Legal Question in Business Law in New York

corporate law

I am a pediatrician. I want to form an LLC to practice medicine. Can I start it with 2 other members who are not physicians? I know I can not form a PLLC, but can it be an LLC? I am in NY. If I can not start LLC, how can I have my 2 partners who are not physicians be owners?


Asked on 6/20/09, 6:39 am

2 Answers from Attorneys
Kristen Browde Browde Law, P.C.

Re: corporate law

No.

Because non doctors can not share in medical fees, they are prohibited from owning shares in corporations formed for the purpose of practicing medicine, except when they receive shares in the corporation as "transferee of shares by operation of law or court decree." The relevant legal sections are CLS Bus Corp �� 1511, 1503, and 1507.

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Answered on 6/20/09, 8:54 am
William Frenkel Frenkel Sukhman LLP

Re: corporate law

In response to your question, New York law limits the choice of entities for medical practice to PCs, PLLCs and LLPs with some very limited exceptions. Thus, if you form an LLC, it generally cannot be used to operate a medical practice. You may want to explore non-equity contractucal arrangements with respect to certain services that are not medical in nature, though, if your partners are not physicians. Contact an attorney for advice for your specific situation.

The above reply is in the nature of general information, is not legal advice and does not form an attorney-client relationship.

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Answered on 6/20/09, 1:11 pm


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