medical director
Most practices have designated medical director responsible for clinical operations and compliance.
State medical board
Each state has a medical board overseeing physician licensure and practice. Annual fees, license renewals, continuing medical education (CME).
HIPAA compliance
Federal HIPAA Privacy and Security Rules. Business Associate Agreements (BAAs) with all vendors handling PHI. Annual training. Risk assessments.
Multi-state telemedicine
Telemedicine across state lines typically requires physician licensure in patient state. Multi-state licensure expensive. Interstate Medical Licensure Compact (IMLC) facilitates simplified multi-state licensing for IMLC member states.
Payer enrollment
Separate enrollment with each payer (Medicare, Medicaid, commercial insurance). NPI (National Provider Identifier) required.
Continuing requirements
Annual practice license renewal; individual physician license renewal; CME; payer revalidation; audits.
Common questions.
Can I use a standard LLC for my medical practice?
What is CPOM?
What is an MSO?
Can a non-physician own equity?
What is the IMLC?
Telemedicine licensing?
HIPAA required?
NPI?
Set up your professional firm.
PLLC formation, registered agent, ongoing compliance. We handle entity-level requirements; you handle the professional practice.
Professional licensing is handled by state boards. File.Business handles entity formation and ongoing compliance.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.