How to Set Up a PLLC for a Medical Practice
Prepare Articles of Organization., Publish notice of your organization., Obtain medical malpractice insurance.
Step-by-Step Guide
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Step 1: Prepare Articles of Organization.
The articles of organization for a PLLC are often quite similar to the articles required for LLC formation, except they require different information regarding the profession in which the business wishes to engage.
Visit your state’s office or website to obtain a template or form to use for your articles of organization.
Templates usually need not be used, but in general, they are the best place to start to draft your own articles.
Choose a name.
Some states have rules regarding what words can or cannot be in the name of a PLLC.
A general rule is that the name must include a reference to the fact that the company is a PLLC.
Appending “PLLC” to the end of the name is usually sufficient.
The name of the company should be unique.
Visit your state’s department of state website to search for the name you wish to use to make sure that another organization is not already using that name.
State the purpose for which the PLLC operates.
In the case of a PLLC, unlike an LLC, you usually need to be specific here about the type of profession that the PLLC will practice.
So, in the case of a medical practice you will state that the PLLC will offer medical services.
Provide the names of the physicians that will practice within the PLLC.
All the members of the PLLC must be licensed members of the medical profession.
You may need to provide copies of proof of all medical licenses or license numbers so that the state can be sure that all the members of the PLLC are properly qualified to practice medicine.
State that you authorize the Secretary of State as the agent for service of process.
This statement means that should your PLLC be sued, those who allege wrongdoing by your company can contact the Secretary of State with the lawsuit documents, which the Secretary of State will forward to the PLLC at the address you provide to the state.
Provide any additional information required by state law.
If the state in which you are organizing your practice requires it, you may need to file paperwork that states that you are a member in good standing of your professional licensing association.
If so, contact the state department that issued your license for this paperwork.
Usually, the certificate required by the state confirms that you have satisfied all the necessary requirements necessary to practice medicine and have not had your license revoked or suspended.
Sign the document and file it with your state along with the filing fee.
The address and information about the filing fee is available on each state’s website. -
Step 2: Publish notice of your organization.
Some states require that you publish an announcement that you intend to form a PLLC in a newspaper to give notice to the residents of your state.
In some states, such as New York, the county in which you organize your business will designate the newspaper(s) in which you are required to publish.
There is usually a small fee associated with the publication, and the publisher of the newspaper will issue you a certificate of publication, which you must forward to your state. , A physician should, and in some cases must, obtain malpractice insurance.
Medical malpractice occurs when a physician performs his or her profession in an improper manner.
The fact that the physician is a member of a “limited liability” organization does not shield the physician from liability for malpractice.
The limited liability that the PLLC enjoys relates to other types of liability, such as if a patient slips on a wet floor inside the doctors office and sues the office for common negligence.
In that case, the patient may be able to collect damages from the PLLC (the business itself), but not the physician personally.
The limited liability of a PLLC means that those who may sue the PLLC will only be able to recover damages from the PLLC itself, not the members (physicians) of the PLLC.
This benefits the physician-members because they are then not personally liable for lawsuits against the PLLC. -
Step 3: Obtain medical malpractice insurance.
Detailed Guide
The articles of organization for a PLLC are often quite similar to the articles required for LLC formation, except they require different information regarding the profession in which the business wishes to engage.
Visit your state’s office or website to obtain a template or form to use for your articles of organization.
Templates usually need not be used, but in general, they are the best place to start to draft your own articles.
Choose a name.
Some states have rules regarding what words can or cannot be in the name of a PLLC.
A general rule is that the name must include a reference to the fact that the company is a PLLC.
Appending “PLLC” to the end of the name is usually sufficient.
The name of the company should be unique.
Visit your state’s department of state website to search for the name you wish to use to make sure that another organization is not already using that name.
State the purpose for which the PLLC operates.
In the case of a PLLC, unlike an LLC, you usually need to be specific here about the type of profession that the PLLC will practice.
So, in the case of a medical practice you will state that the PLLC will offer medical services.
Provide the names of the physicians that will practice within the PLLC.
All the members of the PLLC must be licensed members of the medical profession.
You may need to provide copies of proof of all medical licenses or license numbers so that the state can be sure that all the members of the PLLC are properly qualified to practice medicine.
State that you authorize the Secretary of State as the agent for service of process.
This statement means that should your PLLC be sued, those who allege wrongdoing by your company can contact the Secretary of State with the lawsuit documents, which the Secretary of State will forward to the PLLC at the address you provide to the state.
Provide any additional information required by state law.
If the state in which you are organizing your practice requires it, you may need to file paperwork that states that you are a member in good standing of your professional licensing association.
If so, contact the state department that issued your license for this paperwork.
Usually, the certificate required by the state confirms that you have satisfied all the necessary requirements necessary to practice medicine and have not had your license revoked or suspended.
Sign the document and file it with your state along with the filing fee.
The address and information about the filing fee is available on each state’s website.
Some states require that you publish an announcement that you intend to form a PLLC in a newspaper to give notice to the residents of your state.
In some states, such as New York, the county in which you organize your business will designate the newspaper(s) in which you are required to publish.
There is usually a small fee associated with the publication, and the publisher of the newspaper will issue you a certificate of publication, which you must forward to your state. , A physician should, and in some cases must, obtain malpractice insurance.
Medical malpractice occurs when a physician performs his or her profession in an improper manner.
The fact that the physician is a member of a “limited liability” organization does not shield the physician from liability for malpractice.
The limited liability that the PLLC enjoys relates to other types of liability, such as if a patient slips on a wet floor inside the doctors office and sues the office for common negligence.
In that case, the patient may be able to collect damages from the PLLC (the business itself), but not the physician personally.
The limited liability of a PLLC means that those who may sue the PLLC will only be able to recover damages from the PLLC itself, not the members (physicians) of the PLLC.
This benefits the physician-members because they are then not personally liable for lawsuits against the PLLC.
About the Author
Kyle Stone
Dedicated to helping readers learn new skills in practical skills and beyond.
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