California midwives who practice midwifery are permitted to form professional corporations here in California. The statutory authority is set forth in the Moscone-Knox Professional Corporation Act (the “Moscone-Knox Act”). See Cal. Corp. Code, §13400 et seq. Like all types of corporate entities, a Midwifery Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form a Midwifery Corporation than to operate a practice as a sole proprietorship. The corporate form protects personal assets from being seized by business creditors and creating a California Professional Midwifery Corporation greatly facilitates adding licensed partners to a practice. The corporate form shields each of the partners from liability that may be alleged against the other(s). If you have questions about the requirements of forming a Professional Midwifery Corporation, or whether a Midwifery Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with midwives.

When forming a Professional Midwifery Corporation, retain an experienced San Diego corporate attorney to provide advice and assistance. There are special rules under the Moscone-Knox Act with respect to who may be shareholders — owners — in a Professional Midwifery Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Midwifery Corporation is unique in this way.

The permitted shareholders, who may also serve as officers and directors, but who may not be greater in number than the midwives and must collectively hold 49% or less of the shares are as follows:

Licensed midwifery corporation:

Licensed physicians and surgeons;
Licensed psychologists;
Registered nurses;
Licensed marriage and family therapists;
Licensed clinical social workers;
Licensed physician assistants;
Licensed chiropractors;
Licensed acupuncturists;
Licensed naturopathic doctors;
Licensed professional clinical counselors; and
Licensed physical therapists.

The corporation may have employees — such as a receptionist or a book-keeper — who are not licensed as long as those employees are not providing any sort of professional midwifery services.

Contact San Diego Corporate Law Today

For more information, contact attorney Michael J. Leonard, Esq., or Christina Gandy-Delgadillo, Esq., of San Diego Corporate Law. Michael and Christina can be reached at (858) 483-9200 or via email. These experienced corporate attorneys can ensure your Professional Midwifery Corporation is set up correctly and can assist with the annual maintenance of your California Professional Midwifery Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.