Legal Question in Business Law in California

Incorporation and Sharing of Medical fees

I am a health care professional who is licensed to perform Mammograms. I am planning to go into business with a licensed doctor in which I will perform mammograms and he will read them. We would like to create, I think, a general corporation in which we will be the only stockholders. Are there any laws relating to fee sharing between a licensed doctor and an unlicensed person such as myself that we need to be aware of and is a general corporation the best way in which to organize our business?


Asked on 10/14/99, 6:55 pm

1 Answer from Attorneys

Roger Renfro Renfro & Associates Law Corporation

Re: Incorporation and Sharing of Medical fees

In California, there are legal constraints imposed on the sharing of fees with professionals in general, and health practitioners in particular. Your future partner, purportedly a licensed physician and surgeon in California, may be able to help you. The simplest and less costly resource I know of to get a general response to your question would be the California Medical Association's legal department. Possibly a more valuable resource would be to contact a competent business attorney who is familar with the legal and business issues of forming, operating, and potentially dissolving a business organization such as the intended one. Please be aware that there are many additional areas you should explore even if your a able to successfully create any business organization (e.g., a buy-sell agreement between the owners; the most desireable form of business organization for growth, taxation, merger are but a few).

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Answered on 10/18/99, 11:24 am


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