NewPoint Law Group

Physician salaries in a medical PC don't need to be equal between partners. They do need to be reasonable for the actual work performed. The IRS and FTB review this in S-corp-elected entities. — NewPoint Law Group

6/ Compensation structure between partners should be agreed upon in writing before operations begin. Post-formation disputes over pay are difficult to resolve without documented terms. — NewPoint Law Group | California Business Law

5/ Name protection requires multiple steps: trademark, domain registration, and fictitious business name filings address different aspects of brand protection.

6 formation issues California physician-owners commonly overlook: (Save this 🔖 before filing anything)

The corporate veil in a Professional Corporation can be pierced. Common causes: commingling personal and business funds, ignoring required corporate formalities, or failing to maintain proper records. — NewPoint Law Group

Commingling personal and business funds gives courts grounds to "pierce the corporate veil" in California. Once that happens, the entity's protection may not apply. — NewPoint Law Group | California Business Law

Negligence or malpractice claims can still reach you personally if insurance coverage has gaps. The entity and malpractice insurance address different risks.

"My Professional Corporation will protect my personal assets." Generally true — with important exceptions that are worth understanding before you rely on that protection.

Physician partnership ownership in a California medical PC depends on who your co-owner is. 2 physicians: 50/50 is permitted. Physician + non-physician licensed pro (NP, PA, etc.): physician must hold ≥51% — California Corporations Code § 13401.5. — NewPoint Law Group

Without documented expectations before operations begin, small disagreements tend to compound. Causes of action that could have been avoided with a well-drafted agreement become expensive to resolve. — NewPoint Law Group | California Business Law

Salaries in a medical PC don't have to be equal. They do need to be "reasonable compensation" based on actual roles and responsibilities. The IRS and FTB pay attention to this in S-corp-elected entities.

Planning to partner with another physician to start a California medical practice? The ownership structure depends on who your co-owner is — and getting it wrong creates compliance problems before you see a single patient.