Legal Question in Business Law in California

Re: CA Medical Corporation

The starting point is Corporations Code section 206, which says in part "....a professional corporation may engage in any business activity not prohibited by the respective statutes and regulations to which it is subject."

After a somewhat limited on-line search of WestLaw (on line), I did not find anything in the Limited Liability Company Act, the Corporations Code, or the Business and Professions Code that prohibits a medical professional corporation from being a member of an LLC.

Caution, however; the mere fact that I didn't find it in such a limited search doesn't mean there isn't a prohobotion. The place to check to be sure is the board in charge of regulation of the practice of medicine in California. Someone there is probably authorized, empowered and competent to tell you.

One other thing to check is the Articles of Incorporation of the PC itself. Unless the Articles authorize, expressly or by clear inference, the PC to engage in whatever the LLC does, the membership may be "ultra vires" (outside the corporate powers) of the PC. This could be overcome by amending the PC's Articles of Incorporation.