California optometrists who practice optometry 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, an Optometry Corporation for an optometry practice is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form an Optometry 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 Optometry 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 Optometry Corporation, or whether an Optometry Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with optometrists.

Pursuant to California law, a Professional Optometry Corporation has certain naming requirements that must be met when the corporation is formed. These name options include:

Optometry: 3163. “Except as provided in Section 3078, the name of an optometric corporation and any name or names under which it may be rendering professional services shall contain and be restricted to the name or the last name of one or more of the present, prospective, or former shareholders and shall include the words optometric corporation or wording or abbreviations denoting corporate existence, provided that the articles of incorporation shall be amended to delete the name of a former shareholder from the name of the corporation within two years from the date the former shareholder dies or otherwise ceases to be a shareholder.”

Consult with the experienced San Diego corporate attorneys to ensure that the name you want for your Professional Optometry Corporation is compliant.

When forming a Professional Optometry 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 Optometry Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Optometry 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 optometrists and must collectively hold 49% or less of the shares are as follows:

Optometric corporations:

Licensed physicians and surgeons;
Licensed doctors of podiatric medicine;
Licensed psychologists;
Registered nurses;
Licensed chiropractors;
Licensed acupuncturists; and
Naturopathic doctors.

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 optometric 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 California Professional Optometric Corporation is set up correctly and can assist with the annual maintenance of your California Professional Optometry Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.