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Professional licensingMedical practice entities are heavily regulated. PLLC or PC required. Ownership typically restricted to licensed physicians. CPOM doctrine prohibits unauthorized corporate ownership.
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Medical Practice Licensing · File.Business

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.

Key facts

Start here.

Key fact
Entity options

PLLC, Professional Corporation, Partnership.

Key fact
CPOM doctrine

Corporate Practice of Medicine prohibits corporate ownership of medical practice in many states.

Key fact
Physician ownership

Most states require licensed physicians to own the practice.

Key fact
Telemedicine

Telemedicine licensing varies by state. May require multi-state licensure.

Key fact
HIPAA

Federal HIPAA compliance required. BAAs with vendors.

In depth

The full picture.

01

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.

02

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.

03

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.

04

Designated medical director

Most practices have designated medical director responsible for clinical operations and compliance.

05

State medical board

Each state has a medical board overseeing physician licensure and practice. Annual fees, license renewals, continuing medical education (CME).

06

HIPAA compliance

Federal HIPAA Privacy and Security Rules. Business Associate Agreements (BAAs) with all vendors handling PHI. Annual training. Risk assessments.

07

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.

08

Payer enrollment

Separate enrollment with each payer (Medicare, Medicaid, commercial insurance). NPI (National Provider Identifier) required.

09

Continuing requirements

Annual practice license renewal; individual physician license renewal; CME; payer revalidation; audits.

FAQ

Common questions.

Do medical practices need special licensing?
Often yes: many states require a medical practice to be a professional entity owned by licensed physicians and to follow rules like the corporate practice of medicine doctrine, in addition to the physicians' individual licenses. We flag your state's requirements and help form the right entity. See professional entities.
Does my medical practice need to be a professional entity?
Frequently: states often require a medical practice to be a professional LLC or professional corporation owned by licensed physicians rather than a standard entity, so the structure is licensing-driven. We flag whether your state requires a professional entity so your practice is formed correctly.
What is the corporate practice of medicine doctrine?
In many states, this doctrine restricts non-physicians from owning or controlling a medical practice or employing physicians to practice medicine, shaping how practices must be structured. We flag whether your state applies it so your practice is structured to comply rather than running afoul of ownership rules.
Do owners of a medical practice need to be physicians?
In many states, yes: ownership of a medical practice must generally be held by licensed physicians, with limited exceptions, so ownership is tightly constrained. We flag your state's ownership rules so your practice is structured with compliant ownership.
Does licensing affect how I can bring in partners or investors?
Yes: because ownership is often limited to licensed physicians, bringing in non-physician partners or investors can be restricted or require careful structuring, which affects growth and financing. We flag the constraints so you structure ownership and any outside arrangements within your state's rules.
What entity type should a medical practice use?
Typically a professional LLC or professional corporation where required for licensed practice, chosen based on your state's rules and tax preferences. We flag which professional entity fits your state and practice so you form the correct structure.
Does a medical practice have added compliance?
Yes: beyond entity and licensing rules, medical practices face privacy rules like HIPAA, billing compliance, and other healthcare regulations, so compliance is heavier than for many businesses. We flag the layers so your practice is set up to meet them, not just formed.
What ongoing requirements does a medical practice have?
Beyond entity annual reports, physicians maintain licenses, the practice maintains any required registrations, and healthcare compliance continues, so obligations are layered and ongoing. We track the entity side and flag the professional and regulatory requirements so nothing lapses.
Can File.Business help form my medical practice?
Yes: we form the professional entity your state requires, coordinate ownership within the corporate-practice-of-medicine rules, obtain the EIN, provide the registered agent, and flag the licensing and healthcare-compliance requirements, so your practice is set up in the correct, compliant structure.

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.

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How it works

How we deliver, end-to-end.

Four-step path from request to confirmation. State and IRS turnaround varies; our steps run in parallel where possible to compress the timeline.

1

Intake + scope

You tell us what you need through a short intake form (or a call for complex matters). We confirm scope, surface any gating issues (deadlines, missing documents, entity status), and quote any state fees that pass through at cost.

2

Prepare + verify

Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.

3

File with the authority

We submit directly to the state Secretary of State, FinCEN, IRS, USPTO, or whichever authority your filing requires. We pay state fees at cost and track the submission identifier in your account.

4

Confirmation + vault

Stamped certificate, IRS notice, or filing receipt arrives in your SOC 2 encrypted document vault the moment we receive it. Next filing deadline auto-added to your compliance calendar where applicable.

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Every state plus DC plus Puerto Rico - direct filings, not third-party reseller. We hold registered-agent qualifications in every state we operate.

Deadline guarantee

If we miss a filing deadline on a service you pay us to manage, we pay the state penalty. Specific to each plan and the filings it includes.

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60-day money-back promise

Change your mind in the first 60 days and we refund our service fee in full. State filing fees pass through at cost and are non-refundable once paid to the state.

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